Artificial intelligence (AI) stocks are some of the hottest names on Wall Street. Palantir Technologies and Nvidia have ridden the AI wave to amazing heights, surging by 900% or more in just a few years.However, it's still possible to find AI stocks that are not at all-time highs. For example, SoundHound AI (SOUN -4.73%) is almost 50% off its all-time high. Is its stock a buy? Let's find out. What does SoundHound AI do?The company is leader in the development and deployment of voice-powered AI systems. Thes ...

Key Takeaways C3.ai rose 17.8% in three months, outperforming SOUN, its industry, and the broader market. C3.ai secured a $450M Air Force deal and grew partner-led bookings 419% in 4Q25. SOUN posted a 151% revenue surge in Q1, aided by acquisitions and voice AI platform expansion.C3.ai, Inc. (AI) and SoundHound AI, Inc. (SOUN) are pure-play AI companies riding the artificial intelligence investment wave. C3.ai focuses on enterprise AI applications, whereas SoundHound specializes in voice and conversationa ...

Core Insights - SoundHound AI, a developer of AI-powered audio recognition tools, experienced a significant stock decline of nearly 60% after reaching a record high of $24.23 on December 26, 2024 [1][2] Company Performance - SoundHound AI's revenue surged 47% in 2022, another 47% in 2023, and jumped 85% in 2024, primarily driven by its developer platform Houndify [5] - The company ended 2024 with a backlog of $1.2 billion and serves major clients including Stellantis, Chipotle, MUSC Health, and Tencent [9] - For 2025, SoundHound expects a revenue surge of 97%, with analysts projecting a compound annual growth rate (CAGR) of 48% from 2024 to 2027, increasing revenue from $85 million to $277 million [11] Market Position and Strategy - Houndify powers voice recognition features in various sectors, including restaurant ordering platforms, smart TVs, and connected cars, appealing to companies seeking alternatives to major tech giants [4] - The company has made several acquisitions, including SYNQ3, Allset, and Amelia, which have strengthened its position in the restaurant industry but also indicated limited organic growth potential [6] Financial Challenges - SoundHound AI's adjusted EBITDA margins were negative 73% last year, missing its target of achieving positive adjusted EBITDA by 2024 [7] - The company's market cap stands at $4.1 billion, trading at 25.5 times this year's sales, with concerns about stock dilution due to increased share count since its SPAC merger [12] Industry Outlook - The global voice agents market is projected to grow at a CAGR of 34.8% from 2025 to 2035, indicating significant expansion opportunities for SoundHound AI as companies increasingly adopt AI-powered solutions [10]

Industry Overview - The AI industry presents significant growth opportunities, with the overall market expected to grow at an annualized rate of nearly 20% through 2034 according to Precedence Research [1][2]. Company Analysis Arm Holdings - Arm Holdings is a semiconductor design company that licenses chip designs to other manufacturers, generating approximately $4 billion in high-margin revenue annually [6]. - The company is well-positioned in the AI sector due to its power-efficient chip designs, which are crucial as AI technology becomes more mainstream and power-hungry [8][9]. - Arm's revenue is projected to grow around 20% per year over the next three years despite macroeconomic uncertainties [9]. SoundHound AI - SoundHound AI specializes in advanced voice communication technology, having developed its proprietary AI platform, Houndify, since 2015 [12]. - The company is positioned to capture significant growth in the voice-based AI market, which is expected to expand at an annualized rate of nearly 35% through 2034 [14]. - SoundHound's first-quarter revenue increased by 151% year-over-year, showcasing its strong growth trajectory [15]. BigBear.ai - BigBear.ai focuses on AI-powered decision-making software primarily for the private sector, targeting industries such as manufacturing, healthcare, and biopharma [18][19]. - The decision-making segment of the AI industry is forecasted to grow at an average annual pace of 16% through 2034 [20]. - Analysts have set a consensus price target of $6.63 for BigBear.ai, nearly double its current stock price, indicating potential upside for investors [21].

Which of these volatile AI stocks is a better investment right now?SoundHound AI (SOUN -1.90%) and Palantir Technologies (PLTR 2.15%) are both well-positioned to profit from the rapid growth of the artificial intelligence (AI) market. SoundHound develops AI-powered speech and audio recognition tools, while Palantir's AI-driven data mining services help government agencies and large companies make faster and smarter decisions.SoundHound went public by merging with a special purpose acquisition company (SPAC) ...