From Yahoo Finance: 2025-04-30 09:53:00

Palantir is experiencing strong commercial customer growth and secured a large contract with NATO. SoundHound is also making progress by winning clients in the automotive and restaurant sectors. Artificial intelligence remains a key focus on Wall Street and has the potential to be a transformative technology. Both Palantir and SoundHound are emerging AI software companies, with Palantir focusing on data gathering and analytics, while SoundHound specializes in voice-interface technology.

Palantir’s revenue rose by 36% in Q4, and SoundHound’s revenue soared by 101%. Palantir expects revenue growth of about 31% for 2025, while SoundHound anticipates doubling its revenue. Palantir is expanding its commercial customer base and recently secured a significant contract with NATO. SoundHound aims to become a leading voice commerce company across various industries.

Both Palantir and SoundHound are trading at premium price-to-sales multiples. Palantir’s multiple is more than three times that of SoundHound despite the latter’s faster revenue growth. Palantir has a larger market opportunity and faces less competition, making it a preferred choice despite its valuation. Both stocks are speculative, so keep position sizes small.

Read more: Better Artificial Intelligence Stock: Palantir vs. SoundHound AI