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Trending News:China is putting security measures in place to try to reassure the country on the brinkTraders fear that Trump’s diplomacy will put cross-border deals on iceWhy Wolfspeed Stock Is Soaring TodayJSK vs PC, SA20 2025: Match Prediction, Dream11 Team, Fantasy Cricket Tips and Pitch Report | Joburg Super Kings vs Pretoria CapitalsIn the AI copyright case, Zuckerberg turned to YouTube for his defenseMom Kia Brooks posts pro bono bid for $1.5 million Flau’jae Johnson custom diamond earringsLizzie Peake: Biden keeps putting lipstick on his presidential pig. You won’t believe the resultsIn his farewell speech, Joe Biden told Americans to ‘beware’ of the oligarchyBiden warns of the formation of an oligarchy in the US that threatens democracy By ReutersAustralia’s unemployment rate rises to 4% in DecemberTeofimo vs. Garcia in May? “Let the game begin!”The Nokia Design Archive contains 20 years of previously unseen images, sketches and strategiesNewcastle 3 – 0 WolvesThousands across Gaza celebrate ceasefire announcement | Gaza News1/15: CBS Evening News – CBS NewsThe first congestion pricing scheme in the US brought a drastic reduction in traffic in NYWall Street traders hold their breath ahead of CPI: Markets get mixed upBCCI considers restoring Virat Kohli’s captaincy policy to revive Indian team in troubled timesToday’s NYT Mini Crossword Answers for Jan. 16Powerful Webb telescope snaps picture of one of the earliest supernovae everThursday Briefing – The New York TimesPriority Announces Pricing of Second Common Stock Offering Via Investing.comThursday’s Economic Calendar | Looking for AlphaRavichandran Ashwin confirms Australia’s winner in Test series against IndiaTired of Florida Cold, Manatees Post Up Power Plant DischargeBrad Pitt, the French woman tricked by artificial intelligence, faces ridicule onlineHe impeached South Korean President Yoon to avoid further scrutiny over a proposal to impose martial lawROSEN, A LEADING LAW FIRM, Urges Five9, Inc. Investors to Secure Advice Before Important Securities Class Action DeadlineThe German economy contracted for the second consecutive year in 2024Leicester City 0 – 2 Crystal PalaceMany teens report using ChatGPT for schoolwork, despite technology flawsCan Russia and Iran challenge the Western-dominated global order? |TV showsLos Angeles ‘Red Flag’ wildfire warnings end, but dangers remain By ReutersMacy’s wants Bloomingdales and Bluemercury to stayRohit Sharma ignores BCCI’s Ranji Trophy order? MCA official talks about uncertainty over captain’s availabilityThe Acura RSX calls dibs on Honda’s proprietary Asimo OSMan shot five times as girlfriend acted as ‘human shield’ during carjacking in WashingtonNegotiators reached an agreement on a ceasefire and hostages for GazaBOJ to raise rates by end of March, most analysts expect January hike – Reuters poll By Reuters‘Applied for over 1,000 jobs…’: Harvard and Stanford MBAs face shocking unemploymentWasteful Leicester City ruined by clinical palaceEverything you need to know about Niki Prasad – Captain of the Indian team in the 2025 U19 Women’s T20 World CupBest Internet Provider in Corona, CaliforniaGaza’s long-overdue ceasefire may stop killings but won’t end conflictIsrael and Hamas have reached an agreement on a ceasefire, according to which the fighting will end and the hostages will be releasedThe US is weighing options to keep TikTok operating as the ban nears, reports NBC By ReutersWe have to temper expectationsHaney and Garcia will rematch in October, with the trilogy set to take place in 2026, both in Saudi ArabiaFire and Ashes, Promises to ‘Get Your Blood Rising’Israel’s war on Gaza: 15 months, 15 pictures | Gaza NewsBiden and Trump are defying their history of animosity to broker a cease-fire in Gazai-80 Gold Completes