3 Artificial Intelligence (AI) Stocks That Could Soar More Than Nvidia, According to Wall Street

Nvidia's (NVDA 6.18%) spectacular performance so far in 2023 could have a second act. Analysts forecast that the stock could vault more than 50% higher over the next 12 months. 

There's no secret behind this optimism. The demand for Nvidia's graphics processing units (GPUs) continues to surge thanks to the ongoing frenzy to develop artificial intelligence (AI) apps. 

This AI boom isn't limited to Nvidia. These three AI stocks could soar even more than Nvidia, according to Wall Street.

1. SoundHound AI

Only three analysts surveyed by Refinitiv in August cover SoundHound AI (SOUN 5.77%). However, they're all enthusiastic about the stock. The average 12-month price target for SoundHound AI reflects an upside potential of more than 160%.

Such an upbeat outlook might seem to be suspect considering the roller coaster ride that SoundHound has taken investors on so far this year. But Wall Street appears to be convinced that the company's voice AI technology will attract more business going forward. 

SoundHound agrees that will be the case. The company reported 42% year-over-year revenue growth in the second quarter of 2023. It projects that full-year revenue will jump by close to 50%, based on the midpoint of the guidance range.

The company continues to make further inroads into two industries, especially -- auto manufacturing and restaurants. SoundHound's automotive customers include Honda, Hyundai, and Stellantis. Its restaurant customers include Oracle Food and Beverage, Beef O'Brady's, and White Castle. 

2. Schrodinger

Wall Street is also bullish about Schrodinger (SDGR 2.70%). The average 12-month price target among the nine analysts surveyed by Refinitiv last month is nearly 90% higher than the stock's current price. 

Those analysts aren't the only fans of Schrodinger. Cathie Wood's Ark Genomic Revolution ETF owns the stock. So does the Bill & Melinda Gates Foundation Trust.   

Why is Schrodinger so popular? The company is using AI to improve the drug discovery process. Schrodinger's platform can quickly identify the most promising molecules to advance into testing, reducing the cost of developing new drugs. 

Schrodinger has two programs of its own in clinical testing with more potentially on the way. It's also collaborating with several big drugmakers, including Bristol Myers Squibb and Eli Lilly. 

3. Symbotic

Symbotic (SYM 1.62%) ranks as one of the biggest AI winners of 2023 with its shares skyrocketing nearly 160%. It's also highly regarded on Wall Street. The average price target for the stock reflects an upside potential of close to 80%. 

Managing warehouses has become increasingly complicated with more product types and faster delivery requirements. Symbotic uses AI-powered robotic technology to reinvent how warehouses operate. 

Walmart ranks as Symbotic's biggest customer by far and owns a stake in the company. Large supermarket chain Albertsons, major wholesale grocery distributor C&S Wholesale Grocers, and Target also use Symbotic's warehouse automation technology. 

In July 2023, Symbotic announced a joint venture with SoftBank to go after the $500 billion-plus warehouse-as-a-service market. As part of the deal, the joint venture company (GreenBox Systems) will pay Symbotic around $7.5 billion over a six-year period to use its technology platform. 

Follow Wall Street's lead?

Should you follow Wall Street's lead and buy these three AI stocks? Maybe, maybe not.

Risk-averse investors will probably be better off looking elsewhere. None of these three companies are profitable at this point. Schrodinger, in particular, faces significant risks that the drugs it discovers won't pan out.

However, aggressive investors could like all three of these stocks. There's no guarantee that they'll deliver the kinds of returns that analysts envision. But they all have great AI technology and are targeting promising markets. SoundHound AI, Schrodinger, and Symbotic just might outperform Nvidia going forward.