SoundHound AI, Inc.

Слабый индекс, значительно упал. Быки ослабили, но сохранили уверенность в своих позициях.

Weak index, significantly down. The bulls weakened but remained confident in their positions.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, значительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, significantly up. Outflow of funds from longs at a high level.

Kratos (NASDAQ: KTOS), SoundHound AI (NASDAQ: SOUN), and Nebius (NASDAQ: NBIS) are entering compelling markets, but the next phase depends on proving that growth can withstand cheaper competition. Discover the operating metrics that could validate each bull case, from unmanned systems demand to AI margins and infrastructure payback.
Stock prices used were the market prices of Sept. 28, 2026. The video was published on Oct. 16, 2026.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Should you buy stock in Nebius Group right now?
Before you buy stock in Nebius Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nebius Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
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*Stock Advisor returns as of October 17, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kratos Defense & Security Solutions and SoundHound AI. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

The Biggest Risk Facing These 3 High-Growth Stocks Isn't Demand

SoundHound AI (NASDAQ: SOUN) has a much larger enterprise opportunity after acquiring LivePerson. The critical question is whether OASYS can turn that expanded customer reach into cross-selling, higher recurring revenue, and improved economics before losses, declining legacy revenue, and dilution weigh on the story.
Stock prices used were the market prices of Sept. 24, 2026. The video was published on Oct. 10, 2026.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 10, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is SoundHound AI a Buy After the LivePerson Deal?

Key Points
IonQ is a leader in trapped-ion quantum computing hardware with triple-digit revenue growth.
SoundHound AI is rapidly expanding its voice and conversational intelligence footprint through strategic enterprise acquisitions.
Which of these high-growth disruptors is the better fit for your portfolio in 2026?
The search for explosive growth often leads investors to IonQ (NYSE:IONQ) and SoundHound AI (NASDAQ:SOUN). Each company is pioneering a different frontier of the modern technological landscape to capture market share.
IonQ specializes in the complex world of quantum hardware, while SoundHound AI focuses on conversational artificial intelligence. Both represent high-risk, high-reward opportunities for those interested in emerging technologies. This comparison explores which business model and financial profile offer a more compelling path forward for retail investors.
The case for IonQ
IonQ develops trapped-ion quantum computing, quantum networking, sensing, and security solutions. In its latest annual report, the company details how it offers Quantum-Computing-as-a-Service through major cloud providers like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). It also maintains a presence on the Google Cloud Marketplace. As IonQ advances its footprint in the tech stocks landscape, it recently acquired SkyWater Technology to establish an internal secure quantum foundry. This move helps the company manage its own supply chain and hardware development.
In FY 2025, revenue reached nearly $130.0 million, which is a significant increase from roughly $43.1 million in the prior year. This represents revenue growth of approximately 201.9% as the company scales its commercial operations. However, the company reported a net loss of nearly $510.4 million for the same period. This resulted in a net margin of close to -392.6%. The company continues to spend heavily on research and development to maintain its technological edge.
As of its December 2025 balance sheet, the debt-to-equity ratio is 0.0x. This means the company carries no debt relative to its shareholder equity. The current ratio stands at roughly 15.5x, which indicates that IonQ has many more current assets than current liabilities. Free cash flow for the period was negative $299.6 million, as the company prioritized building out its hardware infrastructure. Free cash flow is calculated by subtracting capital expenditures from cash provided by operations.
The case for SoundHound AI
SoundHound AI delivers voice and agentic AI software that delivers conversational experiences across various industries. These include the automotive, hospitality, and retail sectors where voice interaction is becoming a standard feature. In late 2026, the company completed the acquisition of LivePerson to expand its enterprise AI and omnichannel customer engagement capabilities. The company integrates its platform with existing third-party telecommunications and internet infrastructure to serve enterprise customers. Its technology is found in everything from smart devices and televisions to in-vehicle systems.
In FY 2025, revenue was close to $168.9 million, representing a 99.4% jump from the approximately $84.7 million reported in 2024. Despite this rapid growth, the company reported a net loss of nearly $14.0 million. This reflects a net margin of approximately -8.3% for the fiscal year. This margin is a significant improvement from the much larger losses reported in previous fiscal periods. The company is working toward achieving profitability as it expands its footprint in the voice AI market.
According to its December 2025 balance sheet, SoundHound AI has a debt-to-equity ratio of 0.0x. The current ratio, which measures the company's ability to cover its short-term debts with short-term assets, is roughly 4.6x. Free cash flow was negative $103.1 million for the year. This figure is determined by taking cash from operations and subtracting capital expenditures. The company continues to invest in its agentic AI platform to stay ahead of evolving consumer demands.
Risk profile comparison
IonQ faces risks from the unproven nature of scalable quantum computing. It relies heavily on specialized personnel and faces complex international regulatory laws. Significant historical losses require the company to potentially seek more capital.
SoundHound AI deals with high customer concentration and intense competition from companies like Nvidia (NASDAQ:NVDA). It has also disclosed material weaknesses in internal controls over financial reporting. There are also legal risks regarding the accuracy of its generative AI tools.
Valuation comparison
SoundHound AI is cheaper based on its P/S ratio, which measures market value against sales over the past twelve months.
Metric
IonQ
SoundHound AI
P/S ratio
66.8x
13.1x
Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with IonQ, though this is a speculative pick that comes with real caveats. Both companies are early-stage and unprofitable, and IonQ's losses are substantial, as it is burning through cash at a significant pace to achieve its current scale.
IonQ's revenue guidance jumped dramatically this year, though much of that increase reflects the SkyWater acquisition rather than purely organic quantum contract wins. The backlog is expanding, but quantum projects are tied to multi-year research milestones that do not always convert to cash on a predictable schedule.
SoundHound is making steady progress, and the voice AI platform is finding traction in ways that are starting to show up in the numbers. Revenue grew at a strong double-digit rate in the most recent quarter, and enterprise deals are accumulating across healthcare and automotive.
For an investor willing to accept significant volatility, IonQ's diversified customer base and expanded manufacturing capabilities make it the slightly more grounded of these two highly speculative bets.
Should you buy stock in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,403,292!*
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*Stock Advisor returns as of October 1, 2026.
Sara Appino has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, IonQ, Microsoft, Nvidia, and SoundHound AI. The Motley Fool has a disclosure policy.

