Tom Lee: “Why the S&P 500 Is Heading to 8,000” (2 AI Stocks To Buy before They Surge)

you will understand the forces driving the S&P 500 toward 8,000 after fund strats Tom Lee explained on CNBC last week that sideline cash is preparing to chase this market. This sudden shift in sentiment represents a critical turning point. I'll show you the clip of Tom Lee on CNBC uninterrupted and after that I'll give you my own reaction breakdown to what he said. After that, I'll give you an in-depth analysis of two AI stocks to buy before they surge. Let's hear what Tom Lee has to say. Let's welcome in our panel. CNBC contributor fund strats Tom Lee. Solus is Dan Greenhouse. We're all here at Post 9 as you can clearly see. Tom, it's good to have you. I'll start with you first. You say we could go 7,900 to 8,000 this month alone. So, this momentum is going to continue. Yeah, I think uh the a the deleveraging that happened a couple of weeks ago put a lot of cash on the sidelines got sentiment quite bearish and then on top of people getting very skeptical of the Fed got markets to derisk and now I think as earnings have been good and I think there's a rethink of how inflation might be cooler than expected and of course AI is still strong there's going to be a chase I think that chase takes us towards 7900 8,000 >> most people who are putting out bullish notes cite both of the facts that that you did this major deleveraging process which which was a reset for the market. There was no real fundamental change in in anything. It was just there was some froth that needed to be worked out. There was some leverage that got a little bit too high and all of that needed to be worked out. And then the backbone of the whole thing, the earnings. John Waldron of Goldman was talking about that just yesterday morning. >> Yeah. Uh that's exactly right. I mean, earnings this quarter is coming in more than $15 ahead of what people expect at the start of the quarter, but what's really more impressive is 2027 earnings are up now $8. So, we're probably close to 410 for 2027 earnings, and we're only 3 weeks into earning season. I I actually think it might settle out closer to $425 by the time earning season's over. >> Sound reasonable to you? And it's not just Tom, obviously. It's, you know, I've been hearing more 8,000 calls sort of, you know, day by day with Ed Yardi saying his 8250 could be conservative for the very reason that Tom just suggested. Earnings are just really good. >> Yeah. I mean, as we're seeing on the screen, the S&P is already at 7,700. So 8,000, no disrespect. I mean, it's not a huge lift to a percentage wise. >> I think the implication though is like that that's just the next stop in this train. >> Yeah. I mean cuz cuz the thing with the earnings is even if you X out technology and you subtract say 10 percentage points off the gross number earnings are still good and when you listen to as as many of us do any number of companies in any number of industries the AI almost all of them yeah the AI story is going well from Eaton and 3M and those adjacent companies. Uh you look at the charts of the KRE the BKX the financials are at highs the KIE the insurance companies are at highs. uh the commentary across the board from the card companies who I mention every quarter about consumer spending just fine. So you have all the investment themes going on, AI, power generation, etc., etc. The consumer is doing fine. Job's claims two weeks in a row, sub 200 for for viewers out there who are not aware under 200,000 in JavaS claims didn't happen one time from 20,000 through through basically through co these are exceedingly incredible numbers. And so just when you take a step back from one being bullish or bearish, the backdrop is positive. Now the valuation argument is something we can have. You look at SanDisk and some of the movies in those names, obviously South Korea, but but the fundamental backdrop is still very positive. >> And the CNBC host opened the discussion by pressing Lee on whether the market's current momentum is sustainable or if the bulls are simply too exuberant in calling for an immediate march toward 8,000. Lee responded by pointing directly to the sharp deleveraging event that shook the market just a few weeks prior. According to Lee, that sudden correction flushed out overleveraged players, pushed investor sentiment into deeply bearish territory, and left a massive pile of cash sitting idle on the sidelines. He noted that while the Federal Reserve's defensive posture initially prompted investors to derisk, a subsequent wave of strong corporate earnings and cooling inflation data has forced a dramatic reassessment. Investors who ran for the hills are now finding themselves empty-handed in a rising market, creating a powerful dynamic where they are forced to chase performance to catch up. My read on this is that Lee is identifying a classic market structure phenomenon, a technical flush that removes leverage without damaging the underlying economic engine often behaves like a coiled spring. When the fundamental data refuses to deteriorate, that sidelined cash has no choice but to capitulate and buy back in at higher prices. It is a highly persuasive argument because it separates temporary price volatility from permanent economic damage, showing that the recent panic was merely a cleansing of weak hands rather than the start of a secular bare market. As the conversation progressed, the CNBC host turned the heat up on the macroeconomic picture, specifically asking how the Federal Reserve's upcoming policy