The conversation around AI is getting louder, quite literally. Voice is, after all, our most natural interface. We’ve been barking commands at our phones and smart speakers for years, with mixed, and often hilarious, results. But the underlying technology is getting seriously good, and a few companies are positioning themselves to dominate this next frontier. It’s time we talked about AI voice recognition stocks, but not in the way you might think.
The New Gold Rush Isn’t a Chatbot, It’s a Conversation
Before we dive into specific companies, let’s set the stage. The global AI market isn’t just growing; it’s exploding. Projections, like those cited by analysts at The Motley Fool, suggest a staggering 37% annual growth rate through 2031. This isn’t just about one or two clever applications; it’s about a fundamental rewiring of our digital infrastructure.
At the heart of voice technology is natural language processing (NLP), the branch of AI that gives machines the ability to understand and interpret human language. For years, NLP was the clunky, awkward teenager of the AI family. Now, it’s finally coming of age, enabling the sort of seamless enterprise AI solutions that companies have been dreaming of. This is the engine driving adoption across every sector imaginable, from your car to your doctor’s surgery.
So, where do you place your bets in a market moving this quickly? You could follow the herd, or you could look for the shrewder plays.
The Contenders: A Voice Specialist and a Plumber
Let’s analyse two rather different companies that, despite recent stock dips, tell a compelling story about where the value in AI is accumulating.
SoundHound AI (SOUN): The Quiet Voice in the Machine
First up is SoundHound AI. This isn’t some Johnny-come-lately trying to build a better Siri. SoundHound has been beavering away for years, building a platform specifically for voice AI. They’re not aiming to be the consumer-facing star; they’re aiming to be the voice inside other companies’ products. Think of them as the Intel Inside for voice.
They specialise in complex domains like automotive and hospitality, where a simple “play my 90s rock playlist” won’t cut it. Imagine a drive-through that can handle a complicated order from a family of five without a single human intervention, or a hotel room that anticipates your needs based on a casual conversation. That’s the game SoundHound is playing.
And the numbers are starting to look very interesting indeed. The company reported a 68% year-on-year revenue increase in its third quarter. But the real headline figure is its revenue backlog. This isn’t speculative fluff; it’s signed-and-sealed business that will be recognised as revenue in the coming years. At last count, that backlog stood at a handsome $1.2 billion.
A backlog is like a restaurant having its tables booked solid for the next six months. It gives you a powerful indication of future demand and stability, which is a rare and beautiful thing in the volatile world of tech stocks. With a total addressable market they estimate at around $140 billion, they’ve got plenty of room to grow. The question is, can they convert that backlog efficiently and fend off the giants who will inevitably want a piece of their pie?
Vertiv Holdings (VRT): Selling Shovels in the AI Gold Rush
Now for the complete opposite play: Vertiv Holdings. If SoundHound is the specialist artist, Vertiv is the gruff but indispensable plumber. They don’t create AI, they make AI possible. How? By building the boring-but-critical infrastructure that data centres rely on.
This is my favourite kind of strategic play. During a gold rush, the surest money is often made not by the prospectors, but by the people selling the picks, shovels, and denim trousers. In the 21st-century AI gold rush, the picks and shovels are power management systems, cooling solutions, and racks for servers. That’s Vertiv’s entire business.
Every single AI model, from the one generating this text to the voice inside a Mercedes, runs on thousands of power-hungry processors housed in vast data centres. As demand for AI soars, the demand for building and outfitting these digital factories goes through the roof.
Look no further than Nvidia, the undisputed king of AI chips. Nvidia’s own forecasts predict a 40% annualised growth in data centre spending right through to 2030. That spending flows directly to companies like Vertiv. And again, the backlog tells the story. Vertiv is sitting on a massive $9.5 billion order backlog, up 30% from the previous year, with AI-related orders surging by an incredible 60%. They are, quite simply, building the physical foundation of the AI revolution.
Beyond the Usual Suspects: The Untapped World of Audio AI
It’s easy to get fixated on voice assistants, but the potential for audio AI applications is far, far broader. This technology is quietly becoming a cornerstone of modern industry.
– In Healthcare: AI is being used to transcribe doctor-patient consultations in real-time, freeing up clinicians from hours of administrative work.
– In Security: Sophisticated microphones can detect the specific acoustic signature of a gunshot or breaking glass, instantly alerting authorities.
– In Manufacturing: AI can listen to the hum of a factory machine and predict a mechanical failure before it happens, saving millions in downtime.
These are not futuristic fantasies; they are practical, high-value enterprise AI solutions being deployed today. This diversification of applications suggests a robust and resilient market, one that isn’t dependent on a single hit product.
So, Should You Invest? A Word of Caution
Before you rush off to your trading app, a dose of reality is required. Both SoundHound and Vertiv, like many AI voice recognition stocks, have seen their share prices on a rollercoaster. High-growth sectors are notoriously volatile, and valuations can often get ahead of themselves.
It is crucial to look beyond the hype and analyse the fundamentals. Look at the revenue growth, certainly, but pay even more attention to those backlogs. They represent a tangible pipeline of future business that is much harder to fake than a soaring stock price. The market is just beginning to understand that the AI boom has many layers, and the most obvious ones aren’t always the most profitable.
The long-term outlook seems undeniably strong. The demand for both specialised AI services and the underlying infrastructure is not a fleeting trend. But the path will be bumpy.
Ultimately, the rise of voice and audio AI represents a profound shift in how we interact with technology. It’s becoming an ambient, ever-present layer in our world. As an investor, the key question is figuring out where the enduring value will be captured. Will it be with the brands that own the customer relationship, or with the specialist companies providing the intelligence, or perhaps with the silent partners building the foundations?
What do you think? Is the shrewdest investment in the AI itself, or in the essential, unglamorous infrastructure that powers it all?