IonQ vs. SoundHound AI: Which Tech Stock Is a Better Buy in 2026?

Key Points
SoundHound AI currently demonstrates a stronger position on revenue, having surpassed BigBear.ai and maintaining that advantage consistently through the most recent quarters.
While BigBear.ai experienced noticeable quarter-over-quarter declines before settling into a slightly more stable pattern recently, SoundHound AI recorded a reliable trajectory of sequential quarter-over-quarter growth over the identical timespan.
Investors should watch whether the revenue gap between the two companies continues to widen in upcoming quarters, or if the trend reverses.
BigBear.ai: Attempting to Stabilize an Uneven Revenue Trend
BigBear.ai (NYSE:BBAI) provides technology consulting and advanced data analytics solutions to help clients make informed decisions around national security and defense.
It secured national approval in the Netherlands for airport security software and expanded its customized generative artificial intelligence capabilities for defense missions, while also appointing a retired military general to its Board of Directors.
SoundHound AI: Consistent Upward Trend in Quarterly Revenue
SoundHound AI (NASDAQ:SOUN) develops custom voice-assistant technology that enables companies to create conversational experiences for consumers.
It finalized a stock-based acquisition of LivePerson, an omnichannel conversational provider, and launched a fully embedded voice system for vehicles, while concurrently expanding automated voice ordering integrations for restaurant management software.
Why Revenue Matters for Investors
Revenue serves as a primary baseline for investors to evaluate fundamental business growth. It reveals whether a company is successfully attracting customers and growing its overall business volume over time.
Quarterly Revenue for BigBear.ai and SoundHound AI
Calendar quarter
BigBear.ai Revenue
SoundHound AI Revenue
Q3 2024
$41.5 million (quarter ended Sept. 30, 2024)
$25.1 million (quarter ended Sept. 30, 2024)
Q4 2024
$43.8 million (quarter ended Dec. 31, 2024)
$34.5 million (quarter ended Dec. 31, 2024)
Q1 2025
$34.8 million (quarter ended March 31, 2025)
$29.1 million (quarter ended March 31, 2025)
Q2 2025
$32.5 million (quarter ended June 30, 2025)
$42.7 million (quarter ended June 30, 2025)
Q3 2025
$33.1 million (quarter ended Sept. 30, 2025)
$42.0 million (quarter ended Sept. 30, 2025)
Q4 2025
$27.3 million (quarter ended Dec. 31, 2025)
$55.1 million (quarter ended Dec. 31, 2025)
Q1 2026
$34.4 million (quarter ended March 31, 2026)
$44.2 million (quarter ended March 31, 2026)
Q2 2026
$36.7 million (quarter ended June 30, 2026)
$61.9 million (quarter ended June 30, 2026)
Data source: Financial Modeling Prep. Data as of Sept. 25, 2026.
Foolish Take
An examination of the revenue trends between artificial intelligence companies SoundHound AI and BigBear.ai reveal important insights that investors should know about. Back in 2024, BigBear.ai's sales were far greater than SoundHound AI's, yet since then, the situation has reversed.
This turn of events indicates SoundHound's business is expanding, while a contraction occurred to BigBear.ai, which is a concern considering the AI sector is growing rapidly right now. This suggests BigBear.ai's solutions may not be compelling enough to produce the outsized growth expected of young software companies.
That said, both SoundHound and BigBear.ai experienced year-over-year sales growth in the second quarter thanks to acquisitions. The former purchased a number of businesses in recent years, with LivePerson being the latest, and this helped SoundHound surpass BigBear.ai in sales. The latter's Q2 revenue of $36.7 million represented a 13% year-over-year increase due to its acquisition of Ask Sage, an AI platform built for government agencies.
Even so, SoundHound raised its 2026 full-year revenue outlook to a range between $230 million and $260 million, and that's not counting the addition of LivePerson. In comparison, BigBear.ai projects full-year sales between $135 million and $165 million, notably lower than its AI rival, in a sign that SoundHound's business continues to grow faster.