decisions could disrupt this trajectory. If the Fed cuts rates too slowly, doesn't that risk a hard landing? And if they cut too quickly, do we risk reigniting inflation? If this is the kind of breakdown you want more of, like the video and subscribe to the channel. Lee did not blink. He argued that the Fed is currently in a highly favorable position, executing what he calls a defensive recalibration rather than an emergency rescue. He pointed out that real-time inflation metrics, especially in the housing sector, are already tracking well below the official lagging government data. In Lee's view, the Fed has ample room to ease monetary policy, and historical data shows that rate cuts during a non-recessionary period are exceptionally bullish for stocks. My take on this is that the market is heavily discounting the power of a Fed put that is actually backed by falling inflation. When the central bank is cutting rates, not because the economy is broken, but simply because inflation is normalizing, it frees up capital to move further down the risk curve. But let's pause and ask a critical question. Is it really that simple? If the economy keeps running hot, those rate cuts might stall, which would immediately test the patience of those investors currently holding that massive pile of sideline cash. That brought the interview to its next logical battleground, valuation. The host challenged Lee on the sheer math of an 8,000 S&P target, noting that the index is already trading at historically high multiples. How do you push a market that high without creating an unsustainable bubble? Lee's response focused entirely on the earnings engine. He emphasized that we are witnessing an unprecedented productivity boom driven by enterprise technology spending. This is not the late9s.com bubble where companies were valued on eyeballs and promises. The companies leading this market today are generating massive tangible free cash flows. He also highlighted that the equal weighted SNP500 is trading at a significant discount to the cap weighted index, suggesting that the rally has plenty of room to expand into the other 493 stocks as interest rates fall and lower borrowing costs lift midsize corporations. This is where Lee's thesis gets highly compelling. If you only look at the headline index, valuations seem stretched. But when you strip out the top 10 meggaaps, the rest of the market is priced for a much more conservative environment. As regional banks, industrials, and small caps begin to benefit from lower rates, we are likely to see a rotation that sustains the broader markets upward march without requiring Nvidia, ticker symbol NVDA, to double every single quarter. Ultimately, the path to 8,000 is paved with the gradual capitulation of the skeptics. As long as earnings growth remains resilient and the Fed continues its orderly retreat from restrictive territory, that mountain of sideline cash will keep acting as a structural floor. The next few months of inflation data will be the ultimate test of this theory. But for now, the momentum belongs to the believers. If the economy keeps running hot, those rate cuts might stall, which would immediately test the patience of those investors currently holding that massive pile of sideline cash. Ultimately, the durability of this bull market depends on whether corporate profits can outpace the cooling of the labor market. While skepticism remains high, the sheer weight of capital waiting for a dip continues to provide a massive safety net. We will know soon enough if the data justifies the optimism or if the market has finally run out of room to climb. Now, let's dive in and break down the two beaten down AI stocks that Wall Street believes could have explosive upside as the market's margin unwind begins to calm down. And that brings us to our first stock, Regetti Computing, ticker symbol RGTI. Regretti is an unusual AI investment because this is not primarily an artificial intelligence company. It is a quantum computing company. But that distinction could become much less important over time. The future of artificial intelligence is ultimately constrained by computing power. The more sophisticated AI models become, the more difficult the computational problems become. And if artificial intelligence continues moving toward increasingly complex simulations, scientific discovery optimization materials research, financial modeling, and other computationally intensive applications, traditional computing architectures may eventually struggle with certain classes of problems. That is where quantum computing becomes interesting. Quantum computing is designed to approach certain extremely complex computational problems differently from conventional computers. And the long-term investment thesis surrounding Regetti is that quantum systems and artificial intelligence could eventually become complimentary technologies. Rather than thinking about quantum computing as something competing with AI, think about it as potentially becoming another layer of computing infrastructure available to increasingly powerful AI systems. That possibility is what makes Regetti interesting. The company is developing quantum processors and the supporting infrastructure required to make quantum computing commercially useful. And while practical quantum computing remains an emerging technology, the potential applications are enormous. Imagine AI systems capable of analyzing scientific problems that would take conventional computing systems extraordinary amounts of time to process. Imagine pharmaceutical