3 Lesser-Known AI Stocks with Potential for Growth

The 'Magnificent Seven' may be the AI powerhouses, but their dominating presence and stellar performance can overshadow other promising AI players in the stock market. Investors seeking growth may find greater opportunity in lesser-known stocks that don't share the heavy market capitalisation of giants like Tesla, which stands at $772 billion. While the fame of these seven AI companies is warranted, there's an increased interest in exploring alternative investment options beyond their scope.

SoundHound AI: The Underestimated Innovator

SoundHound AI has made a name for itself in AI-powered voice recognition, providing services to industries like automotive and quick-service restaurants. Despite coming across as a fresh face post its 2022 SPAC merger, the company has been refining its audio analysis AI since 2005. Even with a strong customer base that includes companies like Snap and Netflix, SoundHound's stock price hasn't seen the dramatic upticks of its more well-known peers, presenting an attractive option for investors.

Lemonade: Squeezing Opportunity in Insurance

Lemonade, an AI-centric insurance firm, has been making waves with its technology that aims to eradicate human error in the insurance sector. Although the fulfillment of its ambitious disruption is still a work in progress, Lemonade's rapidly climbing revenue indicates significant potential. The stock's valuation has not yet caught up with its growth, possibly pointing to a ripe opportunity for investors looking for a burgeoning AI investment.

NXP Semiconductors: The AI Enabler

Lastly, NXP Semiconductors might not be the typical AI stock, but it's crucial to the ecosystem. The company's chips enable smarter industrial machines, secure mobile devices, and efficient power control in electric vehicle batteries. While the company's role in AI might be more indirect, its significance in the sphere and current reasonable stock valuation make it a solid choice for those looking to get involved with AI's continued integration into various tech sectors.

Investing, AI, Growth