Should you buy stock in BigBear.ai right now?
Before you buy stock in BigBear.ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BigBear.ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
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*Stock Advisor returns as of September 27, 2026.
Robert Izquierdo has positions in SoundHound AI. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.

SoundHound AI vs. BigBear.ai: Revenue Trends Reveal Key Insights About These Artificial Intelligence Companies

SoundHound AI, Inc. SOUN emphasizes voice and agentic artificial intelligence (AI), while NVIDIA Corporation NVDA remains a major player in AI infrastructure. Both companies have benefited from strong AI demand, as reflected in their latest quarterly results. Let’s compare their latest results and growth prospects to determine which stock offers the stronger investment opportunity right away.
SOUN’s Growth Accelerates as Margins Improve and Losses Narrow
SoundHound reported exceptional second-quarter 2026 results, as highlighted in the company’s Aug. 5 press release. Revenues reached $61.9 million in the second quarter, up 45% year over year. Revenue growth remains a key positive, as second-quarter revenues were 10 times higher than the second-quarter 2022 levels when it debuted as a public company.
Management expects the revenue growth momentum to continue through the remainder of 2026, and raised its full-year revenue outlook to $230 million-$260 million. Revenue growth is expected to improve as demand for high-ROI voice and agentic AI solutions accelerates, supported by SoundHound’s OASYS platform and in-house AI models.
The company’s GAAP gross profit jumped 68% year over year in the second quarter, outpacing its 45% revenue growth and signaling improving profitability as the business scales. While SoundHound remains unprofitable, its losses are narrowing, with its GAAP net loss declining to $42.8 million from $74.7 million in the year-ago quarter.
NVDA’s AI Growth Accelerates on Strong Data Center Demand
NVIDIA’s Data Center business remains the primary growth driver, generating $89 billion in the fiscal second quarter of 2027, up 117% from a year ago and 18% sequentially, according to the company’s Aug. 26 press release. The company’s consolidated revenues reached $96.2 billion, up 106% year over year and 18% quarter over quarter.
Revenue growth momentum is expected to remain strong next quarter. Management projects revenues of around $108 billion, plus or minus 2%, for the fiscal third quarter of 2027, up 12% sequentially at the midpoint.
NVIDIA also delivered robust profitability alongside strong top-line growth. The company’s non-GAAP gross margin was 75% compared to 72.5% a year earlier, while high operating income indicated that NVIDIA was able to convert its revenue growth into higher earnings.
Meanwhile, the advanced Vera Rubin platform is in full production, positioning NVIDIA to benefit from the next wave of AI investment.
SoundHound or NVIDIA—Which AI Stock to Buy Post Earnings?
The latest earnings results have highlighted that both SoundHound and NVIDIA have benefited from strong AI-driven growth. SoundHound has demonstrated rapid revenue growth and improving financial performance, while NVIDIA delivered robust revenue growth and strong profitability.
However, SoundHound’s growth remains concentrated in the voice and agentic AI market, which is still smaller in scale, while its ongoing losses make it a high-risk investment. In contrast, NVIDIA has built a dominant position in the AI infrastructure market, supported by a deep-rooted ecosystem, varied revenue streams, and strong profitability.
All these factors make NVIDIA a more mature business, with a stronger financial foundation than SoundHound. Thus, NVIDIA is a more compelling buy right now. NVIDIA currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
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SoundHound vs. NVIDIA After Earnings: Which AI Stock to Buy Now?

