From Yahoo Finance: 2025-05-26 04:56:00

Broadcom is profitable and leading in the artificial intelligence (AI) semiconductor market, while SoundHound AI is growing sales by 151% but still reporting losses. Both companies are gaining investor attention in the AI sector, with SoundHound’s share price up 85% and Broadcom’s up 64% over the past year.

Broadcom’s application-specific integrated circuits (ASICs) are in demand for AI data centers, benefitting from a booming AI chip market projected to reach $334 billion by 2030. The company’s AI revenue spiked 77% to $4.1 billion in the first quarter, with expectations of further growth in the second quarter.

SoundHound’s conversational AI platform is being embraced by companies for smart tools integration, leading to a 151% sales increase to $29 million. The company is tapping into a growing conversational AI market estimated to be worth $152 billion in the next eight years.

Investors are showing interest in both Broadcom and SoundHound, but Broadcom’s profitability and presence in the lucrative AI semiconductor market make it a top choice. SoundHound, while growing rapidly, is yet to turn a profit, highlighting the tech industry’s focus on growth over profitability.

Overall, both companies offer potential for investors, but Broadcom stands out for its profitability and position in the vast AI semiconductor market. Investors considering Broadcom should be aware of the company’s high stock price and focus on long-term growth and profitability.

Read more: Better AI Stock: SoundHound vs. Broadcom