Investors Eye Smaller Tech Stocks Following Nvidia’s Dominance

The report highlights promising tech companies like SoundHound AI, SentinelOne, and AppLovin positioning for growth, potentially impacting stock prices. With impressive innovations and strategic deals, these companies may attract investor interest amid Nvidia's historical performance.

Date: 23-09-2024

AI Rating: 7

The report emphasizes several smaller tech stocks that investors might consider after Nvidia's success. Here's a breakdown of the main points affecting potential stock prices:

SoundHound AI (NASDAQ: SOUN)

SoundHound has garnered attention partly due to Nvidia's investment in the company. It utilizes advanced AI voice technology, which has found traction in various sectors, including automotive and restaurant industries. The recent acquisition of Amelia, a generative AI platform, indicates SoundHound's intention to expand into healthcare, retail finance, and insurance. Despite being a speculative investment, its growth trajectory in AI voice technology could lead to significant returns for investors.

SentinelOne (NYSE: S)

SentinelOne specializes in cybersecurity, providing endpoint protection through its Singularity Platform. The report notes its rapid revenue growth, reported at 33% year-over-year in Q2, which strengthens its position in a booming market. Additionally, a new multi-year deal with Lenovo for endpoint security offers substantial growth potential. Given these developments, SentinelOne's stock is regarded as a potential millionaire-maker, especially after benefiting from vulnerabilities exposed by a competitor.

AppLovin (NASDAQ: APP)

AppLovin has gained significantly from the AI revolution, with its new Axon 2 AI-enhanced advertising solution driving substantial revenue growth—75% in Q2. While the company’s focused on mobile gaming, its ability to expand beyond this niche could further boost growth potential. Trading at a reasonable forward P/E ratio of 24.5 and an attractive PEG ratio, AppLovin appears undervalued, presenting an appealing opportunity for investors.

Potential Impact on Stock Prices

Investors may respond favorably to reports of strategic acquisitions, partnerships, and impressive revenue growth rates. These factors could lead to upward momentum in the stock prices of SoundHound AI, SentinelOne, and AppLovin, especially as they position themselves within growing sectors.

Stocks: NVDA SOUN S APP