Key Points
SoundHound's recent quarterly revenue was 10 times what it was when it went public back in 2022.
The company has leaned heavily on acquisitions to grow its top line.
A lack of profitability may be keeping investors away.
SoundHound AI (NASDAQ:SOUN) has been experiencing strong growth this year, as it looks to be a big player in the voice artificial intelligence (AI) market. It has broadened and diversified its business over the years, with revenue now coming from many different sectors of the economy.
However, despite the strong growth, the tech stock continues to struggle. This year, even as it's posted record numbers, it has fallen by around 35%. But the sell-off isn't all that much of a mystery for investors who have taken a closer look at the company's financials results; SoundHound may be leaning on acquisitions too heavily.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Why massive revenue growth isn't enough to give SoundHound's stock a boost
Last month, SoundHound's CEO Keyvan Mohajer touted the company's exceptional growth, pointing out that its recent quarterly revenue was 10 times what it was when the stock went public back in 2022. And with strong demand for the company's voice and agentic AI solutions, the future for the business remains promising.
But here's why investors may not be all that enamored with the results. For one thing, it's hard to decipher the company's organic growth rate, which reflects how well the existing business is doing. Acquisitions have given the company's top line a boost and, in doing so, have made it difficult to determine the strength of the core business. Through the first six months of the year, SoundHound's revenue has risen by more than $34 million, which is an impressive increase of 48% year over year. However, much of that increase came from its subscription revenue, which the same company says was "mainly driven by revenue from acquisitions in the Americas."
Meanwhile, the company's loss from operations totaled just under $66 million during the past two quarters, and that's even with the company getting a $43 million boost from a change in the fair value of its contingent acquisition liabilities. It's a concerning sign that even though the business is growing fast, it isn't making much progress toward profitability.
SoundHound's stock could still go far lower
While SoundHound's stock hasn't been doing well this year, it's not necessarily cheap enough where it's become a no-brainer buy. Given its lack of profitability and constant pursuit of acquisitions, there is the risk that the business will continue incurring losses and burning through cash in the months ahead, which may result in stock offerings and dilution for existing shareholders.
Without proof that the AI business is growing organically or that at least it's making serious strides toward profitability, the stock may continue to struggle. For now, the safest option with SoundHound AI is to take a wait-and-see approach.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 14, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

