Boosted by the AI craze, it’s been a vintage year for tech stocks, but the summer season is proving to be a bit shakier so far. Since mid-July, the trend has been down, with the tech-heavy NASDAQ shedding ~5%.
This naturally raises the question: should we be ringing the alarm bells due to this shift?
Not at all, says Wedbush’s Daniel Ives, a 5-star analyst rated in the top 2% of the Street’s stock pros. Ives believes that the new bull market is simply taking a breather, and he asserts that the pullback will be short-lived. There have been ample indications during this earnings season that the overall trend is upward.
“The last few weeks June earnings season for the tech sector has revealed a number of dynamics now happening among enterprise and consumer spending globally, which we expect ultimately will push tech stocks higher despite this near-term pullback,” the top analyst explained. “We firmly stick with our bullish call that a 12%-15%+ in tech stocks will be in the cards heading into year-end as the new tech bull market has begun in our opinion.”
Against this backdrop, Ives has pinpointed an opportunity in two AI-driven tech stocks that he thinks are ready to make the most of this bull market, with one boasting a whopping 260% upside potential. We ran the pair through the TipRanks database to find out what other Street analysts have to say too. Let’s check the results.
SoundHound AI (SOUN)
The AI revolution is one that fits our first Ives-endorsed name to a tee. SoundHound AI is a leader in voice and audio recognition, employing advanced machine learning and natural language processing techniques to enable seamless and intuitive interactions with audio content. SoundHound AI is renowned for its exceptional music recognition capabilities, allowing users to identify songs by simply humming, singing, or even describing a few lyrics.
In addition to its music recognition prowess, SoundHound AI extends its capabilities to voice assistants and smart devices, allowing users to interact with technology through voice commands and natural language. Its…