The ongoing earnings season will provide more clarity on whether the hype surrounding artificial intelligence (AI) stocks is justified or not. Moreover, investors will look for more clues on the impact of macro uncertainties on AI spending. Despite near-term challenges, Wall Street remains optimistic about the long-term potential of several AI companies to deliver strong returns. Using TipRanks’ Stock Comparison Tool, we place Palantir Technologies (PLTR), Amazon (AMZN), and SoundHound AI (SOUN) against each other to find the most attractive AI stock, according to Wall Street analysts.
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Palantir Technologies Stock (NASDAQ:PLTR)
Data analytics company Palantir Technologies has impressed investors with rapid growth across its commercial and government businesses, backed by the demand for its AI tools. PLTR stock has rallied about 110% year-to-date. In fact, the company is now among the 20 most valuable companies in the U.S. based on its market value.
Palantir is scheduled to announce its second-quarter earnings on August 4. Investors have high expectations following the stellar performance in recent quarters. Wall Street expects PLTR to report earnings per share (EPS) of $0.14, reflecting a 55.5% year-over-year increase. Revenue is estimated to grow by 38.5% to $939.12 million.
Is PLTR Stock a Buy, Sell, or Hold?
Recently, Mizuho analyst Gregg Moskowitz upgraded Palantir Technologies stock from Sell to Hold and increased the price target from $116 to $135. The 4-star analyst called the company’s recent execution and momentum “stunning,” including notable upward revisions across its commercial and government segments, which he thinks he underestimated. Moskowitz also sees the chance for the company to report accelerated revenue growth for a fifth consecutive quarter when it announces its Q2 results.
While the analyst acknowledges that Palantir is well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization, he remains cautious due to the stock’s valuation.
Overall, Palantir stock scores a Hold consensus rating based on four Buys, 10 Holds, and three Sell recommendations. The average PLTR stock price target of $109.50 indicates a downside risk of 31.05% from current levels.
Amazon.com Stock (NASDAQ:AMZN)
Amazon stock has risen 5.5% year-to-date. Despite concerns about the impact of tariffs and macroeconomic uncertainties, Wall Street continues to believe in the strength of the company’s diversified business model and the ability of its cloud computing unit, Amazon Web Services (AWS), to capture significant AI-related growth opportunities. The need for high computing power and massive data storage will drive the demand for AWS.
The e-commerce and cloud computing giant is scheduled to announce its results for the second quarter of 2025 on July 31. Aside from the strength in e-commerce and cloud computing businesses, investors will also focus on the performance of Amazon’s rapidly growing advertising business. Wall Street expects the company to report EPS of $1.33, reflecting a 5.5% year-over-year growth. Revenue is expected to rise about 9.5% to $162.1 billion.
Is Amazon Stock a Buy?
Heading into Q2 results, Deutsche Bank analyst Lee Horowitz increased the price target for Amazon stock to $266 from $230 and reaffirmed a Buy rating. The 5-star analyst stated that while tariff concerns were in focus when Amazon issued its Q2 guidance, a resilient consumer backdrop and tariff-related cost increases that “continue to get kicked down the road” should support upside to Q2 and Q3 numbers. Horowitz added that in the absence of Temu and Shein, Amazon’s share gains have accelerated.
Furthermore, the analyst noted that advertising revenue growth remains healthy, AWS revenue is being supported by AI tailwinds and improving enterprise migration momentum, and better GPU supply in the second half is driving accelerating revenue growth. Given all these factors and ongoing cost discipline, Horowitz expects upside to Q2 operating income.
With 44 Buys and one Hold recommendation, Wall Street has a Strong Buy consensus rating on Amazon stock. The average AMZN stock price target of $258.27 indicates 11.6% upside potential from current levels.
SoundHound AI Stock (NASDAQ:SOUN)
SoundHound AI offers artificial intelligence-powered voice and conversational intelligence solutions to several end markets, including retail, automotive, healthcare, and restaurants. SOUN stock enjoyed a more than 800% rally in 2024, thanks to solid demand for the company’s voice solutions. It has advanced 22.4% over the past month but is still down 41% year-to-date.
While deals like the one with Peter Piper Pizza reflect the company’s dominance in the restaurants end market, profitability concerns, rising competition in the voice AI space, and SOUN stock’s lofty valuation continue to weigh on investor sentiment. Nonetheless, SoundHound AI is confident about capturing further growth opportunities in lucrative areas, like automotive, through organic innovation and strategic acquisitions.
SoundHound is scheduled to announce its results for the second quarter of 2025 on August 7. Analysts expect the company to report a narrower loss per share of $0.09 compared to $0.11 in the prior-year quarter. Revenue is expected to surge 144% year-over-year to $32.88 million.
Is SOUN Stock a Good Investment?
Recently, Piper Sandler analyst James Fish downgraded SoundHound AI stock from Buy to Hold, while maintaining a price target of $12. The 5-star analyst highlighted near-term concerns about deals getting pushed into 2026. Fish noted that the company is trying to achieve profitability while investing in the success of Amelia, a conversational AI company acquired last year. However, he contends that it is difficult to achieve both objectives. Currently, Fish is sidelined on SOUN stock as he sees a balanced risk/reward.
Overall, Wall Street has a Moderate Buy consensus rating on SoundHound stock based on three Buys and four Holds. The average SOUN stock price target of $11.50 indicates a possible downside of 1.8% from current levels.
Conclusion
Wall Street is sidelined on Palantir Technologies stock, cautiously optimistic on SoundHound AI, and bullish on Amazon stock. Analysts see higher upside potential in Amazon stock than in the other two AI stocks. The upcoming Q2 results will reflect the momentum in Amazon’s AWS business, which is expected to benefit from significant AI tailwinds.