AI technology has come a long way in recent years, and the best is yet to come. The AI market is expected to grow rapidly, with an annual growth rate of nearly 20% through 2034. This growth presents exciting opportunities for investors. But where should they look? Let's dive into three companies that are making waves in the AI world.

First up, there's Arm Holdings. This company doesn't make chips; instead, it designs them and licenses those designs to other chipmakers. You might be using an Arm-based chip in your smartphone or computer right now without even knowing it. Arm's chip designs are known for their power efficiency, which is a big deal as AI platforms consume a lot of energy. With revenue expected to grow by about 20% per year for the next three years, Arm Holdings is a strong contender in the AI game.

Next, consider SoundHound AI. This company is all about making voice-based interactions work seamlessly. They've been developing their AI platform, Houndify, since 2015, and it's already being used by several automakers and credit card companies. The voice-based AI market is set to grow at an annual rate of nearly 35% through 2034, and SoundHound AI is well-positioned to capture a significant share of that growth. Their first-quarter revenue saw a staggering 151% year-over-year improvement, showing just how much potential this company has.

Lastly, there's BigBear. ai. This company focuses on AI-powered decision-making software, primarily for businesses rather than government institutions. Their target markets include manufacturing facilities, healthcare providers, and biopharma companies. The decision-making segment of the AI industry is expected to grow at an average annual pace of 16% through 2034. While BigBear. ai is not yet profitable and faces some risks due to its size, analysts have a consensus price target that's nearly twice the stock's current price. This could be a high-risk, high-reward opportunity for investors.

Investing in AI is all about spotting the trends and the companies that are set to benefit from them. Arm Holdings, SoundHound AI, and BigBear. ai are all playing significant roles in shaping the future of AI. While the AI market is booming, it's crucial to do your own research and consider the risks involved. The future of AI is bright, and these companies are leading the way.

The Future of AI: Three Smart Stock Picks

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