Why NVIDIA & SoundHound AI Are Set to Ignite H2 2025: AI's Next Wave is Here
32min readThe AI revolution is not just alive—it's accelerating. As inflation eases and trade optimism returns, two companies—NVIDIA and SoundHound AI—are primed to capitalize on surging demand for advanced AI infrastructure and voice-driven technologies. Both are undervalued relative to their growth trajectories and possess transformative technologies that could power explosive gains in the second half of 2025.
NVIDIA's dominance in AI chips remains unshaken, thanks to its Blackwell architecture. This next-gen platform, now powering 70% of NVIDIA's data center compute revenue, delivers 30–40x faster inference performance than prior systems. Blackwell's NVL72 AI supercomputers—capable of real-time processing of trillion-parameter models—are being deployed by hyperscalers like Microsoft (which plans to install hundreds of thousands of Blackwell units) and sovereign AI initiatives in the EU, Saudi Arabia, and Taiwan.
Despite its $139.99 share price,
Why Now?
- Blackwell's 73% YoY data center revenue growth (Q1 2026 results) signals secular adoption.
- Sovereign AI projects will add “low-double-digit billions” in revenue, shielding NVIDIA from U.S.-China trade tensions.
- The $19.60 price-to-sales ratio by year-end hints at a valuation reset as earnings catch up to multiples.
SoundHound AI: Voice Commerce's Hidden Giant
While NVIDIA fuels the AI backend, SoundHound is revolutionizing the frontend—voice-driven interfaces. Its Q2 2025 revenue surged 151% YoY to $29.1M, fueled by automotive partnerships and healthcare AI. Key wins include:
- Automotive: Stellantis' six global brands (Peugeot, Citroën, etc.) now use SoundHound's Chat AI, with a $600M healthcare AI deal (via Allina Health) and voice commerce partnerships with Burger King UK.
- Agentic AI: Amelia 7.0 enables autonomous tasks like payment processing and medical appointment scheduling, targeting a $140B total addressable market.
SoundHound's $682M backlog (rising to $1.2B by year-end) and $246M cash war chest give it room to scale. Despite a P/S ratio of 20.45 (above its sector's 19.17 average), the stock trades at a 62% discount to its 52-week high, offering a rare entry point. Analysts project $157–$177M in 2025 revenue, a 97% YoY jump.
Why Now?
- Voice Commerce: In-car ordering systems (e.g., with Hyundai/Kia) tap into an $80B market by 2030.
- Healthcare & SMBs: AI solutions for small businesses and hospitals address underserved niches.
- Breakeven in Sight: Management aims for EBITDA profitability by year-end, reducing cash burn by 49%.
Market Catalysts: Why H2 2025 is Crucial
- Easing Inflation & Trade Optimism: Lower interest rates and U.S.-China dialogue could reduce geopolitical drag on tech stocks.
- Blackwell Shipments Surge: NVIDIA's Q4 2025 ramp targets “several billion dollars” in sales, with sovereign AI projects hitting their stride.
- SoundHound's Healthcare & Automotive Rollouts: Deals with Allina Health and EV manufacturers will validate its $140B TAM.
Risks to Consider
- NVIDIA: China's $15B chip ban (leading to $5.5B write-offs) and AMD/Intel's progress in AI chips.
- SoundHound: Execution risks in scaling partnerships and Big Tech encroachment in voice AI.
Final Verdict: Buy the Dip Before the Boom
Both NVIDIA and SoundHound are trading at discounts to their growth potential. NVIDIA's 30.5x forward P/E and SoundHound's $17.98 share price (vs. a $26 analyst target) present asymmetric upside.
Investment Thesis:
- NVIDIA: A 73% YoY data center revenue beat in Q1 2026 suggests Blackwell's adoption is unstoppable. Buy on dips below $140; target $250–$300 by 2026.
- SoundHound: A $140B TAM and 151% revenue growth make it a “best-of-breed” AI voice play. Accumulate below $20; aim for $26+ as healthcare and automotive deals materialize.
The AI revolution isn't slowing—it's just getting started. These two companies are its engines.
Comments
No comments yet