We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
By now, the AI revolution is no secret to Wall Street. However, two under-the-radar, pure play AI stocks offer asymmetric reward-to-risk. In addition, these two up-and-comers have recently inked deals with AI juggernauts, offering a massive catalyst. Below are the two highest-impact AI partnerships:
BigBear.ai & Palantir
BigBear.ai and Palantir both offer decision intelligence solutions spanning national security, digital identity, supply chains and logistics, enterprise operations, and integration of manned-unmanned teaming within autonomous systems. On February 28th, BBAI and PLTR announced a strategic partnership combining AI-powered products with a next-generation operating platform. The partnership is a big deal for BBAI for two reasons:
1.) BBAI has a market cap of just $600 million, while PLTR has a market cap of $54 billion. With PLTR as a partner, BBAI has an opportunity to throw gasoline on their growth.
2.) PLTR is the undisputed leader in this niche space. If PLTR finds value in BBAI’s offering, it proves the quality of BBAI’s product suite. Also, PLTR may look to acquire the company down the line, should it be necessary.
Swing to Profitably
Nvidia and Super Micro Computer have proven how much demand there is for the AI industry. However, few pure plays exist, and even fewer profitable ones. Last quarter, BBAI posted its first profitable quarter as a public company.
Wall Street is Bullish
Zacks Consensus Estimates suggest healthy EPS growth of 64.21% in 20223.
BBAI is also gaining momentum from an EPS expectations perspective. Last quarter, BBAI beat analysts’ expectations by 142.86%.
Accumulation Patterns
On February 27, shares jumped 38% on volume 10x the norm! The news was not apparent, but such heavy volume and price momentum indicate massive accumulation. The stock also forms a bullish and potentially explosive high-tight flag pattern.
SoundHound AI & Nvidia
SOUN Overview
SoundHound is a technology company that specializes in audio and voice recognition. One of its prominent products is the SoundHound app, which allows users to identify songs by listening to a snippet of music. Users can hum, sing, or type lyrics into the app, and it provides information about the song title, artist, and album. SOUN’s technology extends beyond music identification, incorporating voice-enabled AI solutions for various applications, including voice-controlled virtual assistants and integration into smart devices.
Why is the NVDA Investment Impactful?
Until now, NVDA has been selling the “picks and shovels” to the AI revolution. However, NVDA’s first 13F filing shows the company stepped out of its wheelhouse to purchase nearly $4 million worth of SOUN, showing the company also has ambitions for AI pure plays. Also, now that NVDA has the third largest market cap in the U.S., the company has plenty of cash to add exposure to their investment down the line – likely to keep a bid under SOUN shares.
Bullish EPS Surprise History
Though SOUN has only been public since early 2022, the company has exhibited a strong tendency to beat Wall Street analysts’ expectations. SOUN has bested Zacks EPS Estimates in six of its first eight quarters.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: BigBear.ai, Palantir, Super Micro Computer, SoundHound and Nvidia
For Immediate Release
Chicago, IL – March 4, 2024 – Today, Zacks Investment Ideas feature highlights BigBear.ai (BBAI - Free Report) , Palantir (PLTR - Free Report) , Super Micro Computer (SMCI - Free Report) , SoundHound AI (SOUN - Free Report) and Nvidia (NVDA - Free Report) .
What Are Some of the Lesser-Known A.I. Plays?
By now, the AI revolution is no secret to Wall Street. However, two under-the-radar, pure play AI stocks offer asymmetric reward-to-risk. In addition, these two up-and-comers have recently inked deals with AI juggernauts, offering a massive catalyst. Below are the two highest-impact AI partnerships:
BigBear.ai & Palantir
BigBear.ai and Palantir both offer decision intelligence solutions spanning national security, digital identity, supply chains and logistics, enterprise operations, and integration of manned-unmanned teaming within autonomous systems. On February 28th, BBAI and PLTR announced a strategic partnership combining AI-powered products with a next-generation operating platform. The partnership is a big deal for BBAI for two reasons:
1.) BBAI has a market cap of just $600 million, while PLTR has a market cap of $54 billion. With PLTR as a partner, BBAI has an opportunity to throw gasoline on their growth.
2.) PLTR is the undisputed leader in this niche space. If PLTR finds value in BBAI’s offering, it proves the quality of BBAI’s product suite. Also, PLTR may look to acquire the company down the line, should it be necessary.
Swing to Profitably
Nvidia and Super Micro Computer have proven how much demand there is for the AI industry. However, few pure plays exist, and even fewer profitable ones. Last quarter, BBAI posted its first profitable quarter as a public company.
Wall Street is Bullish
Zacks Consensus Estimates suggest healthy EPS growth of 64.21% in 20223.
BBAI is also gaining momentum from an EPS expectations perspective. Last quarter, BBAI beat analysts’ expectations by 142.86%.
Accumulation Patterns
On February 27, shares jumped 38% on volume 10x the norm! The news was not apparent, but such heavy volume and price momentum indicate massive accumulation. The stock also forms a bullish and potentially explosive high-tight flag pattern.
SoundHound AI & Nvidia
SOUN Overview
SoundHound is a technology company that specializes in audio and voice recognition. One of its prominent products is the SoundHound app, which allows users to identify songs by listening to a snippet of music. Users can hum, sing, or type lyrics into the app, and it provides information about the song title, artist, and album. SOUN’s technology extends beyond music identification, incorporating voice-enabled AI solutions for various applications, including voice-controlled virtual assistants and integration into smart devices.
Why is the NVDA Investment Impactful?
Until now, NVDA has been selling the “picks and shovels” to the AI revolution. However, NVDA’s first 13F filing shows the company stepped out of its wheelhouse to purchase nearly $4 million worth of SOUN, showing the company also has ambitions for AI pure plays. Also, now that NVDA has the third largest market cap in the U.S., the company has plenty of cash to add exposure to their investment down the line – likely to keep a bid under SOUN shares.
Bullish EPS Surprise History
Though SOUN has only been public since early 2022, the company has exhibited a strong tendency to beat Wall Street analysts’ expectations. SOUN has bested Zacks EPS Estimates in six of its first eight quarters.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.