This Is the Biggest Problem With SoundHound AI Stock

Key Points
SoundHound AI’s revenue jumped 45% year over year in the second quarter.
The LivePerson deal expands SoundHound’s customer reach to 25 Fortune 100 companies.
Despite SoundHound’s 71% stock decline, its cash burn and execution remain important risks.
SoundHound AI (NASDAQ: SOUN) develops voice and conversational AI technology for businesses. The company's shares have tanked nearly 71% from their $22.17 intraday high from October 2025 (closing price as of Sept. 9).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Yet SoundHound AI's business has held up far better than its stock price, creating a gap that makes the shares worth a closer look.
Growth is strong, but acquisitions are also helping
SoundHound AI's revenue was up 45% year over year to $61.9 million in the second quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss also improved 33% year over year to $9.6 million. The company exited Q2 with $203 million in cash and no debt. Management expects fiscal 2026 revenue to fall in the range of $230 million to $260 million.
The growth is encouraging, but investors should look past the financial numbers. SoundHound's revenue growth was not entirely organic. The company's service subscription revenue increased 47% year over year to $47 million in the second quarter, mainly due to revenue from acquisitions. The company also used nearly $60 million of cash in operating activities during the first half of fiscal 2026.
Hence, SoundHound AI is growing rapidly, but acquisitions and continued cash burn make the underlying growth story less impressive than the headline numbers suggest.
LivePerson acquisition catalyst
SoundHound AI completed its acquisition of LivePerson on Sept. 4, significantly expanding its enterprise reach. The combined company now serves 25 of the Fortune 100 companies. Management expects revenue of at least $350 million and up to $400 million in 2027. SoundHound also sees an opportunity to eventually reach $500 million in annual revenue by leveraging the combined company's existing customer base.
LivePerson's revenue fell 12% year over year in the second quarter, partly due to customer cancellations and downsells. SoundHound AI must therefore successfully cross-sell its AI products into the expanded customer base while improving cash flow.
At today's lower price, the stock looks attractive but still speculative. Stronger organic growth and lower cash burn could make the 71% decline look excessive.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.

This Artificial Intelligence Stock Is Down 71% and Could Be a Screaming Buy

Key Points
Artificial intelligence is a relatively new technology, and it isn't yet clear who the big winners will be.
The technology sector has gone through innovation phases like this before, and early winners sometimes end up long-term losers.
If you are interested in AI, this globally diversified power company provides the one thing it needs to keep operating.
If you are old enough, you remember a time before the internet. And you also remember Yahoo! and America Online being two of the most dominant internet companies early in the internet's development. The stocks were hot way back then, but today, both have basically flamed out and been swallowed up by other companies. Other internet companies became more dominant.
This isn't unusual in the tech sector, and investors piling into artificial intelligence (AI) stocks should keep that in mind. Sure, you could make a big bet on an AI stock that you think has winning tech, like a high-powered chip or a specialized application, or you could go with a picks-and-shovels play like Brookfield Renewable (NYSE: BEP)(NYSE: BEPC). Here's why this clean energy company could be the better bet.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
AI Investors are being driven by emotion
Right now, artificial intelligence is a hot sector. Too many investors see it as a way to get rich quickly. And that has had pretty predictable consequences. For example, SoundHound (NASDAQ: SOUN) provides AI voice services. That's exciting, but probably not unique enough to build a business around. Still, its stock skyrocketed as investors jumped on the next hot thing. The shares have since plunged back to earth, down 70% from their 2024 peak.
The same could be happening now with Western Digital (NASDAQ: WDC), a maker of data storage devices. Huge demand from the AI build got investors excited about the stock, but that excitement has begun to fade. The stock has fallen roughly 40% from its recent highs. That's actually the second huge drawdown over the last three years. Even AI poster-child Nvidia (NASDAQ: NVDA) has proven to be a highly volatile stock.
If you can't stand the AI volatility, go with a picks-and-shovels play
But, there's one thing that AI can't live without: electricity. After all, AI is really just a fancy computer program. Electricity demand is so high right now that there's been a step change. Between 2005 and 2025, U.S. electricity demand increased by 10%. Between 2025 and 2045, U.S. demand is projected to increase 60%. AI is playing a major role in the changing dynamics of electricity. Globally, however, there's also a shift toward cleaner power sources and increasing demand from developing nations. A great way to benefit from AI, clean energy, and broader economic growth is Brookfield Renewable.
Brookfield Renewable owns a globally diversified portfolio of clean energy assets, with exposure to North America, South America, Europe, and Asia. Its power portfolio includes solar, wind, hydroelectric, and storage. It also owns a stake in Westinghouse, a key global supplier to the nuclear power industry. It is a one-stop shop for clean energy exposure, and it is already working with AI-focused companies like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG) to help them build out their AI businesses.
The best part of the story, however, is likely to be Brookfield Renewable's dividend. The yield is currently around 5% for the partnership share class and 4.9% for the corporate share class. The quarterly disbursement has been increased at a roughly 5% annualzed pace over the past decade. Add a 5% dividend to a 5% dividend growth rate, and you get roughly 10%, which is about the return most investors expect from the broader market.
The future is bright for Brookfield Renewable
AI is just part of the electricity story that supports Brookfield Renewable's long-term growth opportunity. Which is actually more exciting than if AI were the only thing this clean energy company had going for it. If you are a dividend investor looking to benefit from AI, forget trying to pick a winner in the volatile AI sector and dig into high-yield Brookfield Renewable. It is already benefiting from AI's intense demand for power, but there's much more opportunity than that.
Should you buy stock in Brookfield Renewable right now?
Before you buy stock in Brookfield Renewable, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Renewable wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 6, 2026.
Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Alphabet, Microsoft, Nvidia, SoundHound AI, and Western Digital. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Forget AI Stocks: This Clean-Power Play Is the Real Winner

