Three AI Stocks Beyond the Usual Suspects (IBM, PATH, SOUN)

The artificial intelligence (AI) landscape is rapidly evolving, bringing forth a new era of innovation and technological advancement. With the release of OpenAI's ChatGPT in November 2022, the adoption and awareness of AI technologies have skyrocketed, altering the way industries and individuals interact with automated software.

While Nvidia is revered as a significant contributor to the AI boom, there are other stocks worth keeping tabs of that are making waves in the industry.

IBM has emerged as a name to watch in AI innovation—a reputation solidified by its Watsonx generative AI platform. This powerhouse has resonated with enterprise clients across the globe, driving over $2 billion in generative AI orders. As investors and analysts anticipate the upcoming third-quarter report, there's a palpable expectation for IBM's continued strong performance, buoyed by its AI-driven growth.

Moving away from conventional software, UiPath revolutionises business operations through its specialization in robotic process automation (RPA). This technology automates repetitive tasks, thereby enhancing efficiency and cutting operational costs. Over the past two years, UiPath has witnessed a remarkable 32% increase in sales, transitioning from incurring cash losses to generating cash profits. This success underscores the company's ability to innovate and adapt in a market that is increasingly favoring AI enhancements.

SoundHound AI has been making waves with it's flagship product Houndify, a voice AI platform that allows developers to integrate voice recognition and understanding into their applications. Having gone public more recently than the others, (via IPO in April 2022) this is still a name that is developing, If you believe voice interfaces are the future of human-computer interaction, then SoundHound AI could be a good way to gain exposure to this trend with the deal flow already built into vehicles for one.

These three companies exemplify the broader potential and applicability of AI.

IBM, with its longstanding history in the technology sector, has continuously reinvented itself; its foray into AI with Watsonx reflects its adaptability and foresight. In the hands of enterprise clients, IBM's AI solutions spark transformative changes across diverse industries, from healthcare to finance.

On the other hand, UiPath's RPA technology embodies the modern shift towards workplace automation and efficiency. By combining its RPA solutions with AI capabilities, UiPath offers innovative systems that not only simplify but also reinvent workflow processes. This places UiPath at a strategic vantage point in the AI industry—as businesses seek to trim the fat and enhance productivity, UiPath stands ready with its advanced tech suite.

As generative AI continues to reshape the digital and economic landscapes, stocks like IBM, SoundHound AI, and UiPath present a an alternative take on the sector. They provide a counter-narrative to the narrative often dominated by hardware-centric companies like Nvidia.

These stocks showcase the thriving ecosystem of AI that extends into software solutions and innovative platforms that cater to a diverse clientele. Whilst these are just three firms making a place for themselves in this developing niche, there are plenty of others with a different take from the mega-caps that might warrant a look.