When looking into the best Nasdaq AI stocks to buy, it is important to look at the economy as a whole. The future of the US economy looks promising as recent data reveals a robust and resilient growth trajectory. Personal spending surged in February, surpassing economist predictions, while consumer sentiment reached its highest level in months. Despite some uncertainties regarding inflation, Federal Reserve Chair Jerome Powell remains optimistic, indicating that the economy can weather potential challenges. This resilience offers policymakers the flexibility to monitor developments and make informed decisions to sustain economic momentum.

The AI industry is set for exponential growth, with market size projected to skyrocket to $1.3 trillion by 2032. With this industry confidence, I am very bullish on these top Nasdaq AI stocks to buy, which are projected to grow even more than the economy.

SoundHound AI (SOUN)

SoundHound AI (NASDAQ:SOUN) is a voice and speech recognition AI company that focuses on developing natural language understanding and search technologies.

SOUN saw its market cap rise from $520 million in 2023 to $1.82 billion in 2024 representing an increase of 247.81%. Revenue was $45.9 million and grew substantially at 47.36% year-over-year (YOY). The gross profit margin was 75.35%, or 54.84% more than the sector median of 48.66%. Overall, these metrics depict SOUN as a company with strong growth prospects.

SOUN has recently struck a deal with AI giant Nvidia (NASDAQ:NVDA) regarding the on-chip voice AI. This is the flagship product of SOUN and provides in-vehicle generative AI responses with no connectivity required. This partnership shows promise for SoundHound and indicates product maturity and reliability.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) has been one of the largest technology companies in the 21st century, officially reaching the largest market cap in the world at $3.09 trillion. So far in 2024 MSFT has seen successful growth of its valuation, it has increased more than 50% YOY.

MSFT’s financials continue to climb, posting a strong Q4 2023 with green across the board. In revenue, MSFT made a sizable increase reporting $62.02 billion YOY with a 17.6% increase. Likewise, you can see the success in the net income and diluted EPS, with both jumping 33% YOY to $21.9 billion and $2.93 respectively. In the past quarter, strong financials were backed by market successes.

At Microsoft’s recent event, the company said it is taking steps to successfully compete in the AI race. Largely, Microsoft aims to take a lead through collaborations with industry giants, like Nvidia, where MSFT products are set to adopt Nvidia’s AI capabilities. With these decisions, expect for Microsoft to surf along NVDA’s AI successes and boost their valuation.

Cadence Design Systems (CDNS) 

Cadence Design Systems (NASDAQ:CDNS) is a top electronic design automation provider helping to create more efficient and powerful chips. The company plays a vital role in the electronic design automation industry and provides its software for a variety of companies. Cadence’s strong position in the industry provides it with unbeatable revenues leading CDNS to contribute 12% of the industry’s total revenue. Cadence Design Systems, known for its unbeatable software, commands a market cap of $81.24 billion.

For the financial year of 2023, CDNS reported revenues of $4.09 billion. Net income grew 22.64% and diluted EPS rose 23.62% to 1.04 billion and $3.82 respectively. Best of all, Cadence reported a levered FCF Margin of 27.27%. 

As the design for chips used in AI is getting complex, so are the companies that provide these design solutions. Many companies such as Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) come to Cadence for its superior software designs.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.