The dramatic rise in tech stocks over the past two years has enriched many investors, and while celebrating successes with companies like Nvidia, Alphabet, and Palantir Technologies, it’s crucial to seek the next big opportunity. Remarkably, Palantir’s market cap soared from under $50 billion in 2022 to $431 billion today, with its stock gaining 2, 210% since July 2022. If it gained another 2, 210% in three years, it would reach a $10 trillion market cap—double that of current leader Nvidia—though such growth is unrealistic. To find an AI stock with similar potential, one with substantial growth ahead must be identified, such as SoundHound AI (SOUN), a company I once viewed skeptically. SoundHound AI offers an AI platform enabling voice conversations to access voice-enabled services and apps. Although voice technology has existed for years—seen in automated customer-service calls and voice assistants like Siri and Alexa—early versions were often frustrating. Public since 2021, SoundHound primarily served automotive and restaurant sectors but took a leap in 2024 by acquiring Amelia AI for $80 million, an AI agent customizable for internal or public use. This acquisition increased SoundHound’s client base to over 200. However, the company has yet to turn a profit, and shares have dropped over 40% this year, possibly due to concerns following a third-quarter report showing a $109. 3 million net loss—much higher than the $21. 7 million loss a year prior—but largely impacted by a $66 million noncash accounting charge from past acquisitions.

Adjusted net loss was $13 million, an improvement, and the company ended the quarter debt-free with $269 million cash on hand. SoundHound is expanding its clientele through multiple deals, including integrating its Chat AI into millions of AI-enabled smart devices by an unnamed Chinese company, installing voice AI in an Italian commercial vehicle fleet, expanding contracts with leading financial firms, deploying its Amelia platform in a U. S. regional hospital system, supplying voice-ordering tech to a national restaurant chain, and partnering with a telecommunications provider serving 20 U. S. states. Analysts surveyed by Yahoo!Finance unanimously expect SoundHound’s stock to rise over the next year, with an average price target of $17. 19—53% above its current $11. 02 price—and a low estimate of $15, 33% higher. While SoundHound may not replicate Palantir’s rapid ascent, the two share similarities; in Q2 2022, Palantir was also unprofitable with a $179. 3 million net loss while scaling its platforms. SoundHound’s management has broadened its business scope to cover customer service, sales, marketing, operations, and IT service management, enabling over 10 billion personalized automated voice conversations yearly. As companies increasingly seek efficient, AI-driven solutions to streamline offerings while maintaining personalized customer interactions, SoundHound AI is poised for continued growth. Having previously doubted the company, I now believe that once SoundHound transitions from losses to profits, its stock could soar significantly within the next few years.