New technologies are exciting, but investors chasing the next big trend can get burned. Artificial intelligence (AI) might be the hottest thing on Wall Street in some time. Hype over its potential has played a significant role in driving the stock prices of many companies connected to the industry higher since last year -- among them, SoundHound AI, an AI company focused on audio technology.

I'm not saying that SoundHound AI won't succeed over the long term, but it's carrying a $1 billion market cap and did less than $50 million in revenue last year. Perhaps investors should look for AI companies that are more mature, with higher floors and enough potential to deliver outstanding returns -- companies, for example, like Palantir Technologies (NYSE: PLTR), Nvidia (NASDAQ: NVDA), and UiPath (NYSE: PATH).

AI may be a hot buzzword, but it's not an out-of-the-box technology. To make use of it, companies have to develop, train, and implement specific applications. That's where Palantir Technologies has a tremendous opportunity. The software company enables customers to build and deploy custom software applications, including AI, into their businesses via its Gotham, Foundry, and AIP platforms.

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Source Fool.com