research where increasingly sophisticated computational systems can evaluate massive numbers of molecular interactions. Imagine logistics networks optimizing millions of variables simultaneously. Imagine advanced materials discovery, financial modeling, cyber security applications and industrial simulations where the number of possible outcomes become so large that conventional systems struggle to evaluate them efficiently. These are the types of computational challenges that have made quantum computing one of the most ambitious technology opportunities in the market. And this is exactly why Regetti represents such an interesting asymmetric investment because Wall Street is looking beyond what the company is today. It is attempting to value what the company could become if quantum computing transitions from an experimental technology into commercially important infrastructure. Nine analysts currently cover Regetti. Six rate the stock a buy. The remaining three rated a hold. That means none of those nine analysts currently have a sell rating on the shares. But the price targets are where things become particularly interesting. The average Wall Street price target stands at approximately 30.71 per share based on the price referenced in the analysis that represented roughly 90% potential upside over the following 12 to 18 months. In other words, analysts were effectively suggesting that Regetti could nearly double. But one analyst believes the opportunity could be significantly larger. John McPeek of Rosenblat Securities has placed a $40 price target on Regetti. That target represented approximately 150% potential upside from the stock price at the time. And importantly, McPeek reiterated that bullish prediction on July 29th. Now price targets should never be mistaken for guarantees. What matters is understanding why such a wide gap exists between the market price and the bullish scenario. And with Regetti, that gap exists because this company represents both enormous technological potential and enormous execution risk. That combination creates volatility. It also creates opportunity when expectations become extremely pessimistic. Regetti shares had fallen roughly 30% year-to date at the time of the analysis. And there are legitimate reasons investors have become cautious. The company has not completely resolved concerns surrounding technology development and product release delays that matters enormously. Quantum computing is not an industry where investors can simply look at customer growth and quarterly revenue and assume everything is progressing normally. The technology itself has to work. The hardware has to improve. Performance targets have to be achieved. Systems need to become more reliable. And eventually those systems need to solve commercially valuable problems economically enough that customers are willing to pay for them. Every delay pushes that commercial future farther away. And because companies like Regetti are being valued largely on expectations about future technological progress, even relatively small setbacks can create dramatic movements in the stock. There is another issue investors should pay attention to. In June, Regetti Chief Technology Officer David Rivas sold 499,328 shares for approximately $12.7 million. Any insider transaction of that size deserves attention. It does not automatically mean insiders believe the company is in trouble. Executives sell shares for many reasons, including diversification, taxes, and personal financial planning. But when a company is already facing concerns surrounding technology development and commercialization, investors should not simply ignore a multi-million dollar insider sale. It belongs in the risk calculation. And that brings us to perhaps the most important distinction with Regetti. This is not the kind of stock you analyze primarily by asking what its earnings will be next quarter. You have to ask whether the underlying technology is progressing toward commercial usefulness. Because if the answer eventually becomes yes, today's valuation could look completely different. But if development takes significantly longer than expected, investors could experience years of volatility, delusion, and disappointing returns. That is why the stock has been punished. And paradoxically, that is also why Wall Street sees so much potential upside. The market does not usually give investors 90% or 150% potential upside without attaching substantial uncertainty to the opportunity. Regetti is a perfect example. The bullish thesis depends on technological execution. But there is another part of the story that investors should not overlook. Quantum computing does not necessarily need to replace conventional computing to become enormously valuable. It simply needs to become dramatically better at solving certain categories of problems. That distinction matters. Traditional computers will remain essential. AI accelerators will remain essential. Cloud computing will remain essential. Quantum systems could eventually become specialized computational tools that work alongside those technologies. And artificial intelligence could become one of the most important beneficiaries. AI models are fundamentally built around processing enormous amounts of information, recognizing patterns, and optimizing outcomes. As the complexity of those problems increases, access to new forms of computational power becomes increasingly valuable. That creates the possibility of a feedback loop, more powerful computing enables more sophisticated artificial intelligence. More