Diversifying your portfolio is undoubtedly part of the rules of a good investor. In the big world of publicly traded companies, not all companies are 100% likely to be successful and generate the expected returns. One way to accomplish this diversification is thru taking positions in under-appreciated AI stocks.
These top AI stocks could tentatively be a great option for 2024. Let’s take a look.
SoundHound (SOUN)
SoundHound (NASDAQ:SOUN) is making waves in the world of voice AI, recently sealing the deal to acquire SYNQ3 Restaurant Solutions.
This strategic move positions them as a major player in voice AI for U.S. restaurants, expanding their reach to more than 10,000 locations. The merger capitalizes on SoundHound’s two decades of AI innovation and SYNQ3’s deep industry expertise, bringing together a powerhouse of talent and relationships.
Financially, they are on the upswing. Third quarter results show reported revenue of $13.3 million, up a solid 52% sequentially and 19% year-over-year.
With a gross margin of 73%, the company also shows a 46% improvement in operating loss, a 33% improvement in net loss, and a remarkable 57% improvement in adjusted EBITDA (non-GAAP) year-over-year. This makes it one of those AI stocks to consider.
Beyond the numbers, they are introducing innovative products such as Employee Assist. This conversational AI tool is a game-changer for restaurant staff, enabling them to access vital information about food, tasks, and operations.
In a world of labor shortages, Employee Assist provides a hands-free solution, helping employees, even those new to the job, get instant answers to their questions.
Veritone (VERI)
Veritone (NASDAQ:VERI) is a cutting-edge company known for creating artificial intelligence solutions focused on human usability.
Despite facing financial difficulties in Q3 2023, where revenue fell 6% and 22% compared to the same period in 2022, they remain in the spotlight as an unexpected competitor poised to succeed in the AI field in 2024.
Challenges include Managed Services and Software Products declines, with reduced spending from key customers such as Amazon impacting its Software revenue.
A notable milestone for Veritone is its partnership with Airspeeder, the world’s leading racing series for manned electric flying cars. Through this partnership, Veritone’s Digital Media Hub (DMH) plays a crucial role in Airspeeder’s digital media management, content and data dissemination.
This strategic alliance is expected to drive the growth of this exciting new sport globally, with Veritone’s expertise in sports as a key driver of success.
Veritone is also contributing to the Amazon Web Services (AWS) Generative AI Partner Center of Excellence (CoE) in a move that reinforces its commitment to responsible AI development.
This initiative aims to equip AWS partners with resources and tools for ethical generative AI development, showcasing Veritone’s dedication to the responsible advancement of AI technology.
BlackLine (BL)
BlackLine (NASDAQ:BL) is an innovator in the world of finance, making life easier for businesses by offering cutting-edge solutions to streamline financial operations.
In the financial spotlight, its third quarter of 2023 was a parade of successes. Its total revenue was up 12% to $150.7 million. Notably, they went from a loss of $20.0 million in 2022 to net income of $11.9 million this time around.
It’s not just about the numbers; its operating and free cash flow also greatly boosted, reaching $37.0 million and $31.4 million, respectively. All in all, it’s one of those AI stocks to buy.
BlackLine is not only concerned about money but is on a mission to bridge the technology competency gap. A survey they commissioned revealed that global leaders in finance and accounting are ready to embrace new technologies, especially AI.
But there’s a problem: many feel they lack the skills to make it happen. BlackLine sees this challenge as an opportunity, believing in the power of automation to elevate and empower finance teams.
They also enhanced their Microsoft Dynamics 365 Connector. Picture it: real-time notifications, seamless collaboration through Microsoft Teams, and financial closings faster than a speeding bullet.
As a long-time Microsoft (NASDAQ:MSFT) partner, BlackLine is weaving a collaborative accounting hub, making financial operations more seamless for companies that rely on Microsoft for their finances.
As of this writing, Gabriel Osorio-Mazzilli did not hold (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 (no position)
