Prediction: While Big Tech Grabs Headlines, These Small AI Stocks Could Outperform

Core Viewpoint - Megacap technology companies are leading the AI conversation through significant investments and profits, but smaller stocks like SoundHound AI present opportunities for outperformance in the AI sector [1]. Group 1: SoundHound AI Overview - SoundHound AI is developing a speech-to-meaning platform that understands user intent in real-time, distinguishing it from other megacap AI companies [3][4]. - The company’s acquisition of Amelia has expanded its capabilities into regulated sectors such as healthcare and finance, enhancing its conversational intelligence [5]. - SoundHound is migrating 15 of its largest enterprise clients to its new platform, Amelia 7.0, which integrates with ERP and CRM systems for comprehensive customer service [6][7]. Group 2: Financial Performance and Growth Potential - SoundHound reported a 217% year-over-year revenue increase, reaching $42.7 million last quarter, indicating strong growth potential [8]. - Management anticipates achieving adjusted EBITDA profitability by the end of 2025, marking a significant milestone for the company [8].