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There are thousands of publicly traded stocks, and dozens that could be considered artificial intelligence (AI) stocks.
So, let's sift through two of the highest-profile AI stocks around to see which one is the better AI stock to buy right now.
SoundHound AI
First, let's talk about SoundHound AI (NASDAQ: SOUN).
SoundHound is an innovative AI company that develops voice AI systems. They have numerous partnerships with automotive, restaurant, and healthcare providers.
As AI-powered tools become more widespread, users will grow more comfortable communicating with them, and a big part of developing that level of comfort will be talking to an AI system that is virtually indistinguishable from a human voice.
Many are now familiar with conversing with an AI chatbot in our cars, as they help us (safely) do more while driving. However, over the next few years, expect AI chatbots to spring up in other settings, such as retail, healthcare, and finance, as organizations look to drive efficiency by cutting back on labor costs.
All that said, SoundHound remains a young company; it has plenty of potential but has yet to deliver eye-popping fundamentals.
In its most recent quarter (the three months ending on Sept. 30, 2024), the company reported revenue of only $25 million. Net losses amounted to nearly $22 million.
In other words, with SoundHound AI, it's all about the future. The company's revenue is growing at 89% year over year, showing the rising demand for voice AI technology.
Yet, given the company's meager revenue and lack of profitability, SoundHound AI stock isn't a good fit for every investor or portfolio.
Palantir Technolgies
Then there's Palantir Technologies (NASDAQ: PLTR).
Let's get one thing straight right off the bat: Palantir has already arrived.
As of this writing, Palantir boasts a market cap of $190 billion, making it the 48th most valuable American company. For context, its market cap is now larger than Pfizer, ConocoPhillips, Starbucks, and Citigroup, to name just a few.
Palantir's stock has advanced a mind-boggling 500% over the last three years.
Yet, even with all this growth, Palantir remains a company with tremendous potential. That's because it is one of the leaders in an emerging field of AI-powered process mining.
In short, process mining uses AI to find efficiencies, enhance workflows, and improve customer satisfaction. It's like having a brilliant, AI-powered CEO reviewing an organization's data to discover where it can do things better, cheaper, and faster.
In other words, it's something that every organization will be eager to implement.