Core Viewpoint - AI software stocks are expected to emerge as significant market players in 2026, following the dominance of semiconductor and AI infrastructure stocks in recent years [1] Group 1: SoundHound AI - SoundHound AI is transitioning from an AI voice company to a voice-led agentic AI company, leveraging its voice technology for a competitive advantage [2] - The company experienced rapid growth, with revenue more than doubling in the first nine months of 2025, and has established a strong presence in the automobile and restaurant industries [4] - SoundHound AI's acquisition of Amelia has enhanced its capabilities in creating an agentic AI platform and expanded its customer relationships in healthcare, financial services, and retail [4] - The company is improving its gross margins, with expectations of generating positive EBITDA soon, and is well-positioned for future growth [6] Group 2: Salesforce - Salesforce is viewed as a potential AI loser but is actually well-positioned due to its role as a system of record for customer service, marketing, and sales [8] - The acquisition of Informatica strengthens Salesforce's data management capabilities, enhancing its position as a reliable data source [8] - Salesforce's Agentforce solution is integrated throughout its product suite, with annual recurring revenue (ARR) for Agentforce surging 330% to $540 million last quarter [9] - The stock is considered undervalued, trading at a forward price-to-sales (P/S) ratio below 5.5, a forward price-to-earnings (P/E) ratio around 20, and a price/earnings-to-growth (PEG) ratio below 0.65 [10] Group 3: Snowflake - Snowflake operates a cloud-based data warehousing and analytics platform that separates storage from compute, allowing customers to access data across different cloud providers [11] - The platform's architecture creates a "sticky" environment for customers, making it difficult to move data once integrated [11] - Snowflake is also adopting AI agents through its Snowflake Intelligence solution, which had over 1,200 customers and a $100 million AI revenue run rate at the end of the last quarter [12] - The company reported a 29% revenue increase last quarter, with a net revenue retention rate of 125% over the past 12 months, indicating strong growth potential [13][14]

Company Overview - SoundHound AI specializes in intelligent voice recognition and conversational capabilities for applications such as customer service, in-vehicle voice assistants, and food ordering and delivery [5] - The company is currently collaborating with an undisclosed sports car manufacturer to develop a "personality" for its in-vehicle AI voice assistant [5] Financial Performance - SoundHound AI has a market capitalization of approximately $4.7 billion and is projecting revenues of about $173 million for the current year, resulting in a forward price-to-sales (P/S) ratio of around 27 [6] - The company has managed to reduce its losses by half year over year through the first nine months of 2025, although it is still not profitable [6][7] Market Position and Growth Potential - The stock price of SoundHound AI has increased by about 45% since its public debut via a reverse merger in August 2022, but this is still below the 70% total return of the S&P 500 during the same period [2][3] - Investors who purchased shares between late 2022 and early 2024 have seen returns of approximately 1,000% from December 2022 [3] Valuation Concerns - The current valuation of SoundHound AI is considered high, raising concerns among investors about its sustainability [6][9] - Despite its rapid revenue growth, the high price-to-sales ratio indicates that the stock may be overvalued, which could pose risks if the company's performance does not meet expectations [6][9] Competitive Landscape - There are uncertainties regarding SoundHound AI's ability to fend off competition in the conversational AI market, as being a first mover does not guarantee long-term success [9] - The effectiveness of SoundHound AI's products and the potential for rivals to introduce superior options are critical factors that could impact the company's future performance [9]

Industry Overview - The AI revolution presents numerous investment opportunities and potential for significant economic transformation and productivity enhancements [1] - Companies of all sizes are heavily investing in AI research and infrastructure to remain competitive in the global technology landscape [1][2] Institutional Support - Strong institutional support is anticipated to accelerate the development and adoption of AI technologies, creating a stable environment for AI-focused businesses [2] Investment Recommendations - For investors with $2,000, three AI stocks are recommended for long-term holding [3] Company Analysis: Alphabet - Alphabet has a comprehensive AI ecosystem, including proprietary AI chips (TPUs), foundational models (Gemini), and a robust cloud platform, which provide competitive advantages [5][6] - TPUs are specifically designed for AI tasks, enhancing efficiency and reducing costs in AI training and inference [6] - Alphabet's ability to develop its own silicon allows for greater control over AI development and positions it as a significant player in the AI hardware market [7] - The company utilizes user interaction data from its platforms to refine AI models, boosting its core revenue-generating business, Google Search [9][10] - Alphabet reported a 33% increase in net income in Q3, demonstrating strong financial health and ongoing investment in AI infrastructure [11] Company Analysis: SoundHound - SoundHound specializes in voice and conversational AI solutions, enabling businesses to integrate customized voice assistants [12] - The company has diversified its client base beyond the automotive sector into industries like restaurants and customer service [13][14] - SoundHound's Q3 2025 revenue reached $42 million, a 68% increase year-over-year, although it has not yet posted an annual profit [15] - The company has a significant contractual backlog of approximately $1.2 billion, indicating potential future growth [16] - SoundHound offers customizable solutions that allow businesses to maintain brand control and data privacy, differentiating it from larger tech competitors [17] Company Analysis: Amplitude - Amplitude is a digital analytics platform that leverages AI to enhance user experience and drive revenue growth [18] - The company reported Q3 2025 results with annual recurring revenue (ARR) of $347 million, up 16% year-over-year, and remaining performance obligations (RPO) of $391.9 million, up 37% year-over-year [20] - Amplitude employs a freemium software-as-a-service model, acquiring customers through a free tier and scaling revenue as they adopt more features [21] - The company has over 4,500 customers, with a 15% year-over-year increase in customers generating $100,000 or more in ARR [22] - Although still posting a GAAP net loss, Amplitude is cash-flow positive and anticipates achieving non-GAAP operating income for the full year 2025 [23]

