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Forget Nvidia: Consider These 3 Millionaire-Maker Stocks to Buy Instead
APPApplovin(APP) The Motley Fool·2024-09-22 14:21

SoundHound AI - SoundHound AI employs an AI voice platform using speech-to-meaning and deep-meaning-understanding technologies to process speech in real time, understand intent, and respond to complex queries [2] - The company initially gained traction in the automotive industry, with several automakers using its technology for vehicle voice assistants, and has since expanded into the restaurant sector, partnering with operators and fintech companies like Toast and Olo [2] - SoundHound recently acquired Amelia, a conversational and generative AI platform, enabling it to enter industries such as healthcare, retail finance, and insurance, creating cross-selling and upselling opportunities [3] - If SoundHound becomes the standard in AI voice technology, it has the potential to be a high-growth stock [3] SentinelOne - SentinelOne specializes in endpoint security, protecting networks and devices like smartphones and computers through its AI-powered Singularity Platform, which monitors, predicts, and eliminates threats, and can "rewind" systems to pre-attack states [4] - The company is well-positioned to benefit from the global IT outage caused by CrowdStrike, as its smaller size allows it to capture market share without needing to displace the industry leader significantly [4] - SentinelOne recently secured a multiyear deal with Lenovo to provide endpoint security across new PCs and offer upgrades to existing Lenovo hardware, while also collaborating to build a new managed detection and response (MDR) service [5] - The company's revenue grew 33% year-over-year in Q2, and its forward price-to-sales ratio of 7.5 makes it a bargain compared to larger peers, with potential for significant growth [5] AppLovin - AppLovin has benefited significantly from the AI revolution, particularly after launching its Axon 2 AI-based advertising solution, which has driven a surge in software platform revenue [6] - Traditionally focused on mobile gaming, AppLovin's Axon 2 has attracted mobile app companies, leading to a 75% increase in software platform revenue in Q2, while rival Unity Software's ad business declined by 9% [6][7] - The company trades at a forward P/E ratio of 24.5 and a PEG ratio of 0.5, indicating it is undervalued, with potential for further growth if it extends its solution beyond the mobile gaming market [7] Industry Trends - The AI revolution continues to drive growth in tech companies, with smaller players like SoundHound AI, SentinelOne, and AppLovin showing significant potential to outperform larger competitors [1][6] - Cybersecurity remains a critical focus, with SentinelOne leveraging AI to address endpoint security and capitalize on industry disruptions [4][5] - The advertising and mobile app sectors are undergoing transformation, with AI-driven solutions like AppLovin's Axon 2 gaining market share at the expense of traditional players [6][7]