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In 2024, the value of these three Artificial Intelligence (AI) stocks soared beyond fourfold. The favorite among Wall Street analysts currently is this single pick.

In the year 2024, these three Artificial Intelligence (AI) stocks witnessed a growth surpassing...
In the year 2024, these three Artificial Intelligence (AI) stocks witnessed a growth surpassing four times their initial value. Among these, Wall Street currently favors one stock the most.

In 2024, the value of these three Artificial Intelligence (AI) stocks soared beyond fourfold. The favorite among Wall Street analysts currently is this single pick.

The continued bull market in 2023 and 2024 was propelled by artificial intelligence (AI). Notably, the "Magnificent Seven" stocks leading the S&P 500's growth were heavily invested in AI. However, the real AI champions could be found beyond this group.

In 2024, the three AI stocks that saw astronomical gains were Palantir Technologies (PLTR), MicroStrategy (MSTR), and Soundhound AI (SOUN). Let's delve into their incredible runs.

📈 Palantir Technologies (PLTR) - 340% Gain

Palantir became one of the most hyped "Trump trades" last year. As a developer of AI and data analytics software, its primary customer is the U.S. government. The stock soared 340% due to Trump's prioritization of immigration enforcement, national security, and improving government agency efficiency.

The major catalysts for Palantir in 2024 were its inclusion in the S&P 500 and Nasdaq-100 indexes as well as investor expectations for increased sales with the Trump administration.

💥 MicroStrategy (MSTR) - 359% Gain

MicroStrategy, a firm offering AI-driven data analytics software, saw even more impressive gains, soaring 359%. This massive increase can be attributed to enthusiastic investors about MicroStrategy's software business and the company's Bitcoin strategy. MicroStrategy is the largest corporate holder of Bitcoin and uses it as its main treasury reserve asset.

🚀 Soundhound AI (SOUN) - 836% Gain

Outpacing both Palantir and MicroStrategy in terms of gains was voice AI software producer, Soundhound AI. Its shares skyrocketed 836% in 2024 following its Q3 results report, which showed an 89% year-over-year revenue increase to $25.1 million. Soundhound also achieved a significant diversification in its customer base, generating 12% of its Q3 revenue from its largest customer versus 72% in the prior year.

📅 What's in Store for 2025?

The question remains – will these streaks continue into 2025? Wall Street analysts have mixed opinions, flagging concerns over valuations and insufficient coverage.

For Palantir, its premium valuation and forward P/E ratio of around 143 are causing analysts to worry. As for Soundhound, while its progress in signing new customers is commendable, the lack of broad coverage and overall hype may keep gains moderate.

On the flip side, MicroStrategy benefits from Trump's crypto-friendly second term, making it the one AI stock analysts expect to excel in 2025, with a potential upside of around 42%.

Yet, it's essential to remember that Wall Street estimates are mere guesses, and no one can predict a stock's price even a year out. That being said, it's likely one of these AI stocks will continue its impressive run in 2025.

Sources:[1] SeekingAlpha & Yahoo Finance[2] MarketWatch & Yahoo Finance

In light of these extraordinary gains, investors are eagerly exploring opportunities in the AI sector for 2025. Given the tremendous success of Palantir, MicroStrategy, and Soundhound AI in 2024, it's reasonable to anticipate that finance will continue to play a significant role in investing in AI and related technologies.

As Wall Street analysts deliberate on the prospects of these AI stocks for the coming year, they are closely examining factors such as each company's valuation, market position, and strategic plans for future growth.

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