Key Points
SoundHound AI reported Q2 2026 financial results last month.
The company revised its 2026 guidance.
SoundHound AI stock is trading at a discount to its historical valuation.
After dipping 5.3% lower in July, shares of SoundHound AI (NASDAQ: SOUN) stock jumped higher last month after the artificial intelligence (AI) company' reported strong Q2 2026 financial results.
According to data provided by S&P Global Market Intelligence, SoundHound AI stock rose 16.8% in August.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
$61.9 million in Q2 2026 revenue sounded good to SoundHound AI investors
Surpassing the $52.4 million that analysts had anticipated, SoundHound AI reported second-quarter 2026 revenue of $61.9 million, a 45% year-over-year increase. At the bottom of the income statement, the company also exceeded expectations. While analysts estimated SoundHound AI would report an adjusted loss per share of $0.05, the company posted a slimmer $0.02 adjusted loss per share.
Although SoundHound AI is still incurring a net loss, the company is making progress toward profitability. In Q2 2026, it expanded its gross profit margin to 45.1% from 39% during the same period last year.
In the press release addressing the financial results, SoundHound AI interim CFO and co-founder James Hom lauded the success of the company's recently launched OASYS, an AI system that enables customers to build and deploy conversational AI agents to accomplish several tasks, such as handling transactions, tasks, and workflows on behalf of customers and employees, stating, "We are excited by the strong interest we are already seeing with OASYS, which is a testament to the category-defining technology we continue to deliver to the market. Our investment in innovation, combined with our cost discipline, is key as we drive our business toward achieving profitable growth."
In addition to the recent quarter, investors celebrated the company's updated 2026 revenue guidance, which ranges from $230 million to $260 million. Should the company achieve the midpoint of this forecast, it will represent year-over-year sales growth of 45%.
While the market celebrated the company's financial results, some analysts took a more bearish stance on the AI stock -- a factor that contributed to shares giving back some of the gains they had made immediately after the company's Q2 results announcement. Piper Sandler analyst James Fish, for example, cut the price target on SoundHound to $7 from $8, maintaining a neutral rating. Similarly, Gil Luria, a DA Davidson analyst, reduced the firm's price target to $10 from $12.
SoundHound AI stock is hanging on the discount rack
Falling 5.9% so far in September, SoundHound AI stock has given back some of the gains that it logged in August. Couple this with the fact that shares of the AI stock are trading at 13.9 times sales -- a discount to their five-year average P/S multiple of 17.2 --, and it looks like now's a good time to start a position.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 6, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why SoundHound AI Stock Rocketed 16.8% Higher in August