Conditions to Amend and Amend Convertible Credit Agreement with Orion By Investing.comFDA seeks to curb nicotine levels in cigarettes, other products with new ruleBlackburn 3 – 0 PortsmouthMXI vs YXI Dream11 Today’s Prediction Match 29 Pondicherry T10 2025The Madcap Rise of the Memecoin Factory Pump.Fun‘Lying to the country’: Trump rails against Biden for taking credit for ceasefire dealThe father of an Israeli-American hostage expected to be released has reacted to the ceasefire dealBank of Korea unexpectedly holds policy rate amid winning slide By Reuters‘9 years, ₹35,000 salary’: Bengaluru techie compares stint at top IT firm to ‘unchained slavery’“What’s their mentality there?”Jasprit Bumrah responds to claims of ‘advised to stay at home on bed rest’ for Champions TrophyWhy global stars are flocking to India nowNegotiators reached an agreement on a ceasefire and hostages for GazaJoe Biden said that the ‘oligarchy’ that has emerged in the US in the last speech at the White HouseThe best Warren Buffett stocks to buy with $1,000 right nowLiverpool’s best ever January 5 signingRangers 3 – 0 AberdeenAI Threat Modeling: Securing Identities with Zero Trust in 2025Vague wording of Israel-Hamas ceasefire text could be problematic: analyst on Israeli-Palestinian conflictSelected French Films: A Gender-Adjusted Retelling of ‘The Three Musketeers’Australia’s December jobs beat previous forecasts, near-term rate cut seen possible By ReutersIncyte, Syndax Gets FDA Clearance for Niktimvo 9mg and 22mg VialsDV vs MIE, ILT20 2025: Match Prediction, Dream11 Team, Fantasy Cricket Tips & Pitch Report | Desert Vipers vs MI Emirates Team Historical ScoreLG Display’s new OLEDs are brighter and more power efficientOhio State player, TikTok star fired ahead of national championship game against Notre DameBreaking down Trump’s involvement in ceasefire talksIsrael, Hamas ceasefire agreement followed by airstrikes in Gaza, residents say ReutersConservatives score another win after BlackRock kills membership of ‘Net Zero’ climate pledgeHow Arsenal’s next five Premier League fixtures compare to Liverpool’sEverton boss David Moyes must find solution to Iliman Ndiaye conundrum – Premier League make-or-break football newsFrom snowy city to Mexican borderBritish man released from prison due to mistaken identification on videomineralys therapeutics CFO Adam Levy sold $97,863 worth of stock By Investing.comShark Tank update: ‘Sharks have a backbone’, social media users say as Gaurav Taneja’s BeastLife loses dealBluesky Gets Its Own Instagram Alternative Called FlashesWhat is included in the first phase of the ceasefire agreement between Israel and Hamas?Economic consequences of the war in GazaAzul, Gol inch closer to potential tie-up to form major Brazil airline By ReutersCan these artificial intelligence (AI) stocks maintain their meteoric growth trajectory?Two goals in four minutes earn Arsenal crucial derby winAI Agents Are Here. How Big Should We Make Them?World reacts to Israel-Hamas ceasefire, leaders express relief, optimismBiden celebrates ceasefire deal in farewell speechUS issues new round of sanctions against Russia ahead of Trump’s return to the White House By ReutersTrump’s DoE Pick Pledges to ‘Unleash’ LNG and Nuclear Power by Cutting Red Tape (NYSE: LBRT)Everything you need to know about Abi Norgrove: England captain at ICC U19 Women’s T20 World Cup 2025Chinese AI company MiniMax has released new models that it claims compete with the best in the industryWhy Somalilanders are fascinated by Donald TrumpWhat you need to know about the ceasefire in Gaza
The broader US stock market has enjoyed a remarkable run since artificial intelligence (AI) emerged as a game changer in early 2023. S&P 500 it has soared more than 50% in the past two years. However, some AI actions have made these gains look like child’s play.