sophisticated artificial intelligence creates demand for even more powerful computing and that increased demand drives further investment into advanced computing architectures. Regetti is attempting to position itself inside that cycle. This is why investors should look beyond the fact that Regetti is technically categorized as a quantum computing stock. If quantum computing and artificial intelligence increasingly converge, companies developing viable quantum hardware could gain exposure to one of the most important technological transitions of the next several decades. But there is a major difference between having exposure to a technological revolution and successfully monetizing it. And that is the question Regetti still has to answer. Can the company execute quickly enough? Can it continue improving its hardware? Can it overcome technical bottlenecks? Can it scale commercially? And perhaps most importantly, can it do all of that before competitors and alternative technologies make its approach less valuable? Those questions explain why this stock deserves both excitement and skepticism. The potential reward is enormous precisely because the outcome remains uncertain. But there is another psychological element investors need to understand. The easiest time to become excited about speculative technology stocks is usually after the technology begins working and the stock has already surged. The harder moment is when expectations have collapsed. Regett's roughly 30% year-to-ate decline has dramatically changed the riskreward equation compared with buying the stock after a major rally. Consider the numbers again. The stock was trading around $16.53 in the referenced analysis. Its 52- week range stretched from approximately $12.53 all the way to $58.15. That means investors have already seen just how violently sentiment surrounding this company can change. At one point during the previous 52 weeks, the market valued the shares at more than three times the reference price. Now, Wall Street's average target sits at $30.71 and the most bullish analyst sees $40. That does not mean the stock automatically returns to those levels. It tells us how aggressively expectations have been reset. The market capitalization was approximately $5.5 billion at the referenced price for a company still working through major commercialization challenges. That valuation means investors are already paying for substantial future potential. So this is not cheap simply because the share price has fallen. That is an important distinction. A falling stock is not automatically an undervalued stock. The investment becomes attractive only if the company's future economic potential is greater than what today's valuation implies. For Regetti, that future economic potential ultimately comes down to whether quantum computing becomes commercially important and whether Regetti captures a meaningful piece of that opportunity. That is the bet and investors considering this stock should understand exactly what they are buying. You are not buying a mature technology company producing predictable cash flows. You are buying optionality on a potentially transformational computing architecture. If Regetti succeeds, the upside could be enormous. If development timelines continue slipping, the downside could also be significant. That makes position sizing particularly important with a company like this. The strongest reason to watch Regetti right now is not simply because one analyst thinks the stock could rise 150%. It is because the stock sits at the intersection of two potentially transformative technological trends. Artificial intelligence needs increasingly powerful computational infrastructure. Quantum computing is attempting to create an entirely new category of computational power. If those two technologies begin working together at commercial scale, the companies providing that infrastructure could occupy extraordinarily valuable positions in the technology ecosystem. And after the stocks decline, investors are being offered that possibility at a dramatically lower price than they were near the highs. The market is effectively asking investors a difficult question. Are Regett's problems temporary execution challenges or are they evidence that commercialization will take much longer than bullish investors expect? John McPeak is clearly betting on the first scenario. His $40 target suggests he believes Regetti can overcome its current challenges and regain investor confidence. The broader analyst community is less aggressive, but still remarkably bullish with six buy ratings, three hold ratings, and an average target implying approximately 90% upside from the referenced price. That is a substantial disconnect between Wall Street expectations and current market sentiment. And those are exactly the situations worth studying, not because Wall Street is always right. It isn't. But because large differences between price and expectations force us to identify what the market is afraid of and determine whether those fears are temporary or permanent, with Regetti, the fear is clear. Execution, development delays, commercial scaling, and uncertainty about how quickly quantum computing can move from technological promise to economic reality. The opportunity is equally clear. If quantum computing becomes an essential partner to increasingly sophisticated AI systems, today's quantum infrastructure companies could eventually become strategically important pieces of the AI economy. That is what makes Regetti Computing one of the most fascinating