These 2 things should be on your radar

What are called penny stocks are not actually stocks that trade for less than $1 per share. This term generally refers to stocks that trade for less than $5 per share.

As any early investor in Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), or any other giant will tell you, the only way to properly predict Wall Street’s future is to buy penny stocks and long-term investments. Keep it up and you will be happy with the results.

But for every Apple or Amazon, there are hundreds or thousands of penny stocks going nowhere. And many of them “grow” into good, solid companies.

Even if it doesn’t turn out to be the next Amazon, the best penny stocks for 2024 could be solid investments that generate excellent returns for shareholders.

Here are two penny stocks that may not be 10x stocks, but could be solid growers for years to come.

1. SoundHound AI

As the name suggests, SoundHound AI (NASDAQ:SOUN) provides AI voice solutions to customers. The platform has the ability to enable products, services and apps with voice-related features such as speech recognition, text-to-speech, music and content recognition, and other voice features.

SoundHound’s technology is used in applications such as restaurant ordering, call centers, and automotive. According to the company, its mission is to “voice-activate the world with conversational intelligence.”

SoundHound received a lot of attention earlier this year when it was revealed that AI powerhouse NVIDIA had invested approximately $3.6 million in SoundHound stock. The stock soared to nearly $9 per share in March.

But SoundHound stock is now back in penny stock territory, trading at $4.08 per share. So, now seems like a good time to kick the tires on this stock, as the company has a few things going for it.

First, SoundHound is one of the leaders in the AI ​​voice space, and some analysts believe the next wave of AI growth will shift from chipmakers to users. That will put the company in the best position.

SoundHound also has a wide range of large customers across the tech world, automotive industry, and restaurants, which is another positive point. Many companies trading in the penny stock space rely too heavily on too few large clients.

SoundHound isn’t yet profitable, but its revenue is growing quickly, surging 73% in the first quarter. The company also raised its full-year revenue forecast to a new range of $65 million to $77 million.

SoundHound’s median price target is $8 per share, which would represent a 95% increase from the current price. Even the lowest target price estimate is a 22% increase to $5 per share, so it’s clear the analysts are optimistic about the outlook.

2. Joby Airlines

Many science fiction movies of the past suggested that we would now all drive around in flying cars. That hasn’t happened yet, Joby Airlines (NYSE:JOBY) is in the works.

Joby is actually building an all-electric vertical takeoff and landing (VTOL) aircraft designed, at least initially, to be used as an air taxi.

The company is still in its infancy but has tremendous potential. Joby signed a contract with the U.S. Air Force to launch air taxis in the United Arab Emirates in 2026. Last year, the company completed a display flight at New York’s JFK Airport.

Joby is partnering with Delta Air Lines and plans to launch a commercial air taxi service in New York in 2025, pending FAA approval. Apart from that, the company is hoping to expand its services to more cities.

Joby has conducted more than 1,500 flights over 33,000 miles with its prototype and recently became the first electric air taxi company to have final airworthiness standards issued by the FAA.

The company also confirmed that no design changes are required to meet certification requirements. There are still two more steps to complete and we are progressing well.

Although Jobi does not have a lot of profits, he is literally just getting started. When this technology is eventually commercially launched, Joby will be in an excellent position as a First Mover in this space.

Analysts set a price target for Joby at $8. It’s currently trading at around $4.96 per share, so that’s a 61% increase.

Of the two, Joby will probably have a longer runway than SoundHound, as the air taxi industry is still forming. However, both stocks are worth watching for their potential as leaders in high-tech industries.