Better Artificial Intelligence Stock: SoundHound AI vs. Astera Labs

• SoundHound uses AI to construe quality speech, applying its exertion for commercialized applications specified arsenic taking verbal orders from customers.

• Astera Labs provides hardware products that are the nuts and bolts for powering AI systems.

• 10 stocks we similar amended than SoundHound AI ›

The emergence of artificial quality (AI) has unleashed a tidal question of related businesses to see investing in. Among these are SoundHound AI (NASDAQ: SOUN) and Astera Labs (NASDAQ: ALAB).

The erstwhile delivers voice-enabled AI that companies tin marque usage of successful lawsuit interactions, specified arsenic taking orders astatine edifice drive-thrus. The second acts down the scenes, providing components utilized successful information centers.

Both are seeing beardown income maturation acknowledgment to the request for AI-related technologies. But which looks apt to beryllium the amended semipermanent investment?

Buying SoundHound shares means accepting plentifulness of volatility, fixed its beta of astir 3. For example, past December, the banal skyrocketed to a 52-week precocious of $24.98, but fell backmost to world successful 2025, hitting a 52-week debased of $6.52 connected April 7 aft President Donald Trump's tariff policies caused the banal marketplace to crash.

SoundHound's stock terms resurgence occurred successful October aft concern slope H.C. Wainwright raised its terms people connected the banal to $26. The mean people among Wall Street analysts is present $16.94.

This chaotic thrust illustrates however AI's popularity among investors has impacted the stock, arsenic good arsenic the information that the institution has some strengths and shortcomings.

For instance, the AI dependable adept has achieved a fig of notable wins this year. In October, it announced an expanded statement with French security supplier Apivia Courtage, a woody that came astir acknowledgment to the awesome results delivered by SoundHound's agentic AI. In the 3rd quarter, SoundHound's income soared to grounds gross of $42 million, a 68% year-over-year increase.

However, the institution made a fig of acquisitions that, portion turbocharging sales, dramatically boosted its costs. Consequently, it booked a nett nonaccomplishment of $109.3 cardinal successful the 3rd quarter, an summation of much than 400% from its nonaccomplishment of $21.8 cardinal successful the prior-year period. That important sum, against gross of $42 million, is concerning, though the institution indicated it is moving to trim expenses.

Astera Labs' stock terms moves were much favorable for shareholders. The banal went from a 52-week debased of $47.13 during the April clang to a precocious of $262.90 connected Sept. 18.