Better Artificial Intelligence Stock: Nvidia vs. SoundHound

Both SoundHound (NASDAQ: SOUN) and Nvidia (NASDAQ: NVDA) are direct beneficiaries of AI. One produces the chips necessary to make our AI future possible. The other developed its own proprietary AI platform that could power everything from cars to drive-through windows.

If you want to bet on AI, it would make sense to buy stock in both companies. But some serious differences should guide your investment strategy.

If you want maximum growth potential, the clear choice is SoundHound. The math isn't complicated. SoundHound's market cap is currently around $1.3 billion. Nvidia's valuation, meanwhile, is closer to $3 trillion. Simply due to size, SoundHound stock has a much better chance of rising another 1,000% than Nvidia. For its stock to rise 10 times in value, Nvidia would need to add more value than , Meta Platforms, Apple, and Amazon combined -- and then some. SoundHound, meanwhile, would only need to add 0.3% of Nvidia's current value.

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Source Fool.com