Dividend Stocks

3 Lesser Known AI Stocks You Haven’t Heard of Yet

The popularity and overall interest in generative AI have investors clamoring for the next big AI company. Many companies that lead the stock market have jumped into the AI buzz, such as Microsoft (NASDAQ:MSFT), with their Azure AI technology being used across their many different platforms. Alphabet (NASDAQ:GOOGL) is using AI to help streamline its coding abilities. And Nvidia (NASDAQ:NVDA) has seen the most favorable results following its entrance into the AI space, with the production of chips that help power generative AI technology. This has led to the rise of AI stocks that are relatively unknown.

With the enhanced interest in companies developing AI tools and services now, it is a field that can see massive growth potential in the near future. Exposure to AI stocks is a very good idea for investors looking to capture the upside of this popular area of the market. The three stocks I will mention below are overlooked AI-related companies that could offer a perfect opportunity with increased interest and innovation in generative AI technology.

SoundHound AI (SOUN)

Source: Phonlamai Photo / Shutterstock.com

SoundHound (NASDAQ:SOUN) is located in Santa Clara, California. They focus on conversational intelligence, producing AI voice technology for companies with automated conversation needs in English and other languages. They also offer text-to-speech services.

Their IPO date was on April 2. In May, the company reported first quarter earnings with revenue that increased by 56% from the year before. 

SoundHound has to raise funding for their business year-to-date through April to approximately $150 million. Their technology was showcased at CES 2023. And the company has announced a few business highlights for the quarter, including launching SoundHound Chat AI, which is a voice assistant model similar to ChatGPT. This makes it one of those AI stocks that are relatively unknown.

Grab Holdings (GRAB)

Source: Nor Sham Soyod / Shutterstock.com

Singapore-based Grab Holdings (NASDAQ:GRAB) offers a variety of services via its app, including food delivery, transport, and financial services. A recent earnings report revealed that its year-over-year total revenue has more than doubled due to business growth and changes in their delivery model.

Grab uses AI to streamline its food delivery and transport sectors. Despite this, its stock price hovers around an all-time low of just over $3 per share. This marks an 80% drop from its late 2021 high of over $16 per share. All in all, it’s one of those AI stocks that are relatively unknown

Despite past profitability issues, recent earnings show promise with net losses halved compared to Q1 2022, suggesting the company is moving in a positive direction.

Bandwidth (BAND)

Source: shutterstock.com/Allies Interactive

Bandwidth (NASDAQ:BAND) is located in Raleigh, North Carolina, and they are a cloud communication company that uses programming interfaces for a wide range of services such as voice calling, telecom routing, SMS gateway capabilities, and caller ID management.

The company’s IPO date was back at the end of 2017. Their stock is trading much lower at this time, hovering at $13 per share; in January 2021, the company was trading at over $175 per share. The company has previously announced weak guidance regarding growth and profit. But, recently has announced strategic partnerships with Amazon (AMZN) web services (AWS) to use Amazon Chime Software Development KIT (SDK), and Miratech, an IT service provider, that will give Bandwidth the ability to improve their digital customer experience.

On their first quarter earnings, total revenue grew slightly by 5% compared to the year prior. Net income from the company went from a deficit of $7 million in Q1 2022 to a gain of $4 million in Q1 2023.

The company could offer a unique opportunity for investors looking for cheap stocks heavily invested in AI that have the potential for future growth due to an increase in partnerships the company has been announcing. And the growth in their revenue and net income leads to the prospect of a great growth company.

On the date of publication, Noah Bolton did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.

Newsletter