2 AI Stocks Down Over 45% to Buy This March
The rise of artificial intelligence (AI) technology offers remarkable potential for investors. As productivity gains are anticipated to boost the global economy significantly, now may be the prime time to acquire stocks that are currently undervalued.
Despite previous highs, leading AI stocks have seen declines this year, creating attractive opportunities for long-term investors. Here are two stocks worth considering.
1. SoundHound AI
SoundHound AI (NASDAQ: SOUN) leads in voice assistant technology but has experienced a 49% drop year-to-date. This decrease followed news that Nvidia had sold its stake in SoundHound, which many believe was an overreaction. The partnership between SoundHound and Nvidia is thriving, focusing on AI solutions for vehicles, with significant visibility at high-profile tech events.
With a revenue growth nearly doubling in 2024, partially due to its acquisition of Amelia, SoundHound is expanding its market from vehicles and restaurants to retail and healthcare. Management has raised its 2025 revenue guidance significantly, indicating strong future prospects.
Trading at a price-to-sales ratio of 45 may seem expensive, but SoundHound’s potential market cap reflects its long-term promise, unlikely to remain at its current levels.
2. Dell Technologies
Dell Technologies (NYSE: DELL) is well-positioned to benefit from rising AI investments, with the global AI server market expected to reach $430 billion by 2033. The stock has fallen 46% from its peak, primarily due to trade conflict concerns affecting its supply chain. But Dell’s infrastructure solutions group, making up 46% of its revenue, continues to grow.
The recent deal with xAI has further bolstered Dell’s position, with its infrastructure solutions sector growing by 29% in 2024. Forecasting strong growth driven by server demand, Dell also remains competitive in the PC sector.
Importantly, Dell’s stock is trading at a low multiple, suggesting a promising return for investors who capitalize on its robust infrastructure growth.
Conclusion: Is This the Right Time to Invest?
For those pondering whether to invest $1,000 in SoundHound AI or Dell Technologies, it may be time to act while prices are attractive and the market presents opportunities.