Core Viewpoint - Both SoundHound AI and GitLab are expected to rebound in 2026 after experiencing significant declines in 2025, with SoundHound down over 40% and GitLab down over 30% [1] SoundHound AI - SoundHound's stock decline in 2025 is attributed to Nvidia exiting its position in the company rather than poor operational performance, as revenue has more than doubled in the first nine months of the year [3][4] - The company is a leader in voice AI technology, with capabilities that allow for natural interaction, gaining traction in the automotive and restaurant industries [4] - SoundHound's major opportunity lies in voice-powered AI agents, bolstered by the acquisition of Amelia, which has a strong customer base across various sectors including retail, financial services, and healthcare [6][7] - The rollout of the Amelia 7 platform aims to enhance margins by integrating technologies from both companies [7] GitLab - GitLab's stock performance in 2025 does not reflect its strong operational results, with revenue growth between 25% to 35% over the last nine quarters [8] - The company faces a narrative suggesting it may be negatively impacted by AI, as some believe AI agents could replace coders, potentially harming its subscription model [9] - Despite this narrative, GitLab has maintained strong customer growth, evidenced by a 119% dollar-based net retention rate over the past year [11] - The company has introduced a hybrid seat-plus-usage-based model to mitigate potential risks and enhance growth, while its AI tools like Duo Agent add value to its platform [13] - GitLab is attractively valued at a price-to-sales multiple of 5.7 times fiscal year 2027 estimates, with high gross margins and strong revenue growth [14] Conclusion - Both companies are positioned for a rebound in 2026, but GitLab is viewed as having a better opportunity to outperform due to its sticky platform and new pricing model, which could drive growth [15][16]

Key Takeaways SOUN's restaurant voice AI remained a key contributor in Q3, adding roughly 1,000 locations.SoundHound is expanding restaurant AI beyond order taking into employee assist, insights and workflow tools.Restaurant demand stays resilient as efficiency, labor costs, and accuracy drive adoption and recurring usage.Restaurant-focused voice AI has long been a foundational pillar of SoundHound AI, Inc.’s (SOUN) business, providing early scale, real-world validation, and recurring deployments across nat ...

Core Insights - Arm Holdings is solidifying its position in the AI sector, with significant growth in licensing revenue and profitability driven by increased demand for AI-optimized systems [1][4] - The company reported a record revenue of $1.14 billion in Q2 of fiscal 2026, marking a 34% year-over-year increase, with royalties reaching $620 million [3] - Strategic collaborations with major tech companies like Meta and Samsung are enhancing Arm's AI capabilities across various devices [1][4] Financial Performance - Licensing revenue increased by 56% to $515 million, reflecting strong relationships and interest in AI systems [1] - Adjusted earnings per share (EPS) rose by 30% to $0.39, indicating improved profitability [1] - Arm's annualized contract value for licenses increased by 28%, showcasing robust demand for next-generation designs [3] Market Position and Growth Drivers - The Neoverse platform has surpassed 1 billion CPUs deployed globally, with major tech firms developing custom processors based on Arm architecture [2] - AI workloads are driving growth in data centers, smartphones, automotive systems, and IoT, expanding Arm's royalty base [2][3] - Management anticipates third-quarter revenue of approximately $1.22 billion, indicating continued growth momentum [6] Strategic Collaborations - Collaborations with companies like Meta and Samsung aim to enhance AI efficiency in wearables and smartphones [1] - New platforms such as Lumex CSS are providing powerful on-device AI capabilities, further expanding Arm's market reach [1] Analyst Sentiment - Wall Street analysts have a consensus rating of "Moderate Buy" for ARM stock, with an average target price suggesting a potential upside of nearly 50% [7] - The highest price estimate indicates a possible 90% rally over the next 12 months, reflecting strong investor interest [7]

