SoundHound AI has been red-hot on the stock market in 2024, with stunning gains of 288% so far. Investors have been buying shares of this voice artificial intelligence (AI) solutions provider hand over fist based on the belief that it could become the next big AI play.

The company's revenue has been growing at an impressive pace, and it also boasts of a solid pipeline that could help it sustain its red-hot growth in the future. What's more, SoundHound AI stock has got a vote of confidence from AI pioneer Nvidia (NASDAQ: NVDA), which has a small stake in the company. This is a big reason why shares of SoundHound have simply taken off in the past month or so.

However, investors looking to buy an AI stock right now may not be comfortable paying 42 times sales for SoundHound, which is way higher than the tech sector's average of 7.1. Of course, it may become a key player in the AI market in the long run, but SoundHound AI is currently quite small, and is far from being profitable. Instead, investors would do well to buy shares of the following two established AI companies, which appear to be undervalued.

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Source Fool.com