Three Stocks Built for Long-Term Growth: Lemonade, CoreWeave, and SoundHound AI

Lemonade, CoreWeave, and SoundHound AI are soaring growth stocks that could head even higher. Lemonade's AI-powered insurance app disrupts traditional insurers, with revenue expected to surge 45% from 2024 to 2027. CoreWeave's cloud-based GPUs are in high demand, with revenue increasing from $16 million in 2022 to $1.92 billion in 2024. SoundHound AI benefits from growing AI voice recognition services, with revenue expected to reach $100 million in 2024.

Lemonade, CoreWeave, and SoundHound AI are three companies that have shown remarkable growth in recent quarters, positioning themselves as potential winners in their respective sectors. This article delves into the factors driving their success and explores the potential for continued growth.

Lemonade, Inc. (LMND)

Lemonade, a technology-driven insurance company, reported strong performance in its Q2 2025 results. The company's in-force premium (IFP) grew 29% year-over-year to $1.083 billion, exceeding guidance [1]. This growth was driven by customer expansion, particularly in the European market, where the company is rapidly gaining traction. The company's loss ratio improved to 70%, with auto loss ratios reaching a record low of 82%, demonstrating significant underwriting progress. Management's reduction in reinsurance reliance from 55% to 20% indicates confidence in their models and reserves. Despite adjusted EBITDA remaining negative at $40.9 million, operating expenses excluding growth spend were flat, validating Lemonade's model of combining exponential revenue growth with cost control through AI. With a lifetime value-to-customer acquisition cost ratio above 3x and potential expansion to over 5x as auto scales, current growth investments are laying the foundation for long-term profitability. Management has reiterated EBITDA breakeven by 2026, with hints this could come sooner. European markets present significant upside due to faster adoption of telematics and less dominance by entrenched incumbents, while U.S. auto expansion is gaining traction with improved pricing precision. At current valuation, LMND trades at just 10x projected 2026 gross profit despite expected ~51% annual growth. For long-term investors, LMND offers a compelling risk/reward profile as the only AI-native insurer positioned to disrupt multiple verticals.

CoreWeave, Inc. (CRWV)

CoreWeave, a leading provider of AI cloud infrastructure, has raised its full-year revenue outlook for 2025 to $5.15 billion to $5.35 billion, up from the previous guidance of $4.9 billion to $5.1 billion [2]. This upward revision reflects continued strength in customer demand, driven by the rapid expansion of data centers. CoreWeave closed the second quarter with 470 megawatts (MW) of active power and increased total contracted power to 2.2 gigawatts (GW), aiming to deliver more than 900 MW of active power by year-end. The company's $6 billion data center investment in Lancaster, PA, and a joint venture project in Kenilworth, NJ, are key to meeting rising demand. CoreWeave's launch of RTX PRO 6000 Blackwell GPU instances offers faster AI performance and cost-efficient scalability. The company's contracted backlog reached $30.1 billion, up $4 billion sequentially and doubling year to date, driven by the OpenAI expansion and new wins across enterprises and AI startups. The proposed acquisition of Core Scientific is likely to add 1.3 GW of gross power capacity and drive $500 million in annual run-rate cost savings by 2027 through vertical integration. CoreWeave's strong demand backdrop is expected to lead to third-quarter revenues of $1.26–$1.30 billion and adjusted operating income of $160–$190 million. The company faces fierce competition from Nebius Group N.V. (NBIS) and Microsoft (MSFT), but its rapid expansion and strategic investments position it well to capitalize on the growing demand for AI infrastructure.

SoundHound AI, Inc. (SOUN)

SoundHound AI, a leader in voice-AI and conversational-AI, reported second-quarter 2025 revenues of $42.68 million, beating the Zacks Consensus Estimate by 29.2% [3]. The company's diversified vertical strategy, including automotive, restaurant, healthcare, financial services, and customer support, reduces risk by spreading exposure across multiple sectors. SoundHound's proprietary Polaris models, strategic acquisitions, and integration success provide sustained competitive advantages. The company's growing visibility, driven by the rollout of its Amelia 7.0 autonomous AI agents and partnerships with auto OEMs and enterprise clients, cements its position as a voice-AI leader. SoundHound's full-year 2025 revenue guidance was revised upward to a range of $160-$178 million, signaling continued momentum. Despite GAAP losses and elevated expenses, the company's low stock price of $12.56 as of Aug. 22 presents an opportunity for investors. The company's platform processes almost 3 billion queries per quarter, a testament to expanding deployment and usage across verticals.

Conclusion

Lemonade, CoreWeave, and SoundHound AI are poised for continued growth, driven by their innovative technologies and strategic positioning. As these companies capitalize on the growing demand for AI-driven solutions, investors may want to consider these stocks as potential long-term investments. However, it is essential to conduct thorough due diligence and consider the risks associated with each company before making investment decisions.

References

[1] https://finance.yahoo.com/news/lemonade-inc-lmnd-bull-case-101901793.html
[2] https://finance.yahoo.com/news/coreweaves-upbeat-outlook-expanding-data-132600510.html
[3] https://www.nasdaq.com/articles/soundhound-riding-wave-voice-technology-growth