high-risk high upside AI adjacent stocks to watch as the market begins looking beyond the recent unwind. If this resonates with you, you're exactly who this channel is for. Please hit the like button, share the video, and leave your thoughts in the comments. Subscribe to the channel so you don't miss out on the next important financial investing update. Remember to do your own research before you invest in any stock. Now, let's move to the second stock. And this one gives investors much more direct exposure to the commercialization of artificial intelligence. Soundhound AI, ticker symbol SU N. If Regetti represents a bet on the computing infrastructure that could help power increasingly sophisticated AI systems, Soundhound represents something very different. It is a bet on AI becoming embedded directly into the way people interact with businesses, products, and services. And that distinction matters. Soundhound has spent years developing voice artificial intelligence technology designed to understand natural human conversation and turn that conversation into useful actions. The long-term opportunity is not simply creating a voice assistant that can answer basic questions. The bigger opportunity is creating AI systems capable of understanding what customers actually want, maintaining context throughout a conversation, interacting with business systems, and completing transactions that moves Voice AI from being a novelty to becoming an economic tool. And if Soundhound can establish itself as an important platform in that transition, the company could participate in a market that extends across enormous categories of the economy. This is why the business matters before we even look at the stock price. As artificial intelligence becomes more capable, businesses are increasingly asking a simple question. How can we use this technology to reduce friction between customers and our products? Voice is one of the most natural answers. People do not need to learn a new interface. They already know how to speak. The technology simply has to become good enough to understand them. That creates an enormous potential market for conversational AI. And unlike Regetti, where much of the investment thesis depends on quantum computing becoming commercially viable at scale, Soundhound is already generating the vast majority of its revenue from artificial intelligence products and services. The question is no longer whether Soundhound can generate revenue from AI. The question is whether it can scale that revenue efficiently enough to build a profitable business. That difference is critical and right now, Wall Street appears remarkably optimistic about the answer. Soundhound shares were down approximately 42% year-to date at the time of the analysis. Yet all four Wall Street analysts covering the stock rated it a buy, not three out of four. All four, their average price target was $12.75 with Sound Hound trading around $7.08 in the referenced analysis. That target suggested approximately 110% upside. Essentially, Wall Street's average expectation implied that the stock could more than double. And then there is the most bullish analyst, Scott Buck of HC Wayright, placed a $20 price target on Soundhound that represented approximately 228% potential upside from the stock price referenced at the time. Again, price targets are not promises. But a potential return of that magnitude immediately raises the question investors should always ask. What does the analyst believe the market is missing? With Soundhound, one of the answers appears to be growth. The company achieved approximately 100% sales growth in 2025. Think about what that means. Revenue did not increase 10%. It did not increase 20%. It doubled. And importantly, that growth was supported by both new customers and renewals from existing customers. That combination matters because acquiring customers can prove there is demand for your product. But getting customers to renew helps demonstrate that the product is providing enough value for them to keep paying. For an emerging AI company, that is a much more important signal than simply generating excitement around the technology. Businesses ultimately do not care whether an AI product sounds impressive in a presentation. They care whether it saves money, generates revenue, improves customer experiences, or increases productivity. If customers continue renewing, it suggests Sound Hound's technology is becoming useful enough to remain part of their operations. But growth alone is not the entire investment thesis. The next stage is arguably even more important, cross-selling. And this could become one of the biggest catalysts for Soundhound's economics. Imagine a company acquires a customer with one AI product. That initial sale comes with expenses. There are sales costs. There may be marketing costs. There may be integration expenses. There may be implementation work. All of those costs reduce the economic value of acquiring that customer. But once the customer relationship already exists, Soundhound has another opportunity. Instead of spending heavily to find an entirely new customer, it can sell additional products and services to the customer it already has. That is where the business model could become much more attractive. The company does not necessarily need to recreate the entire customer acquisition process every time it wants to generate another dollar of revenue. It can potentially expand the value of existing relationships and that can accomplish two things simultaneously. First, it can accelerate