SOUN - 4 Top Stocks For The AI Revolution
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This year will be apivotal year for the future of AI, as researchers and enterprises seekto establish how this evolutionary leap in technology can be mostpractically integrated into our everyday lives.
With the growingpopularity of consumer generative AI programs like Google’s Bard andOpenAI’s ChatGPT, the generative AI market is poised to explode,growing to $1.3 trillion over the next 10 years from a market size ofjust $40 billion in 2022, according to a new report by BloombergIntelligence (BI).
For investors looking for unconventional opportunities in AIwith the potential for long-term growth, one company that stands outis SKYX Platforms Corp. (NASDAQ:SKYX).
The company is on anambitious mission to make homes and buildings smart, advanced, andsafe as the new standard by leveraging its proprietary patentedplatform technologies for smart home and electrical installations,including its new game-changing all-in-one smart home platformtechnology.
SKYX’s smart home game-changing technologies have won sevenCES awards (Consumer Electronic Shoe) in the past 12 months.
SKYX’s disruptivehigh-end all-in-one smart platform enables new and existing homes orbuildings to become smart instantly, while significantly simplifying,saving time-cost and lives.
This is possible for the first time in historythanks to the firm's patented technology called Sky Plug-Smart ,which is designed for “plug and play” installation ofweight-bearing electronics such as light fixtures, ceiling fans, andother electrical products. The plug fits into SKYX’s ceilingreceptacle, called the SKYreceptacle, which provides a novel way forhome and building owners to wire electrical outlets.
While it is notNvidia’s new AI chips, this is revolutionary, and its uniquelocation on the ceiling will maximize the performance of AI chipsamong other smart home integrated products and software.
Base on its safetyaspects for first time in 120 years, the definition of the electricalreceptacle was changed in the NEC Code Book to include the Sky CeilingReceptacle, and this could perhaps be the most significant addition tothe NEC Code in the past 40 years.
To put that in better context, consider this:Safety is a major area of concern when it comes to electrical andsmart home installation, and existing data shows that the wiring oflight fixtures and ceiling fans results in millions of hazardousannual installations. In fact, research conducted from 2015 to 2019 bythe National Fire Protection Association (NFPA) showed that lightingproducts accounted for 430 civilian deaths per year, not includingshocks and electrocutions, fires, and ladder falls.
The sky receptaclecreates a new electrical ceiling safety standard that limits potentialexposure to wires by cutting down on 80% of the time needed to touchwires during the first installation and completely eliminating theneed to touch outlet electrical wires after the first installation. Italso saves approximately 90% of the time on a ladder.
ANSI / NEMA (AmericanNational Standardization Institute / National Electrical ManufacturingAssociation), whose recent vote to approve Sky’s Ceiling ReceptacleSpecifications further reaffirms the product’s potential to become amajor disruption to the electrical installation industry.Additionally, the American Institute of Architects (AIA) voted toinclude SKYX in their annual mandatory continuing education systemscourse for 94,000 architect members as part of annual license renewaltraining.
Withall these professional bodies giving SKYX a nod of approval, it’seasy to see why its proprietary technology could become the newstandard for home and building electrical installation and alsoinstrumental in helping the company make inroads in AI.
The SkyPlug andReceptacle are the foundations that create a platform for all fixturetypes and integration possibilities. Think smoke and carbon monoxidedetectors, premium smart speakers, color-changing room ambiance andnight lights, emergency internet, house intercom features, and more.All these products can then be linked to the SkyHome application thatworks with both iPhones and Android phones to control features andspecifications of connected devices, such as scheduling andeco/energy-saving mode. It also integrates with AI home assistantsSiri, Alexa, Google Home, Samsung SmartThings, Cortana, andmore.
