1 Unstoppable AI Stock to Buy Before It Soars More Than 141%, According to Wall Street

Taking a look at what stocks Wall Street analysts believe could be great buys is a great way to source investment ideas. With the market turning bearish on the artificial intelligence (AI) outlook (for really no good reason), now is an excellent time to go bargain hunting.

One that I follow that looks like a no-brainer buy based on Wall Street projections is SoundHound AI (NASDAQ: SOUN). The current one-year average price target, according to Yahoo! Finance, is $14.62, or a 141% increase from the price at the time of this writing. If the stock can deliver more than a double in a one-year time frame, then it's a genius buy right now.

So, is SoundHound AI worth an investment? Let's take a look.

Image source: Getty Images.

SoundHound AI is sitting on a huge growth opportunity

SoundHound AI does exactly what you'd expect it to do: combine audio recognition technology with generative AI. The applications for this product are practically limitless, as theoretically any human-to-human business transaction can be handled by a well-trained generative AI model. While there is some debate about whether all these interactions should be automated, that's the direction we're heading.

The biggest industry SoundHound AI has revolutionized is restaurants. SoundHound AI's software is being deployed around countless fast-food restaurants to automate the drive-thru experience. This potentially eliminates one role in an industry that already has slim margins, making it a no-brainer upgrade if the software functions properly. However, this is just the beginning of deployment.

The biggest industries SoundHound AI is working to tackle are financial services, insurance, and healthcare. All of these industries have countless customer service agents that a well-trained generative AI model could replace. If SoundHound AI can deliver that, then its stock is primed to shoot through the roof.

SoundHound AI is already signing new customers and expanding contracts with some massive players in these industries. This has led to SoundHound's revenue rising an impressive 59% year over year. While that's not the end game for SoundHound AI's stock, it shows it is moving in the right direction.

Because SoundHound AI isn't profitable, valuing the stock using the price-to-sales ratio is the best tool investors have. At 15 times sales, SoundHound AI's stock is well worth an investment at these prices, as it could be a bargain if the company delivers on its expectations to expand into these industries.

SOUN PS Ratio data by YCharts. PS Ratio = price-to-sales ratio.

While I'm not certain that SoundHound AI will be a long-term success story, it has the right product at the right time, trades for a fair price, and is already seeing success. This gives me confidence that SoundHound AI is worth an investment, as the payoff could be massive if their technology pans out.

Keithen Drury has positions in SoundHound AI. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.