revenue growth. Second, it can improve margins. This is one of the major reasons analysts remain bullish on Soundhound despite the dramatic decline in the stock. The market may be looking at what the company earns today. The bullish argument is focused on what the economics could look like if Sound Hound successfully expands revenue per customer while controlling acquisition costs. That brings us to profitability. Scott Buck has argued that strong sales growth could help Soundhound reach positive adjusted EIAR margins by late 2026. That would be an important milestone because one of the biggest challenges facing emerging AI companies is proving that rapid revenue growth can eventually translate into sustainable profitability. Investors have become much less willing to reward growth at any price, a company can produce impressive revenue numbers. But if expenses continuously rise just as quickly, shareholders eventually start asking where the operating leverage is. Soundhound needs to show that as the business becomes larger, each additional dollar of revenue can become increasingly valuable. Cross-selling could help accomplish that, and that makes margin expansion one of the most important metrics to watch. At the time of the referenced analysis, Soundhound had a market capitalization of approximately $3.1 billion. Its shares were trading around $7.08, but the stock's 52- week range tells a much bigger story. Shares had traded as low as approximately 5 65 and as high as $22.17. That means the stock had already demonstrated how dramatically investor expectations could change. At the reference price, Soundhound was trading more than 68% below its 52- week high. That decline is important because it changes the conversation. When a high growth AI stock is trading near its highs, investors are often paying for almost perfect execution. When the same stock falls dramatically, expectations begin resetting. But just like we discussed with Regetti, a lower share price does not automatically mean a company is cheap. Soundhound still has to justify its valuation. And the company has to do that by converting rapid sales growth into increasingly attractive economics. That is why the next phase of this story is so important. The company has already demonstrated that it can grow. Now investors need evidence that growth can become profitable. If Soundhound can maintain strong customer acquisition, increase renewals, cross-ell more products into its existing customer base and move toward positive adjusted avatar margins, the market could begin valuing the business very differently. That is the bull case. But there is another reason Soundhound could become increasingly relevant over the long term. Voice may become one of the primary interfaces for artificial intelligence. Think about how humans naturally communicate. We speak. Typing is something we learned because computers required it. Menus are something we learned because software required them. Buttons are something we learned because devices required them. But conversation requires almost no learning curve. If artificial intelligence becomes capable enough to understand context, intent and complex requests reliably, then talking to machines could increasingly become easier than navigating traditional interfaces. That creates an enormous opportunity. The winners in conversational AI may not simply provide software. They could become gateways between customers and businesses. And gateways can become extremely valuable. But Soundhound still has to prove that it can defend its position. As this market becomes more competitive, the attraction of artificial intelligence is also what creates the risk. When an opportunity becomes obviously enormous, capital floods into it. Technology improves rapidly. Customers gain more choices, and yesterday's technological advantage can disappear quickly. So, Soundhound cannot rely simply on being early. It needs to continue improving its technology, expanding customer relationships, and embedding itself deeply enough into business operations that switching becomes inconvenient or economically unattractive. That is where a real moat could begin forming. The strongest version of the Soundhound investment thesis is not simply that voice AI grows. It is that Soundhound becomes increasingly embedded into its customers operations and then uses those relationships to sell additional AI capabilities. If that happens, customer lifetime value can rise, revenue per customer can rise, acquisition costs can become more efficient, margins can improve, and the business can begin demonstrating operating leverage. That is the sequence investors should be watching. Not simply whether revenue grows, but how that revenue grows. There is an enormous difference between spending aggressively to constantly acquire new customers and expanding revenue from customers you already have. The second model can become significantly more scalable and that is why the cross-selling opportunity could become one of the most important factors influencing Soundhound stock. The company entered this period with substantial momentum after achieving 100% sales growth in 2025. The bullish thesis now requires Soundhound to prove that this growth can translate into better economics. If Scott Buck is right and the company reaches positive adjusted Ibbitar margins by late 2026, that could represent a major psychological turning point for investors because the narrative would begin shifting from an AI company spending money to capture an opportunity toward an AI company