Investors seeking high returns should consider companies in rapidly growing industries. Early investments in such firms often lead to substantial gains. Here are two stocks with the potential to increase their share prices by ten times in the coming years.
1. SoundHound AI
SoundHound AI (NASDAQ: SOUN) has seen its stock price rise by 342% since the end of 2023, driven by strong demand for its AI-powered conversational voice technology. The company’s revenue more than doubled year over year in the first quarter, boosted by its acquisition of Amelia, which expanded its AI services into sectors like retail and healthcare.
SoundHound’s technology is widely used in restaurants and in-car systems, two markets that are growing rapidly as AI capabilities improve. In the first quarter alone, over 1,000 new restaurant locations adopted SoundHound’s voice AI, a tenfold increase from the previous year.
Despite this growth, the company reported a non-GAAP loss of $22 million on $29 million in revenue for the quarter. However, SoundHound’s revenue streams—from product royalties, subscriptions, and ads—show promise for future profitability. The company also benefits from proprietary AI technology developed over 20 years and holds a strong balance sheet with $246 million in cash and no debt.
The AI voice generator market is expected to grow from $3 billion in 2024 to over $20 billion by 2030. For SoundHound to deliver a 10x return, its market capitalization would need to grow from $3.76 billion to $37.6 billion within a decade—a feasible target given its rapid expansion and the growing AI integration across industries.
2. Duolingo
Duolingo (NASDAQ: DUOL) leads the online language learning market, with 130 million monthly active users in Q1, a 33% increase year over year. The app’s daily active users rose 49% to 46.6 million. Duolingo’s freemium model, with over 10 million paying subscribers, generated $230 million in revenue last quarter, up 38% year over year, along with a $35 million profit.
The online language learning market is projected to grow at 21% annually through 2030, reaching $44 billion. AI enhancements, such as Duolingo’s Max subscription service, are expected to fuel this growth. The company is also expanding into other educational areas like math, music, and chess, broadening its long-term growth potential.
Currently valued at $21.8 billion, Duolingo would need to reach a $210 billion market cap to provide a 10x return. This requires sustained annual revenue growth of 25% and maintaining its current valuation multiples. Given its strong revenue growth and content expansion, Duolingo is well-positioned to outperform the market.
Both SoundHound AI and Duolingo operate in fast-growing markets driven by AI innovation. Their strong growth trajectories and expanding user bases make them compelling candidates for investors seeking substantial long-term gains.
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