Nvidia (NVDA) and SoundHound AI (SOUN) were among the most talked-about AI stocks of 2025, each offering a different way to gain exposure to the sector. Here’s how NVDA and SOUN compare as potential investments heading into 2026. Using TipRanks’ Stock Comparison Tool, we have placed Nvidia against SoundHound, comparing them on different parameters.
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Nvidia vs. SoundHound: A Quick Comparison
- Nvidia continues to gain from growing AI spending worldwide as a key supplier of data-center chips.
- SoundHound focuses exclusively on voice-based AI, which gives investors a speculative, high-upside opportunity.
The surge in AI has powered strong gains in NVDA stock this year, with 40% gain so far in 2025. On the other hand, smaller rival SoundHound has seen its shares lose momentum, despite a solid run in 2024. SOUN stock is down by 45%, year-to-date.
Is Nvidia a Good Stock to Buy?
Nvidia’s bullish case is built on its dominant role in the AI boom. Its chips power data centers and AI systems around the world, and demand keeps rising as companies pour more money into AI. With strong pricing power, rapid revenue growth, and a deep lead over competitors in AI hardware and software, Nvidia is well-positioned to keep delivering solid growth into 2026.
Having said that, much of the AI optimism is already priced into the stock. Expectations are extremely high, so any slowdown in AI spending, tougher competition, or pressure on profit margins could hurt growth. At these levels, even small disappointments in earnings or guidance could lead to sharp declines in the share price.
NVDA Stock Forecast
On Wall Street, analysts are highly bullish on NVDA stock heading into 2026. Among the bulls, Evercore’s five-star-rated analyst Mark Lipacis has the Street-high price target of $352 on NVDA, predicting an upside of more than 85% in 2026. Lipacis highlighted that Nvidia’s strong earnings and solid growth outlook meet expectations and highlight its ongoing leadership in AI. He also noted that the company’s estimate of $493 billion in total revenue for 2025 and 2026 may actually be cautious based on current trends.
Closer to Evercore, top-rated analyst Ivan Feinseth at Tigress Financial has a price target of $350 on NVDA. Feinseth calls Nvidia a “must-own” stock for investors focused on AI.
Overall, analysts have a Strong Buy rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the last three months. Meanwhile, Nvidia’s stock price target of $263.58 implies an upside of almost 40% from current levels.
Is SOUN a Good Investment?
Unlike Nvidia’s massive scale, SoundHound is a much smaller company, but its growth story is increasingly drawing investor interest. SoundHound’s upside story is driven by its expanding revenue opportunity. Its voice AI technology is already deployed across sectors such as automotive, restaurants, and customer support, and demand is rising as more businesses adopt voice-based AI tools. In the third quarter, revenue surged 68% from a year earlier, and the company boosted its full-year revenue forecast to $165–$180 million, pointing to growing momentum for its technology.
On the downside, SoundHound’s valuation tempers some of the optimism around the stock. Its forward price-to-sales ratio stands at 27, well above the sector median of 3.4. While the shares look expensive relative to the company’s current size, they still offer significant upside if growth remains strong.
SOUN Stock Forecast
On Wall Street, analysts are cautiously optimistic about SoundHound. Top-rated H.C. Wainwright analyst Scott Buck has set a Street-high price target of $26, citing the company’s steady progress toward profitability. He points to improving margins of the company and a clearer path to positive EBITDA.
Meanwhile, Cantor Fitzgerald’s four-star analyst Thomas Blakey recently upgraded SOUN stock from Hold to Buy and raised his price target to $15 from $13. Blakey highlighted the company’s strong execution, particularly its ability to cross-sell and upsell voice and conversational AI solutions to existing clients. He further stated that expectations for SoundHound AI are relatively modest heading into 2026, which could create upside potential if the company continues to execute on its growth strategy.
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average stock price target for SoundHound is $17.33, suggesting a potential upside of 60% from the current level.
Conclusion
In conclusion, Nvidia and SoundHound offer very different investment opportunities in the AI space. Nvidia provides a dominant, lower-risk play with established leadership, strong revenue growth, and industry-standard technology, though its stock is priced for perfection. SoundHound, while smaller and riskier, presents high upside potential with expanding adoption of its voice-AI solutions and improving financials. Investors will need to weigh stability and scale against growth potential and risk when choosing between the two heading into 2026.