<div id="readability-page-1"><p>As investors plan for 2025, AI stocks are getting a lot of attention. Companies like SoundHound AI (SOUN) and C3.ai (AI) are standing out, each with unique offerings and growth potential. With hype around AI driving both opportunities and risks, investors wonder which stock offers the better long-term upside.</p><h3>Elevate Your Investing Strategy:</h3><ul><li> Take advantage of  TipRanks Premium at 50% off!  Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. </li></ul> <p>For context, SoundHound AI provides AI solutions focused on voice recognition and language understanding across multiple industries. Meanwhile, C3.ai offers AI software and tools to help businesses work smarter, use data effectively, and improve operations.</p> <h2><strong>Is SOUN a Good Stock to Buy?</strong></h2> <p>SoundHound has recently been in the spotlight following its strongest quarterly performance to date in Q2. Revenue soared 217% year-over-year to a record $42.7 million, while the company also narrowed its net loss to $0.03 per share. Looking ahead, SoundHound raised its full-year revenue forecast to $160 million–$178 million, up from the previous $157 million–$177 million range.</p> <p>What sets SoundHound apart is its independent AI platform, which gives customers more control than than they would have if they relied on larger tech companies. However, if the economy slows, major clients like automakers and restaurants may reduce tech spending, potentially affecting demand for SoundHound's services.</p> <p>Despite this, SoundHound could still appeal to long-term growth investors. Those considering buying the stock should be prepared for short-term volatility as the company works toward capturing larger market opportunities. For long-term investors, SOUN represents a high-risk, high-reward play.</p> <p>In terms of stock performance, SOUN stock surged almost 150% in the past year but has been volatile and is down about 37% so far in 2025.</p> <h2><strong>Is C3.ai a Good Stock to Buy?</strong></h2> <p>In contrast, C3.ai has faced a challenging year. On August 11, the stock plunged over 25% after the company announced preliminary Q1 FY26 revenue results. It projects revenue of $70.2 million–$70.4 million, down from $87.2 million during the same quarter last year. The disappointing results come amid a leadership transition, as founder Tom Siebel steps down due to health reasons, leaving the company in search of a new CEO.</p> <p>Year-to-date, C3.ai stock has lost more than half its value.</p> <p>For C3.ai, a CEO transition can create uncertainty, and the big question is who will succeed Siebel. If the new leader lacks Siebel's sales skills or industry relationships, the company could continue struggling to grow revenue. This makes an already risky stock potentially even more volatile for investors.</p> <h2><strong>SOUN or AI: Which Stock Offers Higher Upside, According to Analysts?</strong></h2> <p>Using TipRanks' Stock Comparison Tool, we compared SOUN and C3.ai to see which AI stock analysts favor. SOUN carries a Moderate Buy rating, while C3.ai has a Hold rating. Nevertheless, in terms of share price appreciation, AI stock offers higher growth potential of over 30% due to the recent decline in its stock. SOUN, on the other hand, has a price target of $15, implying a potential gain of about 20%.</p> <figure><img width="1024" height="301" src="https://imageproxy.pbkrs.com/https://blog.tipranks.com/wp-content/uploads/2025/08/image-1658-1024x301.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://blog.tipranks.com/wp-content/uploads/2025/08/image-1658-1024x301.png"/></figure> <h2><strong>Conclusion</strong></h2> <p>In conclusion, both SOUN and C3.ai offer distinct opportunities for investors in the AI space. SOUN presents steady growth with a solid product lineup and a Moderate Buy rating. At the same time, C3.ai offers higher upside potential due to its lower stock price, but the company must address profitability concerns and leadership changes to regain investor confidence. In the long term, the choice comes down to an investor's risk tolerance—SOUN for a safer option and C3.ai for those hoping for a rebound.</p> <p>Disclaimer &amp; DisclosureReport an Issue</p></div>

SOUN

<p>As investors eye 2025, AI stocks like SoundHound AI (SOUN) and C3.ai (AI) are in focus. SOUN has shown strong growth, with a 217% revenue increase in Q2 and a raised full-year forecast, but faces potential volatility. C3.ai, however, has struggled, with a projected revenue drop and leadership transition causing uncertainty. Analysts rate SOUN as a Moderate Buy and C3.ai as a Hold, with SOUN offering steady growth and C3.ai presenting higher upside potential despite risks. Investors must weigh their risk tolerance when choosing between the two.</p>

- As investors look to 2025, AI stocks like SoundHound AI (SOUN) and C3.ai (AI) are gaining attention due to their unique offerings and growth potential.  
- SoundHound recently reported a 217% revenue increase year-over-year, while C3.ai faces challenges with a projected revenue decline and leadership transition.  
- Analysts rate SOUN as a Moderate Buy and C3.ai as a Hold, with SOUN offering steady growth and C3.ai presenting higher upside potential but with increased risks.

SOUN or C3.ai: Which AI Stock Is the Smarter Buy for 2025?