Better Artificial Intelligence (AI) Stock: Palantir vs. SoundHound AI

Group 1: Company Performance - Palantir Technologies (PLTR) and SoundHound AI (SOUN) experienced significant stock price increases in 2024, with Palantir's stock up nearly 400% and SoundHound AI's gaining almost 900% [1] - In Q3, Palantir's revenue rose 30% year over year to $725 million, while SoundHound AI's revenue increased 89% to $25 million [6] - Wall Street analysts expect Palantir's revenue to grow by 24% next year, whereas SoundHound AI's revenue is projected to rise by 96% [7] Group 2: Business Models and Strategies - Palantir focuses on providing purpose-built AI applications, integrating generative AI within businesses, and has a balanced customer base between government and commercial sectors [2] - SoundHound AI specializes in audio input for AI models and has partnered with major players like Nvidia, finding success in various industries including restaurants, automobiles, finance, and healthcare [5] Group 3: Financial Metrics and Valuation - Palantir has a profit margin of 20%, while SoundHound AI has a negative profit margin of 87% [6] - SoundHound AI is expected to achieve adjusted EBITDA profitability by the end of 2025, although it is not projected to make a true profit in 2025 [8] - SoundHound AI trades at 92 times sales, while Palantir trades at 75 times sales, indicating both are among the most expensive stocks in the market [16]