Investors moving to defensive sectors like energy led to AI stocks dropping, but presents buying opportunity.

From Nasdaq: 2025-05-23 06:45:00

The U.S. equity market is volatile in 2025 due to geopolitical tensions and economic shifts. AI stocks have suffered as investors move to defensive sectors like energy. However, this presents an opportunity to buy undervalued AI stocks. SoundHound AI and C3.ai offer strong fundamentals and potential for growth.

SoundHound AI is a leader in voice AI, with advanced solutions and international reach. Financially, revenue surged 151% year-over-year, and the company has no debt. Analysts project strong growth in the voice and speech recognition market, positioning SoundHound for success despite margin compression challenges.

C3.ai invests in enterprise software, with a focus on solving critical challenges using AI. The partnership with Microsoft has driven significant growth, with access to global sales infrastructure. Financially, C3.ai shows promising growth and is trading at a low valuation compared to its peers, making it an attractive investment opportunity.



Read more at Nasdaq: 2 Super AI Stocks Down 62% and 88% You’ll Regret Not Buying on the Dip in 2025