The artificial intelligence sector continues to draw significant investor attention, marked by both growth and volatility across various companies. SoundHound AI, a leader in conversational AI, saw its stock increase by 2.1 percent on Friday, following a recent pullback despite a strong 2024 performance. The company's Houndify platform and a partnership with NVIDIA for its DRIVE platform in self-driving cars highlight its innovative strides, though analysts remain divided on its current investment appeal. Major tech giants are also making substantial moves in AI. Amazon, often considered an underrated AI stock, is heavily investing in AI infrastructure and data centers, impacting its free cash flow. Amazon Web Services (AWS) continues to show strong growth and high profits, and the company is developing its own AI chips to lessen its dependence on Nvidia. These strategic investments position Amazon for significant gains by 2026, alongside Alphabet (Google's parent company) and Microsoft, which are also recognized as strong long-term AI investments due to their resilience, extensive cloud services, and AI capabilities. Beyond these established players, emerging AI companies are securing crucial funding. Arrowhead, a voice AI startup from Bengaluru, recently secured $3 million in seed funding, led by Stellaris Venture Partners. Arrowhead develops human-like AI agents for financial sales, already deployed in India and Southeast Asia, with plans to enhance its AI models and expand its market reach. Meanwhile, Datavault AI Inc. experienced an 8.22 percent stock drop on Tuesday, January 6, 2026, despite reporting approximately $2.7 million in revenue and an improved cash flow, with its low price-to-earnings ratio suggesting potential undervaluation. The broader AI investment landscape extends beyond software and chips to critical infrastructure. Companies like Modine Manufacturing, specializing in liquid cooling systems for AI chips, Arista Networks for networking, and Dell Technologies for AI server racks are becoming increasingly vital. Independent power producers such as Vistra Energy are also crucial, as the demand for electricity to power AI data centers surges. While large companies like Microsoft and Google are often the biggest AI winners, individual investors face higher risks when identifying promising startups, making careful research essential. Newrez LLC, a mortgage lender, is also leveraging AI by investing in HomeVision to automate mortgage underwriting, aiming for faster approvals and increased efficiency.
Key Takeaways
- SoundHound AI stock saw a 2.1% increase on Friday, but remains volatile despite its NVIDIA partnership for self-driving cars.
- Amazon is heavily investing in AI infrastructure and developing its own AI chips to reduce reliance on Nvidia, positioning for strong growth by 2026.
- Amazon Web Services (AWS) is a key driver of Amazon's AI strategy, showing strong growth and high profits.
- Alphabet (Google) and Microsoft are considered strong long-term AI investments due to their established market positions and extensive AI capabilities.
- Arrowhead, a voice AI startup, secured $3 million in seed funding to develop human-like AI agents for financial sales in India and Southeast Asia.
- Datavault AI Inc. reported approximately $2.7 million in revenue, though its stock recently dropped 8.22 percent on January 6, 2026.
- Investing in AI infrastructure, such as liquid cooling (Modine Manufacturing), networking (Arista Networks), and power generation (Vistra Energy), presents significant opportunities beyond just chips and software.
- Individual investors face higher risks in identifying promising AI startups, with experts suggesting established tech giants like Microsoft, Google, Amazon, and Nvidia as potentially safer bets.
- Newrez LLC is adopting AI-powered mortgage underwriting through an investment in HomeVision, aiming to double efficiency and speed up approvals.
SoundHound AI Stock Jumps 2.1 Percent
SoundHound AI stock (NASDAQ:SOUN) increased by 2.1 percent on Friday. This artificial intelligence company specializes in voice AI and conversational intelligence. Its technology is used in smart devices, automotive systems, and customer service platforms. Investors are closely watching SoundHound AI as the AI sector continues to grow rapidly.
SoundHound AI Stock Pullback Sparks Investor Interest
SoundHound AI (SOUN) stock recently pulled back after a strong performance in 2024. The company is a leader in conversational artificial intelligence and offers its Houndify platform for custom voice applications. SoundHound AI has announced new partnerships, including one with NVIDIA for its DRIVE platform in self-driving cars. Despite positive news, the stock has been volatile, and analysts are divided on whether it is a good time to buy.
Amazon Stock Poised for Big AI Gains in 2026
Amazon is considered an underrated artificial intelligence stock with strong potential for 2026. The company is investing heavily in AI infrastructure and data centers, which impacts its free cash flow. While its e-commerce business has lower profit margins, Amazon Web Services (AWS) shows strong growth and high profits. Amazon is also developing its own AI chips to reduce its reliance on Nvidia. These strategic moves could lead to significant growth for Amazon shareholders in the coming year.
