Better Artificial Intelligence (AI) Stock: SoundHound AI vs. C3.ai

The adoption of artificial intelligence (AI) software is increasing at an incredible pace because of the ductivity and efficiency gains this nology is capable of dering, and the good part is that this niche is ly to sustain a healthy growth rate over the long run

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The case for SoundHound AI SoundHound AI vides a voice AI platform where its customers can create conversational AI assistants and voice-based AI agents that can be deployed for multiple uses, such as taking orders in restaurants, car infotainment systems, and customer service applications, among others

This particular market is growing at a nice clip, as deploying AI-powered voice solutions can help companies imve ductivity and efficiency, since they will be able to automate tasks

Companies can now significantly imve their customer interaction experiences, thanks to the availability of round-the-clock multilingual AI agents and assistants

Not surprisingly, SoundHound AI has been witnessing a robust growth in demand for its voice AI solutions, which explains the solid revenue growth in the past year

SOUN Revenue (TTM) data by YCharts

SoundHound AI has been growing at a much faster pace than the overall market, suggesting it is gaining a bigger of this lucrative space

SoundHound's revenue guidance of $167 million at the mid-point for 2025, is nearly double the revenue it reported last year

This metric is a measure of the potential revenue that the company expects to "realize over the coming several years," suggesting it can maintain its healthy growth rates for a long time to come thanks to the AI-fueled opportunity it's sitting on

Ai is a pure-play enterprise AI software platform vider that enables its customers to build generative AI applications and agentic AI solutions

Air Force for maintaining aircraft, ground assets, and weapons systems for the next four years

However, this is just one of the many contracts that the company has been landing lately

Ai's offerings are used across diverse industries, and its customer base includes the s of Baker Hughes, which recently expanded its partnership with the company; local and state government bodies across multiple U

States; and companies such as Ericsson, Bristol Myers Squibb, Chanel, and others

The company's fast-expanding customer base and the bigger contracts that it is signing with existing customers explain why there has been an uptick in C3

AI Revenue (TTM) data by YCharts

Consensus estimates suggest that C3

AI Revenue Estimates for Current Fiscal Year data by YCharts

There's a strong possibility, however, that C3

Ai will exceed expectations and its own forecast for growth this year

The good part is that the company has been converting its pilots into contracts at a healthy rate

So the robust increase in the company's pilot jects last year means that it could close more such initial duction deployments into full agreements in the current fiscal year, going by past trends

So there is a strong possibility of C3

Ai's growth rate exceeding Wall Street's expectations, which should ideally turn out to be a tailwind for its stock price in the long run

The verdict While it is both SoundHound and C3

Ai are growing at a nice pace because of AI, the former's growth rate is much higher

However, to buy SoundHound stock, investors will have to pay a handsome price-to-sales ratio of nearly 38

Ai, on the other hand, is trading at a much more attractive 8 times sales, which is almost in line with the U

Nology sector's average sales multiple

So, investors looking for a mix of steady growth and attractive valuation can consider buying s of C3

However, if you have a higher appetite for risk and are willing to pay for a stock with a richer valuation, then consider buying SoundHound AI, as its faster growth could help it clock more upside, though the expensive valuation also exposes it to more volatility

Harsh Chauhan has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Bristol Myers Squibb

The Motley Fool recommends C3

The Motley Fool has a disclosure policy.