From Yahoo Finance: 2025-04-29 10:00:00

The AI sector has seen growth with companies like SoundHound AI and C3.ai going public. SoundHound focuses on voice-activated AI, while C3.ai provides AI solutions for organizations. Both are poised to benefit from the industry’s projected growth to $826 billion by 2030.

SoundHound aims to simplify tech interactions with voice-activated AI embedded in consumer devices. The company had 85% revenue growth in 2024 and forecasts $157-177 million in sales for 2025. However, it ended 2024 with a net loss of $350.7 million.

C3.ai tackles complex challenges with AI solutions for organizations like financial institutions and utility companies. It reported a 26% revenue increase in Q3 and projects $383.9-393.9 million in revenue for 2025. Yet, like SoundHound, it remains unprofitable.

SoundHound and C3.ai show promise in the AI market, but SoundHound’s focus on consumer tech and fiscal prudence make it a better investment choice. Despite both companies being unprofitable, their strong sales growth suggests potential for future profitability. SoundHound’s lower P/S ratio also indicates better value.

C3.ai’s reliance on partnerships poses a risk to its revenue if partners underperform or leave. This uncertainty, along with SoundHound’s fiscal responsibility and profitability goals, makes SoundHound a more appealing AI investment. However, watch out for SoundHound’s elevated share price before buying.

Consider the Motley Fool’s top 10 stock picks for potential high returns. SoundHound AI wasn’t on the list, but past picks like Netflix and Nvidia have shown significant gains. Stock Advisor’s total average return of 872% outperforms the S&P 500, making it worth considering for investment guidance.

Read more: Better Artificial Intelligence (AI) Stock: SoundHound AI vs. C3.ai