The AI sector continues to capture Wall Street’s attention, but not all players are moving in the same direction. SoundHound AI (SOUN) and BigBear.ai (BBAI) both released their Q2 results recently, giving investors fresh insight into their growth potential and near-term challenges. While SoundHound impressed with surging revenue and raised guidance, BigBear stumbled with weaker sales and a trimmed outlook. With Q2 earnings behind us, many investors are wondering whether SOUN or BBAI is the smarter bet for 2025.
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For context, SoundHound AI focuses on voice recognition and natural language processing, while BigBear.ai delivers data-driven decision intelligence solutions mainly for U.S. defense and government clients. Year-to-date, SOUN stock has declined by roughly 37%, while BBAI shares have gained 24%.
Is SOUN a Good Stock to Buy?
What sets SoundHound apart is its independent AI platform, which offers customers greater control compared to relying on big tech providers. The company’s strength was underscored by its strongest quarter to date in Q2.
The revenue jumped 217% year-over-year to a record $42.7 million, surpassing expectations. The company also narrowed its net loss to $0.03 per share. Looking ahead, it lifted its full-year revenue outlook to $160 million–$178 million, up from the previous $157 million–$177 million range.
SoundHound’s Q2 results show both opportunity and risk. The company is expanding fast with strong demand and a solid product lineup, but it still has losses, a steep valuation, and tough competition. For long-term investors, SOUN could be a high-risk, high-reward bet. The next few quarters will be key in proving whether it can grow into a leading AI player or fade as hype.
Is BigBear.ai a Good Stock to Buy?
In contrast, BigBear.ai’s Q2 revenue fell 18% year-over-year to $32.5 million, largely due to federal cost-cutting on certain U.S. Army programs. The company also reported an adjusted loss of $0.71 per share, far wider than the expected $0.06 loss, and cut its 2025 revenue outlook to $125–$140 million.
BigBear.ai is facing headwinds from U.S. government spending cuts, but is working to diversify its customer base. CEO Kevin McAleenan noted that the company recently signed a deal in the United Arab Emirates, calling it “the beginning of our international expansion.”
Despite weak Q2 results, analysts stayed positive on BBAI. H.C. Wainwright’s Scott Buck kept a Buy rating, noting defense contract delays but expecting better visibility by 2026. He also highlighted BBAI’s $390 million cash balance as a strength. Similarly, Cantor Fitzgerald’s five-star-rated analyst Jonathan Ruykhaver also maintained a Buy, raising his target to $6 from $5. He pointed to product improvements, stronger finances, and a 43% jump in backlog to $380 million as signs of healthy demand and long-term potential.
SOUN or BBAI: Which Stock is a Better Buy, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared SOUN and BBAI to see which AI stock analysts favor. Both hold a Moderate Buy rating, but their near-term upside looks limited after the recent surge in prices. SOUN stock has a price target of $15.00, implying an upside of 20%, while BBAI’s stock price target of $5.83 implies an growth of almost 6%.
Conclusion
SoundHound AI and BigBear.ai both reflect the excitement and volatility surrounding AI stocks. SoundHound is growing fast and is seen as a high-growth bet, while BigBear.ai is slower but has a steady role in defense and national security. Both stocks are risky, so investors should expect short-term swings but also consider the chance for long-term gains.