Key Points
SoundHound grew second-quarter revenue 45% year over year to a record $61.9 million and now expects $230 million to $260 million for 2026.
LivePerson shareholders approved their company's sale to SoundHound on Sept. 2, a deal that adds about $200 million of shrinking annual revenue.
The company's adjusted EBITDA loss narrowed to $9.6 million last quarter, a pace that likely leaves sustained profits years away.
SoundHound AI (NASDAQ:SOUN) is becoming a much bigger company. LivePerson (NASDAQ:LPSN) shareholders approved the sale of their company to the voice artificial intelligence (AI) specialist on Sept. 2, and the mostly stock deal closed on Friday, Sept. 4.
SoundHound's own second-quarter revenue grew 45% year over year to a record $61.9 million, and management raised the low end of its full-year outlook, which now calls for $230 million to $260 million of revenue in 2026.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Stack a large acquired business on top of that growth, and the top line could reach half a billion dollars surprisingly soon. The losses are moving much more slowly. Here's my prediction: SoundHound passes $500 million in annual revenue before it earns a sustained profit.
Image source: The Motley Fool.
Record revenue, a raised outlook
SoundHound's growth record is short but steep. Revenue nearly doubled in 2025, reaching $168.9 million. The first quarter of 2026 came in at $44.2 million, up 52% year over year, and the second quarter's growth was 45%, with revenue up 40% from the first quarter alone. The growth rate is decelerating as the numbers get bigger. But the dollars keep setting records.
This year's guidance of $230 million to $260 million implies 36% to 54% growth. Notably, the range excludes LivePerson. Management plans to update its guidance after the deal closes, likely before the end of the year.
From the $245 million midpoint, the compounding works fast. Another year of 45% growth would put 2027 revenue near $355 million, and a repeat in 2028 would land the company at about $515 million. Even if growth cooled to 30%, revenue would cross $500 million in 2029.
LivePerson pulls the timeline into 2028
The acquisition, a mostly stock deal with an enterprise value of about $250 million, brings a business nearly as large as SoundHound itself. LivePerson expects $195 million to $207 million of revenue this year.
That revenue is shrinking, though. Guidance calls for a 15% to 20% decline in 2026, and revenue retention among LivePerson's enterprise and mid-market customers fell to 78% last year.
SoundHound's own combined-company forecast reflects the erosion. Management projects at least $350 million to $400 million of revenue in 2027 (still below what the two would generate this year combined).
Still, from the top of that range, the combined company needs only about 25% growth in 2028 to pass $500 million -- a fraction of the rate SoundHound is delivering on its own. Management has said the combined business is expected to reach up to $500 million on its existing customers alone. I think revenue crosses in 2028, with 2029 as the slow case.
When do the profits show up?
Much later, on the current trend.
SoundHound's non-GAAP (adjusted) EBITDA loss narrowed to $9.6 million in the second quarter from $14.3 million a year earlier, a 33% improvement. (Adjusted EBITDA is earnings before interest, taxes, depreciation, and amortization, excluding items like stock-based compensation.)
The loss line is narrowing, but not in a straight line. The first quarter's adjusted loss widened year over year, to $26.7 million from $22.2 million.
The bigger problem is the gap between that measure and the company's full losses. SoundHound's second-quarter net loss was $42.8 million (about 69% of revenue), an improvement from $74.7 million a year earlier. Stock-based compensation plus depreciation and amortization alone separate the two figures by more than $30 million a quarter, and quarterly mark-to-market swings on acquisition-related liabilities add noise on top.
Of course, those swings can point the other way, too. SoundHound reported $40.1 million of net income in the fourth quarter of 2025, thanks to an $85 million non-cash mark-to-market gain. But that isn't the kind of profit this prediction is about.
And LivePerson won't speed things up. It lost $72.6 million last quarter, including a $51.8 million goodwill impairment, and the merger adds fresh acquisition accounting on top.
Ultimately, this isn't a close race. On the current pace, revenue passes $500 million in 2028. A sustained profit (money earned on operations, not a one-quarter accounting gain) looks unlikely before 2029 at the earliest. And even that requires the second quarter's operating leverage to hold through a big integration.
For the stock, that order matters. Shares trade at about $6.75 as of this writing, down about 70% from their 52-week high of $22.17, yet still about 12 times revenue, based on the midpoint of this year's guidance. That price already assumes the growth keeps coming, and I think it will.
But anyone buying the growth stock should expect red ink for years while the top line does the work. I'd avoid buying shares here until the loss line proves it can keep narrowing through the integration.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 6, 2026.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.