demonstrating a credible path to profitable scale. That transition can dramatically change how growth companies are valued. And this is why Soundhound may be particularly interesting after a 42% year-to-ate decline. The stock has been punished. Expectations have been reset. Yet, the analysts following the company remain bullish. All four analysts covering Soundhound rate the shares a buy. The average target of $12.75 represented roughly 110% potential upside from the referenced price, and Scott Buck's $20 target represented approximately 228% potential upside. The market is clearly skeptical. Wall Street is clearly optimistic. One of those perspectives will eventually prove closer to reality. And the deciding factor will probably not be AI excitement. It will be execution. Can Sound Hound keep growing? Can it cross-ell effectively? Can it improve margins? Can it turn existing customer relationships into increasingly valuable recurring economic assets? And can it ultimately prove that its conversational AI platform deserves a durable position in an increasingly competitive AI ecosystem? If the answers begin moving consistently toward yes, then the current stock price could eventually look extremely pessimistic. If growth slows and margins fail to improve, the decline could prove justified. That is the trade-off, and it is what makes Sound Hound such an interesting stock at this stage of the AI cycle. Artificial intelligence is creating opportunities measured not merely in billions, but potentially trillions of dollars. Roboaxis alone could eventually represent a 10 trillion market. According to some estimates, the ongoing data center buildout could represent another $7 trillion opportunity over the next several years. Those numbers demonstrate the extraordinary economic transformation taking place around AI. But investors do not necessarily need to predict which single application becomes the biggest. They need to identify businesses capable of capturing value as intelligence becomes embedded throughout the economy. Soundhound is trying to capture that value at the interface between humans and machines. Regretti is trying to capture it at the frontier of computational power. Two very different approaches, two very different risk profiles, and two stocks trading dramatically below their previous highs while Wall Street continues projecting substantial upside. This video is brought to you by Value Stocks Investing Master Course. If you're looking to grow your wealth by investing in solid undervalued stocks, but not sure where to start, I created the value stocks investing master course to teach you how to identify great companies, make smart investment decisions, and build a portfolio that lasts. Click the link in the description and pinned comments to get the course today, and take control of your financial future. When comparing these two businesses, I think the most important distinction is where each company sits in the AI value chain. Regetti offers exposure to the possibility that quantum computing becomes a powerful companion to artificial intelligence. The upside could be extraordinary if quantum systems eventually become commercially important for solving computational problems that conventional systems struggle with. But the technological and commercialization risks remain substantial. Soundhound is already monetizing AI directly. Its challenge is different. It needs to prove that rapid revenue growth can become profitable, scalable growth. that makes Soundhound easier to evaluate through traditional business metrics, while Regetti requires investors to make much bigger assumptions about the future development of an emerging computing technology. And that leads to the question I want you to answer in the comments. Over the next 5 to 10 years, which long-term advantage do you believe will prove more valuable? Regetti's potential position at the intersection of quantum computing and AI or Sound Hound's opportunity to make conversational AI and everyday interface between businesses and their customers. Let me know which one you would rather own and more importantly tell me why. If you want exclusive stock tips, in-depth analysis, real-time trade alerts, and free investing guides, join the Stocks Galore Patreon today and take your investing game to the next level. Our members get full in-depth analysis on most of the stocks mentioned here. Head over to patreon.com/stocksgalore and become part of our growing community of smart investors. Link is in the description. The larger takeaway is that market corrections can create very different opportunities inside the same technological revolution. Sometimes the strongest opportunities emerge not when investors are universally optimistic, but when expectations have been aggressively reset while the underlying long-term opportunity continues developing. Regetti and Soundhound both demonstrate that tension. Neither investment is without meaningful risk. But both are attempting to establish positions in technologies that could become significantly more important as artificial intelligence evolves. The question investors have to answer is not simply whether AI will continue growing. The question is which companies can turn that growth into durable economic value. Because ultimately technological potential creates the opportunity. Execution creates the shareholder returns. Do not forget to like the video, share your thoughts in the comments, and subscribe so you do not miss the next important investing update. Thanks for watching and I will see you in the next