SoundHound vs. BigBear.ai: Which AI Stock Has More Upside Now?

Core Insights - AI stocks have experienced significant volatility in 2025, with SoundHound AI and BigBear.ai emerging as notable players in different sectors [1][2] - SoundHound focuses on voice-enabled AI for various industries, while BigBear.ai targets national security and government contracts [1][9] Company Performance - SoundHound AI reported a remarkable 217% year-over-year revenue growth in Q2 2025, reaching approximately $42.7 million, driven by expansion in the quick-service restaurant sector [4][8] - BigBear.ai's Q2 2025 revenue declined to around $39.8 million, missing expectations due to execution challenges [10][8] Growth Outlook - SoundHound raised its 2025 revenue guidance to $160–$178 million, nearly doubling its 2024 revenue of $84.7 million, reflecting strong demand for its voice AI solutions [4][18] - BigBear.ai cut its revenue outlook and withdrew EBITDA guidance, indicating challenges in achieving profitable growth [12][8] Market Positioning - SoundHound is establishing itself as a leader in automating voice-based transactions, particularly in the restaurant industry, with over 14,000 locations adopting its technology [4][5] - BigBear.ai specializes in "decision intelligence" for critical sectors like defense and logistics, benefiting from government contracts [9][11] Share Price Performance - SoundHound's stock surged 836% in 2024, while BigBear.ai's stock increased by nearly 108%, both experiencing extreme volatility [13] - In the past month, SoundHound shares gained 11.8%, outperforming BigBear.ai, which saw a decline of 23.1% [14] Valuation Metrics - SoundHound's stock trades at a forward price-to-sales ratio of 25.91X, reflecting a high valuation despite ongoing losses [17] - BigBear.ai's stock trades at a lower 12.93X price-to-sales ratio, but its slow growth and challenges prevent it from being considered a bargain [19] Earnings Estimates - Analysts have become more optimistic about SoundHound's earnings potential, with the consensus estimate for its 2025 loss per share narrowing to 13 cents [20] - In contrast, BigBear.ai's consensus estimate for 2025 loss per share has widened to $1.10, with expected revenue decline of 16.2% [26] Conclusion - SoundHound AI shows stronger growth potential and a better outlook for 2025, while BigBear.ai faces challenges with slower growth and larger losses [27]