Generative AI was the biggest story of 2023 which caused AI stocks to boom. However, generative AI isn’t the only area of AI to be considered for investors. AI voice stocks are emerging as another growth area from which substantial returns could emerge.
That begs a question: what is the difference between generative AI and voice AI? AI voice refers to the ability of artificial intelligence to mimic natural human conversation and provide responses. Generative AI Is related to the creation of content, either text or images.
In 2024, investors have already seen that AI voice stocks are full of potential. Companies discussed below have moved higher as the technology has become more familiar to investors. The market is forecast to grow at a CAGR of nearly 24% between 2024 and 2032.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) is the hottest name in AI voice. The company exploded into prominence in mid-February when an Nvidia (NASDAQ:NVDA) filing showed that the firm owned 1.7 million shares of SOUN stock.
The stock can continue to grow due to multiple factors. The company’s connection to Nvidia is undoubtedly one of the bigger reasons to consider investing. SoundHound AI delivers AI voice services in certain car applications that use Nvidia’s Drive platform. Not only has Nvidia purchased a large stake of the company but it is also interfacing with SoundHound AI to create novel applications.
The other thing to note about SoundHound AI is that it is poised to dominate the AI voice restaurant sector. The company purchased SYNQ3 in November. SYNQ3 had 10,000 partnerships and 100,000 restaurants in its pipeline at that time. The acquisition consolidated SoundHound AI’s already strong position in the conversational AI sector.
LivePerson (LPSN)
LivePerson (NASDAQ:LPSN) is another voice AI stock that engages in similar business to SoundHound AI. The company has sold its cloud-based services to Leading firms including HSBC (NYSE:HSBC), Chipotle (NYSE:CMG), and Virgin Media Group.
LivePerson’s business includes services ranging from messaging all the way to cloud-enabled conversational AI.
However, the stock is not the clear winner that SoundHound AI is. LivePerson’s revenues fell by 22% in Q4 2023 to $95.5 million. SoundHound AI, on the other hand, saw its revenues grow by 80%.
That said, there is still plenty to like about LPSN stock. The company signed 62 deals within the quarter. Further, the reason revenues declined is that the company is refocusing its efforts on conversational AI.
In order to better capture that opportunity the firm decided to discontinue on several unrelated business lines.
LivePerson continues to have a base of assets oriented toward conversational AI. It’s also a relatively small company and the combination of those two factors means it could jump up quickly.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has emerged as a superstar firm on the merits of its generative AI capability. No one needs to be reminded of how that has fundamentally changed the value of its stock. Meanwhile, it’s also clear that Nvidia sees substantial value in the AI voice sector as well.
As mentioned above, the company has made a substantial investment in SoundHound AI in an effort to capture some of that potential. That partnership paired with all of the other strides NVDA has made in AI secure it as one of the best AI voice stocks on the market today.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.