The AI revolution is gaining momentum, and two companies, CoreWeave, Inc. (CRWV) and SoundHound AI, Inc. (SOUN), are emerging as strong contenders. CoreWeave’s stock has skyrocketed over 250% year-to-date, while SoundHound AI has delivered gains of more than 110% over the past year, highlighting growing investor interest in both names.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
SoundHound is a rising player using its voice AI technology in different industries, including automotive and hospitality. Meanwhile, CoreWeave is an AI cloud-computing company specializing in GPU-powered cloud services. While both companies offer exposure to AI-driven innovation, their business models differ significantly. So, which stock stands out as the better buy right now? Let’s break it down.
Is SoundHound a Good Long-Term Investment?
With rising demand for faster service and ongoing labor shortages, restaurants are turning to voice automation, boosting adoption of SoundHound’s solutions by clients like Chipotle (CMG) and Casey’s General Stores (CASY).
The strong demand was reflected in the company’s performance. SoundHound reported a 151% year-over-year growth in Q1 revenues, reaching $29.1 million. However, profitability remains elusive, with an adjusted EBITDA loss of $61.9 million last year.
With the conversational AI market projected to grow from $17.05 billion in 2025 to $49.80 billion by 2031, according to MarketsandMarkets, the company is well-positioned to expand its customer base and capitalize on this growth. Looking ahead, it expects full-year revenue to double, forecasting between $157 million and $177 million, up from $84.5 million in 2024. Moreover, SoundHound’s $1.2 billion booking backlog for 2024 underscores strong visibility into future revenue and signals robust long-term growth potential.
In terms of challenges, SoundHound faces stiff competition from tech giants like Amazon’s (AMZN) Alexa, Alphabet’s (GOOGL) Google Assistant, and Apple’s (AAPL) Siri, all of which are aggressively investing in their voice AI platforms.
Is CoreWeave a Good Investment?
While SoundHound AI is gaining traction in the voice automation space, CoreWeave is making waves in a different corner of the AI market. CoreWeave has outshone even the big-name tech stocks this year, thanks to its strong connection with Nvidia (NVDA). The company gives clients access to a large supply of Nvidia chips, hosted in over 30 data centers. With high demand for Nvidia’s powerful new Blackwell chips, investors are increasingly optimistic about CoreWeave’s future.
In terms of financial performance, CoreWeave reported Q1 2025 revenue of $971.63 million, marking a 420% year-over-year surge from $188.6 million. At the same time, adjusted EBITDA jumped 480% to $606.13 million, with an impressive 62% margin. Additionally, CoreWeave’s $26 billion backlog at the end of Q1, up 63% year-over-year, is already above the company’s 2025 guidance of $5 billion, underscoring robust growth momentum.
SOUN or CRWV: Which Stock is a Buy, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we have compared SOUN and CRWV to see which stock analysts currently favor. SoundHound’s stock currently holds a Moderate Buy rating, with an average price target of $11.51, implying a modest 7.4% downside from current levels.
Meanwhile, CRWV stock carries a Hold consensus, based on 4 Buy, 15 Hold, and 1 Sell ratings over the past three months. CoreWeave’s average price target of $99.39 suggests a more significant 29% downside.
Conclusion
SoundHound and CoreWeave have emerged as standout players in their respective AI domains—voice AI and AI infrastructure. While both stocks have recently surged, leading current analyst price targets to imply some short-term downside, this does not overshadow their long-term potential. With strong fundamentals and strategic positioning in high-growth areas of the AI sector, both companies are well-placed to capitalize on the massive expansion expected in the years ahead. Investors may need to brace for near-term volatility, but the long-term growth story remains firmly intact.