ParksAssociates research shows that in the US, internet households now ownan average of 16 connected devices, an increase from 13 connecteddevices in 2021, and SKYX is well positioned to benefit from thistrend. With this massive opportunity spanning every room, recentfigures put the TAM at $500 billion in the US alone. This explains whyGE Technology Development, Inc. ("GE") recently signed afive-year renewal global licensing master service agreement to licensecertain SKYX advanced and smart technologies in the U.S. andworldwide.
Mobileye Global Inc. (NASDAQ:MBLY) offers best-in-classtechnology for advanced driver-assistance systems (ADAS) and is likethe Nvidia of the automotive industry. The company controls nearly 70%of the world's advanced driver assistance system (ADAS) market,making it attract considerable attention from AI investors. Itssystems use cameras, sensors, and Mobileye's own EyeQ computervision chips to add assisted parking, single-lane cruising, and othersemi-autonomous features to cars. The newest "SuperVision"version of its system supports hands-free navigation capabilities andthe future development of fully autonomous vehicles.
Mobileye recentlyreleased the 4Q23 results with a number of interesting highlights. Theresults were mostly in line with prior guidance, as the top line grew13% from the prior year to $637 million, which was at the high end ofits preliminary revenue guidance, while total adjusted operatingincome came in at $247 million, or 38.8% margins, which was also atthe high end of its preliminary guidance of $241 million–$247million.
Unsurprisingly, SuperVision volumes in 4Q23 came in at 38,000units, up from 29,000 in 3Q23, but what perhaps stood out the most wasthat Mobileye managed to significantly diversify its revenues frompredominantly Chinese and electric vehicle customers to a wide rangeof OEMs in terms of geography.
SoundHound AI (NASDAQ:SOUN) initiallytargeted music recognition before leveraging its capabilities toexpand into adjacent verticals. The company now believes thatAI-driven customer service will be essential for every business in thefuture and that voice will be the primary means of interacting withdevices.
Tobetter illustrate this opportunity, a recent report revealed thatKlarna’s AI assistant was reportedly able to handle two-thirds ofcustomer queries in its first month, the equivalent of 700 full-timeagents, with preliminary estimates indicating that this could lead toa $40 million cost savings in 2024.
Taking the recent popularity of voice assistantswith conversational abilities into consideration, the company’sDecember acquisition of SYNQ3, a leading voice AI solutions providerin the restaurant industry, ties well with SoundHound’s long-term AIstrategy and should further drive revenue growth. Major companies inthe restaurant and automotive industries have already shown increasinginterest in SoundHound's artificial intelligence (AI) poweredvoice technology.
In fact, the company reported revenue growth of 80% year overyear in Q4 23, an acceleration over the previous quarter's 19%growth rate, while it posted a gross margin of 77% in the period, upfrom 71% in the prior-year period. Despite the recent pullback inSoundHound’s stock, the company's share price is still uproughly 183% in 2024 following soaring demand for the company's AIvoice solutions, in addition to the news that AI chip leader Nvidiamade a small investment in the company.
Nvidia (NASDAQ:NVDA) is the leadingmaker of chips that power one of the most important aspects in thefield of AI, which is deep learning. To effectively do this, speed iscrucial, and that's where Nvidia's chips come in. Thecompany's graphics processing units (GPUs) are the fastest on themarket by far, making them the preferred choice for the world'smajor technology companies that are building AI models. For example,earlier this month, Meta CEO Mark Zuckerberg told The Verge that Metawas building a huge stockpile of GPUs, with the company aiming toamass a total of 600,000 chips by the end of the year.
Elon Musk said thatTesla would spend more than $500 million on Nvidia AI chips alone in2024, and while that obviously looks like a large sum of money, it isonly equivalent to a $10,000 H100 system from Nvidia. Thanks to thisunbelievable GPU demand, Nvidia's growth has been phenomenal. Thecompany grew its revenue by an incredible 265% in Q4 to $22.1 billion,with Data Center revenue soaring 409% to $18.4 billion. Late lastmonth, Nvidia became the fifth publicly traded company to ever surpass$2 trillion in valuation, just nine months after it became the ninthto ever break $1 trillion.
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