Penny stocks are commonly known as stocks that trade below $5 per share, not necessarily under $1 per share. While many penny stocks may not become the next big thing like Amazon or Apple, some have the potential to grow into solid investments over time.
One such penny stock to watch is SoundHound AI (NASDAQ:SOUN), a company that provides AI-voice solutions for various applications such as speech recognition, text to speech, and music recognition. Despite not being profitable yet, SoundHound has seen rapid revenue growth and has a strong customer base in the tech, automobile, and restaurant industries. Analysts are bullish on SoundHound’s prospects, with a median price target of $8 per share.
Another promising penny stock is Joby Aviation (NYSE:JOBY), which is developing an all-electric vertical take-off and landing (VTOL) craft for use as an air taxi. Joby has secured contracts with the U.S. Air Force and plans to launch its air taxi service in New York in 2025. With a partnership with Delta Air Lines and FAA approvals pending, Joby is poised to be a key player in the emerging air-taxi industry. Analysts have set an $8 price target for Joby, representing a potential 61% increase from its current trading price of $4.96 per share.
Both SoundHound and Joby offer exciting opportunities for investors looking to capitalize on cutting-edge technologies in the AI-voice and air-taxi industries. While Joby may have a longer runway for growth, both stocks are worth keeping an eye on for their potential as leaders in their respective fields.