AI companies are playing a vital role in fostering innovation throughout the economy.
Building generational wealth in the stock market doesn’t require being a renowned investor like Warren Buffett. Focusing on innovative companies driving economic change is key. As Cathie Wood of Ark Invest highlights, investing in companies on the front lines of change can lead to significant investor success.
A company’s revenue growth often signals its ability to capitalize on long-term opportunities. Below are two high-growth stocks worth considering for long-term investment to build wealth for future generations.
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1. SoundHound AI
SoundHound AI (SOUN -1.84%) is a smaller player with the potential for significant returns as the artificial intelligence (AI) sector grows. The company has been innovating in voice technology and has established partnerships with major restaurants, positioning it as a leader in the expanding voice assistant market.
Quarterly revenue has surged threefold since 2022, largely due to acquisitions and partnerships with new restaurant locations. In the first quarter, revenues reached $29 million, representing a 151% year-over-year increase. This revenue stems from various channels, including product royalties, subscriptions, advertising, leads, and transactions via voice-enabled products.
There is a potential paradigm shift in how consumers will utilize AI over the next 15 years, especially in placing orders. A study by SoundHound found that many U.S. drivers with access to voice assistants prefer using them for food orders instead of waiting in drive-thru lines. Currently, SoundHound’s technology is used in around 13,000 restaurant locations, and it is exploring monetizing transactions via voice AI, with the voice commerce market projected to be worth $63 billion.
2. Nvidia
Image source: Nvidia.
For innovations like voice technology to thrive, advanced computer chips are necessary for AI training. Nvidia (NVDA -0.12%) is the leading provider of these chips, positioning itself advantageously to reward shareholders with significant wealth.
Every sector is leveraging AI to enhance efficiency and extract valuable insights from data, driving heavy investments in AI infrastructure. Nvidia’s chips, software, and networking solutions are essential for data centers. Recently, the company reported a 69% year-over-year revenue growth, reaching $44 billion.
Even as major cloud providers and AI researchers develop custom chips, Nvidia’s trajectory remains strong due to its unparalleled computing power. Its latest Blackwell platform achieved record scores in AI inference benchmarks. Nvidia’s market strength creates a beneficial cycle for innovation, allowing the company to convert 51% of its revenue into net profit, fueling further investment in new technology.
With its growth momentum, Nvidia could sustain quarterly revenue growth of 20% or more for years. As data centers transition to advanced AI computing, analysts anticipate annual earnings growth of 29%, potentially doubling the share price.
