by Ian Cooper

Artificial intelligence (AI) stocks are exploding, as hoped.

For one, according to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030.

Two, according to Marketing AI Institute, “Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture. 

Three, investors can’t get enough of the ChatGPT craze. In fact, according to Economist,” Since ChatGPT was launched in November, a new mini-industry has mushroomed that has defied the broader slump in tech. Not a week goes by without someone unveiling a “generative” artificial intelligence (AI) underpinned by “foundation” models – the large and complex algorithms that give ChatGPT and other AIs like it their intelligence.

Four, the U.S. Chamber of Commerce just said, “virtually every business and government agency” will use AI, noting that it will have a “profound” impact on society, the economy, and national security,” as quoted by Seeking Alpha.

So, it comes as no surprise that some of the AI stocks we’ve spoken about are moving.

Nvidia (NVDA)

Nvidia is a no-brainer in the AI space. 

AI has been a strong catalyst for NVDA, too. CEO Jensen Huang told analysts that activity around Nvidia’s AI infrastructure “has gone through the roof” since the public debut of Open AI’s ChatGPT, as noted by MarketWatch.com.

Even Goldman Sachs upgraded NVDA to a buy rating on the accelerating AI story. “We believe the acceleration in AI development/adoption across cloud hyper scalers, as well as enterprises, will if anything, serve to extend the company’s leadership position as customers with any sense of urgency will lean on solutions that are scalable and available today.”  

Since we mentioned NVDA on March 15, it ran from about $235 to $401 – putting it well above our $300 target. We now believe NVDA could test $500 this year.

SoundHound AI (SOUN)

SoundHound develops conversational AI technology. Its goal is to allow humans to interact with technology as they would with their friends. Better, the company is working with the auto industry, integrating voice assistants into vehicles. The auto industry segment could be massive for SoundHound, with the company expecting 90% of new cars to have voice assistants.

SoundHound also has an impressive list of customers, including Qualcomm, Kia, Mercedes-Benz, Honda, Netflix, Pandora, Vizio, Motorola, MasterCard, Square, and many more. Far better, the company is projecting profitability this year.

Since mentioning SOUN on March 5, the stock ran from $3.10 to $3.28. While that’s nothing to write home about just yet, it’s quickly gaining momentum with other big AI stocks.

Advanced Micro Devices (AMD)

We also mentioned Advanced Micro Devices (AMD), as a top AI pick in early March. At the time, the stock traded at $96.60. Today, it’s up to $131.96 and racing higher. 

All as it rides the AI wave, and likely to take greater AI market shares from its competitors, according to Bank of America. Even better, Bank of America recently raised its price target on AMD to $120 from $105. Helping, Daniel Loeb’s Third Point LLC just bought a million shares of AMD, according to regulatory filings. Better, there’s news AMD will work with Microsoft to take on Nvidia’s current dominance with artificial intelligence.