2 AI Stocks Poised for Significant Growth: SoundHound AI and Applied Digital

The global AI market is projected to reach $4.8 trillion by 2033. Two AI stocks with growth potential are SoundHound AI and Applied Digital. SoundHound creates voice AI products for various industries, with revenue up 151% YoY to $29 million in Q1 2025. However, the company has been operating at a loss and has a high P/S ratio. Applied Digital designs and operates data centers for tech companies to deploy AI applications, with revenue growing. Both stocks are risky but have the potential for significant growth.

The global AI market is projected to reach $4.8 trillion by 2033, presenting immense opportunities for growth in the tech sector. Two AI stocks with significant potential are SoundHound AI and Applied Digital. Both companies are poised to benefit from the expanding AI market, albeit with varying financial profiles.

SoundHound AI

SoundHound AI creates voice AI products for various industries, with a strong focus on voice recognition and natural language processing. In the first quarter of 2025, the company reported a revenue increase of 151% year-over-year (YoY) to $29 million. This robust growth is a promising sign of the company's ability to capitalize on the expanding AI market.

However, SoundHound AI has been operating at a loss, with a high price-to-sales (P/S) ratio. The company's financial health is a critical factor to consider for investors, as it indicates the company's current profitability and valuation. Despite the losses, SoundHound AI's strong revenue growth suggests that the company is making significant strides in its AI solutions, which could translate into profitability in the future.

Applied Digital

Applied Digital designs and operates data centers for tech companies to deploy AI applications. The company has been experiencing revenue growth, although the specific figures are not provided in the reference materials. Data centers are a crucial component of AI infrastructure, and Applied Digital's role in this sector positions it well for growth as AI adoption continues to rise.

While Applied Digital's revenue growth is promising, the company's financial health is not as well-documented as SoundHound AI's. The lack of detailed financial information makes it more challenging to assess the company's overall financial stability and potential for profitability.

Risk and Potential

Both SoundHound AI and Applied Digital are risky investments due to their high P/S ratios and, in the case of SoundHound AI, operating losses. However, the potential for significant growth in the AI market makes these stocks attractive for investors seeking high returns.

SoundHound AI's strong revenue growth and innovative AI solutions position it well for future success, despite its current financial challenges. Applied Digital's role in the critical AI infrastructure sector also suggests potential for growth, although its financial health is less clear.

Conclusion

The AI market's projected growth presents exciting opportunities for investors. SoundHound AI and Applied Digital are two stocks with significant growth potential, although they come with risks. Investors should carefully consider the financial health and growth prospects of these companies before making investment decisions.

References

[1] https://www.fool.com/investing/2025/07/25/1-unstoppable-artificial-intelligence-ai-stock-to/
[2] https://crypto.news/how-ozak-ai-could-turn-500-into-1-million/