Better AI Stock: Palantir vs. SoundHound AI
The Motley Fool·2025-12-10 18:45

Core Insights - Palantir Technologies has seen its stock price more than double this year, potentially reaching a $1 trillion market cap by 2030, while SoundHound AI's stock has lost over 30% of its value, resulting in a $5 billion market cap [1][2] Palantir Technologies - Palantir's software products, including Gotham for governments and Foundry for businesses, enable advanced data analysis and interpretation, contributing to a 63% year-over-year revenue growth in Q3 [4] - The company closed 204 deals worth at least $1 million, 91 deals worth at least $5 million, and 53 deals worth at least $10 million, showcasing a strong business model with a 40% net profit margin [6][7] - Palantir's current market cap stands at $433 billion, with a gross margin of 80.81% and a price-to-sales (P/S) ratio of 111, which is justified by its significant revenue growth and profit margin expansion [5][10] SoundHound AI - SoundHound AI's stock has been disappointing, with a 68% year-over-year revenue increase to $42 million in Q3, but it incurred a net loss of $109.3 million during the same period [9] - The company has secured various deals across industries, including partnerships with Stellantis' Jeep and a German EV maker, but did not disclose contract amounts or terms [11] - SoundHound AI's market cap is $5 billion, with a gross margin of 30.02% and a high P/S ratio of 31.5, which raises concerns about its valuation given its net losses [8][10][12]