Better Artificial Intelligence Stock: SoundHound AI vs. C3.ai

Core Viewpoint - Advances in artificial intelligence (AI) are significantly transforming the global economy and business productivity, with SoundHound AI and C3.ai positioned for long-term growth despite recent stock sell-offs [1]. Group 1: SoundHound AI - SoundHound AI is a leader in conversational AI, providing voice solutions that enhance user interaction with technology [3]. - For the year ended December 31, 2024, SoundHound AI reported total revenue of $84.7 million, reflecting an 85% year-over-year increase [4]. - The company has a subscriptions and bookings backlog of $1.2 billion, indicating strong future revenue potential [4]. - For 2025, SoundHound AI targets full-year revenue between $157 million and $177 million, representing a 97% increase at the midpoint [5]. - The company anticipates achieving positive adjusted EBITDA by the end of 2025 [5]. - SoundHound AI's agentic AI applications could revolutionize customer service and employee experience, potentially replacing human-operated call centers [6]. - Investors are encouraged to consider SoundHound AI for long-term growth in the voice-driven AI sector [7]. Group 2: C3.ai - C3.ai focuses on enterprise AI, offering a platform for developing and deploying custom AI applications with a low-code architecture [8]. - The company has established a strategic alliance with Microsoft, enhancing its business through the Azure cloud ecosystem [9]. - For the fiscal third quarter ending January 31, C3.ai reported total revenue of $99 million, a 26% year-over-year increase, up from 18% growth in the prior year [10]. - C3.ai targets revenue growth of 24% to 27% for the full year, with a narrowing financial loss [10]. - C3.ai has a market capitalization of $3.1 billion, lower than SoundHound AI's $4.1 billion, despite higher total revenue [11]. - The forward price-to-sales ratio for C3.ai is 8, indicating it may be undervalued compared to SoundHound AI's ratio of 25 [11]. Group 3: Investment Outlook - Both SoundHound AI and C3.ai are viewed as compelling buy-the-dip opportunities, with SoundHound AI expected to outperform due to its stronger growth outlook [13]. - SoundHound AI is recommended for investors seeking tech sector exposure within a diversified portfolio [13].