3 Millionaire-Maker Artificial Intelligence (AI) Stocks

Nvidia turned a $10,000 investment into $2.5 million over the past 10 years. That massive gain was largely driven by the rapid expansion of the artificial intelligence (AI) market, which drove many companies to ramp up their purchases of the company’s data center graphics processing units (GPUs) to process complex machine learning and AI applications.

Nvidia still has room to run, but it could be tough for this $2.9 trillion company to replicate those millionaire-making gains. Investors seeking bigger gains should take a closer look at smaller AI companies that have more upside potential.

These three small-cap AI stocks have a shot at generating millionaire-making gains over the next decade: SoundHound AI (SOUN 1.04%), Serve Robotics (SERV 3.46%), and Evolv Technologies (EVLV -0.24%).

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The voice recognition play: SoundHound AI

SoundHound AI develops audio and speech recognition tools. Its namesake app identifies songs by listening to a short clip or a few hummed bars, and its Houndify developer platform is used to create customized voice recognition tools that don’t feed data to a tech giant like Alphabet‘s Google.

Automakers like Hyundai, smart-TV makers like Vizio, and fast-food chains like Church’s Chicken already use Houndify to create voice recognition tools. Nvidia, which owns a small stake in SoundHound, also integrates Houndify’s services into its Drive platform for connected vehicles.

SoundHound went public by merging with a special purpose acquisition company (SPAC) in 2022 and subsequently expanded by acquiring the restaurant tech companies SYNQ3 and Allset. It took over the enterprise AI software company Amelia and partnered with the AI chatbot maker Perplexity to strengthen its own large language models (LLMs).

SoundHound’s revenue increased 47% in both 2022 and 2023. Analysts expect its revenue to rise at a compound annual growth rate (CAGR) of 82% from 2023 to 2025 as it continues to gain new customers and grow its ecosystem. It’s still deeply unprofitable and its stock isn’t cheap at 10-times next year’s sales, but it could evolve into a much larger company over the next few years as the AI-powered voice recognition market expands.

The automated-delivery play: Serve Robotics

Serve Robotics produces AI-powered autonomous sidewalk-delivery robots. It was originally a unit of Postmates, which was bought by Uber in 2020. Uber subsequently spun it off into a stand-alone company, and it went public via a reverse merger this April. Nvidia also acquired a 10% stake in the company earlier this year.

Serve’s main customer is still Uber Eats, and only 44 of its 100 active robots made daily deliveries across the L.A. area in the first half of 2024. But in 2025, it plans to ramp up its production and deploy up to 2,000 robots across the U.S. for Uber.

Serve’s long-term business model is still untested, barely generates any revenue, and is bleeding red ink. Its stock also looks pretty expensive at 23 times next year’s sales.

But analysts expect its revenue to grow from $1.6 million this year to $60 million in 2025. Also, it could still have a lot more room to run if the company successfully scales up its business, attracts more customers, and gradually replaces delivery drivers.

The AI-powered security play: Evolv Technologies

Evolv aims to replace traditional metal detectors with AI-powered screening systems that can scan people up to 10x faster. Its systems can also screen two people at a time, and they don’t need to empty their pockets, remove their bags, or even slow down.

Evolv went public via a reverse merger in 2021 and initially gained a lot of attention because it was backed by Bill Gates. It now serves over 800 major customers — including schools, hospitals, and major sports teams — and screens over 1 million people daily. It’s deployed more than 4,000 of its express units worldwide and detects over 500 guns every day. It stores and analyzes all of that data with its own cloud-based service.

Evolv’s systems are much more expensive than metal detectors, but the growing threat of mass shootings could make them necessary security tools. Evolv isn’t profitable yet, but its revenue surged 395% in 2021, 133% in 2022, and 46% in 2023. From 2023 to 2026, analysts expect its revenue to grow at a CAGR of 28%. Its stock still looks reasonably valued at 5 times next year’s sales, and could soar a lot higher as it replaces aging metal detectors across the world.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Nvidia, Serve Robotics, and Uber Technologies. The Motley Fool has a disclosure policy.