Amazon Could Be a Top AI Stock Pick for 2026
Amazon is seen as a potentially underrated artificial intelligence stock with strong potential for 2026. The company is investing heavily in AI infrastructure and data centers, which impacts its free cash flow. While its e-commerce business has lower profit margins, Amazon Web Services (AWS) shows strong growth and high profits. Amazon is also developing its own AI chips to reduce its reliance on Nvidia. These investments aim to strengthen its cloud computing position and create new income streams.
Emerging AI Stocks Offer Greater Growth Than Vertiv
Vertiv stock (VRT) has grown by 1,100 percent over five years due to its role in data center infrastructure. However, investors seeking even higher returns should consider smaller, emerging artificial intelligence companies. These AI firms develop groundbreaking solutions in areas like machine learning and computer vision. While they carry higher risk, their smaller size means even small successes can lead to huge stock price increases. Investors should research companies with strong teams, innovative technology, and clear paths to profit.
Top Three AI Stocks for Long Term Investment
Three major companies, Alphabet, Amazon, and Microsoft, are highlighted as strong artificial intelligence stocks to hold for the next decade. Alphabet, Google's parent company, has shown great resilience and continues to grow with strong revenue and profits. Amazon is deeply integrated into daily life through e-commerce and AWS, and it plans to expand into new areas like satellite internet and personal robots. Microsoft has successfully adapted to technological changes, offering essential software, cloud services, and AI capabilities to businesses worldwide. These companies are expected to remain leaders in the evolving AI market.
Arrowhead Secures $3 Million to Boost AI Sales
Arrowhead, a voice AI startup from Bengaluru, received $3 million in seed funding led by Stellaris Venture Partners. The company, founded by Devyani Gupta and Vengadanathan Srinivasan, creates human-like AI agents for financial sales. These agents handle complex conversations, mimic top sales talent, and help banks and fintechs improve sales. Arrowhead's technology is already being used in India and Southeast Asia. The new funds will help improve its AI models, expand its team, and grow its reach in the Southeast Asian market.
Datavault AI Stock Moves Amid Market Interest
Datavault AI Inc. stock (NASDAQ: DVLT) dropped by 8.22 percent on Tuesday, January 6, 2026. Despite this recent dip, the stock has shown a fluctuating but optimistic trend, climbing from $0.5175 in late December 2025 to $1.305. The company has a revenue of about $2.7 million and improved cash flow, though its ebit margin is negative. Datavault AI's low price-to-earnings ratio of 0.7 suggests it might be undervalued. Investor interest in AI innovations continues to drive curiosity around DVLT's performance.
AI Could Be a Money Pit for Individual Investors
Investing in artificial intelligence can be risky for individual investors, according to experts. The biggest winners in AI are often large companies like Microsoft and Google, which already invest billions in AI research and have vast customer bases. Other successful companies provide essential infrastructure and tools, such as Nvidia with GPUs and Amazon with cloud services. It is challenging for individual investors to identify promising AI startups early, as many are private or have high valuations. Investors should research carefully and consider sticking with established tech giants already heavily invested in AI.
Newrez Bets on AI for Faster Mortgage Approvals
Newrez LLC, a top mortgage lender and servicer, invested in HomeVision to boost its AI-powered mortgage underwriting. Newrez already uses HomeVision's MIRA platform for collateral evaluation, doubling efficiency in that area. They plan to expand this AI to analyze income, assets, and credit, creating a full automated underwriting system. This move aims to lower costs, improve accuracy, and make the mortgage process faster for customers. Newrez services over $878 billion in mortgages and is a subsidiary of Rithm Capital Corp.
Look Beyond Chips for Hidden AI Investments
The growth of artificial intelligence is creating overlooked investment opportunities beyond just AI chips and software. Experts suggest focusing on physical infrastructure and electricity, which are crucial for powering AI data centers. Companies like Modine Manufacturing, a 100-year-old firm, now specialize in liquid cooling systems for hot AI chips. Other key players include Arista Networks for networking and Dell Technologies for AI server racks. Independent power producers like Vistra Energy are also vital, as electricity is becoming as important as oil in the AI economy.
Sources
- SoundHound AI (NASDAQ:SOUN) Trading 2.1% Higher
- Is SoundHound AI stock a buy now?
- This Might Be the Most Underrated Artificial Intelligence Stock to Own in 2026
- This Might Be the Most Underrated Artificial Intelligence Stock to Own in 2026
- Forget Vertiv stock and look at this AI stock instead
- 3 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade
- Arrowhead Secures $3 Million Seed Funding to Scale Human-Like Voice AI for Financial Sales
- Datavault AI Stock: Worth a Look?
- AI Could Be a Money Pit for Individual Investors
- Newrez places a bet on AI with HomeVision investment
- The hidden AI investments most people are missing
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