Since the beginning of 2023, social media giant Metaplatforms(NASDAQ: META) has soared more than 400%, a mind-blowing performance for such a large company. SoundHound AI(NASDAQ:SOUN)an emerging player in audio AI technology, has outperformed it with nearly 700% returns. Surprisingly, software company Palantir Technologies(NASDAQ: PLTR) it has surpassed them all, galloping more than 900% in just 24 months.
These meteoric growth trajectories are not unique to the stock market. So do they have the extraordinary fundamentals to justify their returns? Or, more importantly, can they continue? The answer is a mixed bag.
Much of what you’ve seen about AI has involved text-based prompts, but conversational AI—the ability to talk to it (and have it respond)—is central to how AI can affect everyday life. SoundHound AI specializes in audio and conversation-based AI technology. This is more complex because it involves the intelligence to think and generate responses, in addition to the intelligence to understand and translate an audio message into machine data.
SoundHound AI got its start in the automotive industry. You may be familiar with speaking commands to your vehicle while driving. The company has since expanded into the restaurant industry, powering conversational AI for ordering and ordering. However, the potential for expansion is enormous, including almost any application with human agents. Consider call centers, retail, and customer service in many industries.
The company’s revenue grew 89% year-over-year in the third quarter, and management raised guidance for the fourth quarter. Unfortunately, this growth is on a small scale; Third quarter revenue was just $25.2 million. Meanwhile, the stock has a business value of $5.1 billion, versus 2025 revenue estimates of $164 million. That’s a ratio of 31, which makes SoundHound very expensive today. It could be difficult for the stock to continue at its current pace, so potential shareholders should look for a pullback before buying.
AI software will affect almost every industry in the future, so there’s a huge opportunity ahead for Palantir Technologies. The company’s AIP platform for developing and deploying AI applications has lit a fire under the business. Revenue growth has accelerated for several quarters, and the company still only has 629 commercial customers. There are hundreds of thousands of large companies worldwide (potential customers), so Palantir’s long-term ceiling is very high.
Unlike many speculative AI stocks, Palantir is already very profitable. The company turns 37% of its revenue into free cash flow, adding to a balance sheet with $4.5 billion and zero debt. Also, the business is comfortably profitable under generally accepted accounting principles (GAAP). Palantir’s rise should surprise no one; is a highly profitable and fast-growing AI innovator.
Palantir’s only problem is that its stock has gotten too far ahead of the business. The stock price has grown over 900%, but the company has not. Today, Palantir trades at a PEG ratio of 5. It’s an excellent business, but I don’t like paying beyond PEG ratios of 2 to 2.5 even for the best stocks. Investors probably shouldn’t expect the stock to continue rising the way it has until the valuation cools a bit.
Social media giant Meta Platforms is the biggest company on this list (by far), with a market cap of $1.5 trillion. Even so, the company has the financial resources to do so. Meta generates more than $156 billion in annual revenue and more than $50 billion in cash flow. Its core business is digital advertising, monetizing the billions of people who use Facebook, Instagram, WhatsApp and Threads.
Meta is deeply involved in AI technology, including massive investments in data centers, an open source AI model (Llama), and an entire business unit dedicated to AI and metaverse products and services (Reality Labs) . Meta has already developed AI tools to help advertisers get more for their ad spend, increasing Meta’s pricing power and driving core business growth.
The stock’s PEG ratio is just 1.3 today, so Meta’s valuation could expand further before it becomes a concern. Meanwhile, analysts estimate that Meta will grow revenue by 18% annually over the long term. Investors may not see another 400% run over the next two years, but 40% to 50% seems possible. This could keep Meta on its market-beating trajectory for a while longer.
Before you buy shares in SoundHound AI, keep this in mind:
The Motley Fool Stock Advisor The team of analysts has just identified what they think they are 10 best stocks because investors are buying now… and SoundHound AI was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $807,495!*
Stock advisor offers investors an easy-to-follow plan for success, including guidance on building a portfolio, regular analyst updates, and two new stock picks every month. TheStock advisorservice has more than quadrupled the return of the S&P 500 since 2002*.
Randi Zuckerberg, former CMO and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Palantir Technologies. The Motley Fool has one disclosure policy.
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