Top Tech Stocks Under $50 to Watch
Investors often grapple with the term ‘cheap’ when navigating Wall Street, but it generally refers to stocks priced below $50. This article highlights two tech stocks that fit this criterion and the reasons investors may want to consider incorporating them into their portfolios.
SoundHound AI
First on the list is SoundHound AI (NASDAQ: SOUN), with share prices hovering around $21. Despite its affordability, its price-to-sales ratio (P/S) exceeds 75, which may indicate a relatively high valuation.
The demand for AI technology has surged, with major corporations like Microsoft, Amazon, and Meta Platforms investing heavily in developing AI capabilities. SoundHound AI plays a pivotal role by providing voice AI systems, facilitating customer interactions in sectors such as hospitality and navigation.
Although the company generated $67 million in revenue over the last year, it has yet to achieve profit. However, its revenue grew by an impressive 89% in the last quarter, attracting the attention of growth-focused investors.
IonQ
Another noteworthy stock is IonQ (NYSE: IONQ), currently trading at around $39. Similar to SoundHound, IonQ has less than $40 million in revenue and no profits, yet it stands out in the quantum computing arena.
Quantum computers, which utilize complex hardware logic, have the potential to revolutionize computing power. This technology has drawn interest from tech giants and investors alike. IonQ, among its competitors like Alphabet, is aiming to enable quantum computers to solve complex problems, although it currently faces significant technical challenges.
Investing Insights
Both stocks represent unique opportunities within the tech space, appealing to investors who are embracing AI and quantum advancements. While the investment landscape remains speculative, the ongoing development in these fields positions firms like SoundHound AI and IonQ for potential growth.
For those looking for affordable options in tech stocks, SoundHound and IonQ are worth monitoring as they navigate the evolving landscape of artificial intelligence and quantum computing.
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