The AI revolution is upon us, folks. And by “upon us,” I mean it’s projected to become a $4.8 trillion juggernaut by 2033, according to some UN report I’m sure is either wildly optimistic or about to be overshadowed by the latest TikTok trend. Either way, this is a solid reason to have a few AI stocks sprinkled into your portfolio. Not all of them will become trillion-dollar behemoths overnight, but these two might just surprise you — in a good way, not the “Oh, no, my retirement is going to fund a new startup in Nebraska” way.
1. SoundHound AI
First up, we have SoundHound AI (SOUN), which creates voice AI products for businesses trying to make us talk to computers instead of humans (I mean, same). They offer AI solutions for everything from hospitality to healthcare, all the way to in-car systems that make your vehicle feel like a reluctant, judgmental therapist. As of today, 13,000 restaurants use SoundHound’s voice-powered ordering. Because who doesn’t want their pizza to be just a little less human?
The numbers? Oh, they’re looking good. Revenue up by 151% year over year to $29 million in Q1 2025. You’d think that’s the beginning of something magical, right? Unfortunately, they also have a slightly worrying loss, ballooning from $89 million in 2023 to $351 million in 2024. It’s like your startup cousin who swears they’ll be rich next year and yet still borrows rent money. Classic. But hey, it’s early days, and the AI space is a long-game type of deal. They’re just getting warmed up.
But here’s the thing — SoundHound has been at this whole voice-AI thing for decades. They’ve got proprietary technology that actually works, unlike some of the other flash-in-the-pan startups that make us sound like we’re talking to a toaster. And their target market? It’s set to grow at nearly 35% annually, eventually hitting $47.5 billion by 2034. So, yeah, they might just hit a grand slam in the next few years. Of course, that all depends on whether they stop burning money like it’s the hottest new trend. Currently, the stock is trading at a P/S ratio of 42, which, let’s be real, sounds like the price of admission to a futuristic party no one’s really sure they want to attend.
Despite an 836% stock price increase in 2024, this year has seen a rough patch with a 40% dip. But hold up — they’re sitting on a $1.2 billion backlog of subscriptions and bookings. Translation: they might have some pretty hefty deals in the works that could eventually smooth things over. With big players like Nvidia and Qualcomm already partnered with them, if they manage to pull it all together, SoundHound could easily take off. But like any good startup, it’s a risky ride. Buckle up.
2. Applied Digital
Next, we’ve got Applied Digital (APLD), a smaller AI company that operates in the world of data centers. Yes, it’s not as glamorous as a robot butler, but you need these places to house all the AI magic. Applied Digital designs, builds, and runs the very infrastructure that tech giants use to deploy their AI dreams. So, while it might not be the sexiest stock out there, it’s got some solid back-end power that will keep everything humming.
Now, here’s the thing with Applied Digital — they’re growing. Their fiscal third-quarter 2025 revenue came in at $52.9 million, which was a 22% increase from the previous year. Nice, right? But they’ve also been losing money consistently, with a net loss of $35.6 million in Q3. It’s like buying a fixer-upper house and knowing it’s going to cost a lot to make it livable. But the payoff could be huge once it’s done.
Recently, Applied Digital made some bold moves. In April, they announced they would sell off their cloud services business (goodbye, $10.3 million loss), and pivot to becoming a data center real estate investment trust (REIT). Basically, they’re betting big on owning the infrastructure that will power the AI revolution. Sure, it’s risky. But if they manage to pull it off, they’ll be in the perfect spot to service the insatiable power needs of AI applications.
Oh, and they’re building a fancy new data center in Ellendale, North Dakota, which will eventually scale up to a 1 gigawatt power capacity (because apparently, regular power isn’t enough anymore). In addition, they recently struck some pretty hefty lease deals with CoreWeave, estimated to bring in around $7 billion in revenue. So while the upfront costs are massive, Applied Digital could be positioned to deliver exactly what AI companies need: power, infrastructure, and a lot of room to grow. All things considered, this one could make a real splash.
So there you have it, folks. If you’re looking for a couple of stocks that might just go parabolic in the AI sector, SoundHound and Applied Digital could very well be the ones to watch. Just don’t forget — this is the wild, unpredictable world of AI investing. You might get lucky, or you might end up with a pile of stock certificates that look like the punchline of a bad joke. But hey, no one ever got rich by playing it safe, right?
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2025-07-30 14:31