2 AI Stocks to Buy Before They Soar 37% and 108%, According to Wall Street Analysts

Artificial intelligence (AI) stocks have been big winners on the stock market in recent years, which isn't surprising, as the fast-growing adoption of this technology has accelerated the growth of several companies.

The good news is that AI adoption isn't going to slow down anytime soon. According to one estimate, the global AI market could clock an annual growth rate of 31% through 2033, generating almost $3.5 trillion in revenue by the end of the forecast period. As such, top AI stocks remain worth buying even now, which is why we are going to take a closer look at the prospects of Nvidia (NASDAQ: NVDA) and SoundHound AI (NASDAQ: SOUN).

Analysts expect these two stocks to deliver healthy gains in the coming year. Let's see why that's the case.

Image source: Nvidia.

Nvidia's terrific growth potential and valuation point toward more upside

Nvidia has been one of the biggest beneficiaries of the AI revolution in recent years, becoming the world's biggest company on the back of robust demand for its chips that power AI workloads in data centers. The good part is that the stock still has room to run higher, according to analysts.

The stock has a median 12-month price target of $250, according to 74 analysts covering it, suggesting a potential jump of 37% from current levels. It is worth noting that 91% of the analysts covering Nvidia rate it as a buy. That's not surprising, as Nvidia remains the top player in the AI chip market even after all these years.

It commands an impressive 81% of the AI chip market, putting it in a solid position to make the most of the huge investments in AI data centers this year. The top four U.S. hyperscalers are poised to spend a whopping $700 billion as capital expenditures in 2026 to build more data centers. Given that 60% of spending on AI data centers is allocated to chips and other computing hardware, according to McKinsey, Nvidia is looking at a huge addressable opportunity to grow its data center business once again this year.

This probably explains why analysts expect another year of terrific growth from Nvidia.

Data by YCharts.

The company is estimated to have clocked a 57% increase in earnings in the recently concluded fiscal 2026 to $4.69 per share. The chart above shows that the growth rate is poised to improve in fiscal 2027. Nvidia's massive order book and the launch of its Vera Rubin AI processors later this year should play a central role in helping it corner a significant share of the huge AI data center spending, paving the way for potentially stronger growth.

Throw in the fact that Nvidia stock trades at 24 times forward earnings right now, a slight discount to the tech-focused Nasdaq-100 index's forward earnings multiple of 25, and it becomes evident that investors are getting a good deal on this chip designer. Nvidia seems worth buying hand over fist right now since it is poised to increase its earnings at a faster pace than the broader market once again this year, which should be enough for the stock to hit, or even exceed, Wall Street's price target.

SoundHound AI stock is expected to soar big time

SoundHound AI is another fast-growing AI company that's benefiting from the productivity gains its voice AI solutions deliver for customers. The company will release its fourth-quarter 2025 results later this month, and its guidance of $165 million to $180 million in revenue suggests that its top line is on track to double from the prior-year period's reading of $85 million.

However, the stock has been under pressure despite its solid growth, losing 55% of its value over the past six months. As a result, the stock can be bought at 20 times sales right now. While that may seem expensive at first, investors should note that SoundHound's outstanding growth and prospects justify the valuation.

The company is growing faster than the voice AI market, which is estimated to clock an annual growth rate of 24% through 2030 and generate $41 billion in revenue by the end of the decade. SoundHound AI's growth rate indicates that it is becoming a bigger player in this market, driven by a big and diverse customer base.

Moreover, the company reported last year that it had a potential revenue backlog of $1.2 billion. That's big enough for SoundHound to easily surpass Wall Street's growth expectations going forward.

Data by YCharts.

Not surprisingly, analysts are bullish about SoundHound stock's prospects, with its 12-month median price target of $15.50 indicating potential upside of 108%. Additionally, seven of the nine analysts covering SoundHound rate it as a buy.

There is a good chance this AI stock regains its mojo when it reports results on Feb. 26, driven by stronger-than-expected growth and guidance. That's why it would be a good idea to buy SoundHound stock while it is beaten down, as it could indeed live up to analysts' expectations and skyrocket in the future.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and SoundHound AI. The Motley Fool has a disclosure policy.