Core Insights - The article discusses Soundhound's advancements in Agentic AI technology, particularly its applications in in-vehicle commerce platforms, showcasing the company's growth and partnerships in the consumer tech space [1][3][12] Company Overview - Soundhound is expanding its use of Agentic AI technology across various sectors, including food ordering, restaurant reservations, and more, allowing users to interact with services via voice commands while driving [1][2][4] - The company has established partnerships with major platforms like Open Table, which includes 60,000 restaurants, enhancing its service offerings [5][6] Technology and Innovation - Soundhound's technology enables users to find and reserve parking, book restaurant tables, and purchase tickets for flights, concerts, and movies using voice commands [4][5][8] - The company claims to have superior technology compared to competitors, achieving 35%-40% better accuracy and four times lower latency, while also operating at a lower cost [11] Market Performance - In 2024, Soundhound's stock experienced significant volatility, with an increase of over 835% the previous year, followed by a decline of about 44% in the current year [13][14] - Despite the stock's fluctuations, the company emphasizes its long-term growth potential, citing a tenfold increase in revenue over the past two to three years and a strong position as a leading AI customer service provider [14]

Core Viewpoint - SoundHound AI, despite a more than 40% decline in stock value this year, is positioned for potential recovery and growth in the AI sector, particularly through strategic acquisitions and expanding client base [1][7]. Company Overview - SoundHound AI operates an AI platform that facilitates voice-enabled services and applications, enhancing user interaction compared to earlier, less effective technologies [5]. - The company went public in 2021 and has primarily served the automotive and restaurant industries, recently expanding its capabilities through the acquisition of Amelia AI for $80 million in 2024 [6]. Financial Performance - In the third quarter, SoundHound reported a significant net loss of $109.3 million, compared to a loss of $21.7 million the previous year, despite achieving $42 million in revenue, which represents a 68% increase year-over-year [8]. - A substantial portion of the loss, $66 million, was attributed to a noncash, nonoperating accounting charge related to prior acquisitions, with an adjusted net loss of $13 million indicating improvement [9]. - The company ended the quarter with zero debt and $269 million in cash reserves, providing a solid financial foundation for future growth [9]. Market Position and Growth Potential - SoundHound's client base has grown to over 200, and analysts predict a positive outlook for the stock, with a mean price target of $17.19, suggesting a potential increase of 53% from the current price [9]. - The company has diversified its business model to include various functions such as customer service, sales, marketing, operations, and IT service management, enabling over 10 billion personalized automated voice conversations annually [11]. - As businesses increasingly adopt AI solutions for efficiency and personalized customer interactions, SoundHound AI is expected to continue its growth trajectory [12]. Strategic Partnerships and Expansions - Recent agreements include integrating SoundHound Chat AI into numerous AI-enabled smart devices, partnerships with a commercial vehicle company for voice AI installation, and expansions with financial services institutions [13].

Group 1 - Many companies are incorporating "AI" into their branding, but only a few have fully integrated it into their company names [1] - SoundHound AI and C3.ai are two companies that have been committed to AI for a longer time, with C3.ai adopting the ticker symbol "AI" in December 2020 and SoundHound AI adding "AI" to its name in April 2022 [2] - Both companies have been developing AI-powered products since before the generative AI boom began in late 2022 [7] Group 2 - SoundHound AI has maintained a focused approach on voice-driven technology, while C3.ai has shifted its focus across various sectors including Energy and IoT [5] - SoundHound AI has a higher sales multiple at 31 times sales compared to C3.ai's 5.5 times sales, indicating a faster growth rate for SoundHound AI despite both being unprofitable growth stocks [7] - Both companies were founded in the mid-2000s, with C3.ai established in 2009 and SoundHound AI in 2005, and their founders remain actively involved in the companies [8]

Core Viewpoint - SoundHound AI is positioned for significant growth in the voice AI market despite recent stock volatility and challenges in 2024 [1][3]. Company Performance - SoundHound AI has experienced substantial revenue growth, with a reported revenue of $21 million in 2021 and an expected revenue of $172.5 million by 2025, reflecting a compound annual growth rate (CAGR) of 69% [8]. - The stock price has increased by 48% since going public, but has faced volatility due to valuation concerns and external factors such as Nvidia's stake sale [3][2]. Market Potential - The global AI market is projected to contribute $22.3 trillion to the economy by 2030, with each dollar spent on AI expected to generate $4.90 in value [5]. - The voice AI infrastructure market is forecasted to generate $133 billion in revenue by 2034, significantly up from $5 billion last year, indicating a robust growth trajectory [10]. Future Projections - If SoundHound AI maintains a growth rate of 40% annually over the next five years, revenue could reach $928 million by 2030, based on the 2025 revenue estimate [13]. - Assuming a sales multiple of 8.7 times, the market cap could rise to $8 billion, suggesting a potential upside of 74% and a stock price nearing $20 by 2030 [14]. Competitive Advantage - SoundHound AI's voice solutions are in high demand due to their ability to enhance productivity by 30% to 40%, allowing employees to save significant time and reduce errors [7][12]. - The company has a potential revenue backlog of $1.2 billion, which positions it well to exceed future growth expectations [11].