One of the Most Undervalued AI Stocks to Buy Today

AI stocks have been on fire in 2025. But this earnings season has shown why there’s still a substantial opportunity ahead for AI investors.

Right now, it’s about infrastructure commitments. Microsoft Corp. (NASDAQ: MSFT) said its capital expenditure (capex) hit $34.9 billion in its most recent quarter. For its full fiscal year 2025, it’s on track to invest between $80 billion and $88 billion. Meta Platforms Inc. (NASDAQ: META) also increased its 2025 capex to between $70 billion and $72 billion. 

All of which is great news for AI stocks.

Even better, hyperscalers – including Microsoft and Meta – plan to spend more than $300 billion just this year as the race for AI dominance gains momentum. 

That means there’s still room for large-cap AI stocks like NVIDIA Corp. (NASDAQ: NVDA), Palantir Technologies Inc. (NASDAQ: PLTR), and Advanced Micro Devices Inc. (NASDAQ: AMD) to move higher. However, it’s also bullish for under-the-radar gems like SoundHound AI Inc. (NASDAQ: SOUN).

You may not be familiar with SoundHound, but you’ve probably interacted with its technology. This is the company that provides voice control and audio analytics software to automakers, drive-through restaurants, and other businesses with phone-based menu systems.

This AI Stock is Up 2,074% in Two Years

Over the last two years, shares of SoundHound AI exploded from a low of about $1.02 to a high of $22.17 – a 2,074% return.

Now back to $11.95, SOUN – the $4.88 billion voice AI platform – still offers plenty of upside potential. Earnings have been strong. In its most recent quarter, its EPS loss of three cents beat by two cents. Revenue of $42.7 million, up 217.2% year over year, beat by $9.82 million. SOUN also increased its outlook for 2025 revenue from $160 million to $178 million.

Analysts at Oppenheimer just initiated coverage of SOUN with a Market Perform rating, noting that the company has the potential to be a durable growth compounder.

“The company has a strong conversational AI technology platform that is supported by referenceable customers who view it as a leader in speech-to-meaning capabilities, data sciences, unstructured analytics, and technology vision,” added Seeking Alpha.

Seeing Significant Customer Momentum

Despite some recent hiccups, SOUN is seeing a good deal of customer momentum. It’s now working with over 30% of the top 20 quick-service restaurants and is expanding with Burger King UK, Church’s Texas Chicken, Peet’s Coffee and Whataburger. It also just partnered with Red Lobster to roll out an AI-powered phone ordering agent.

Restaurants are a key vertical for SoundHound, but there are others. For example:

• SoundHound is working with healthcare giants, including Duke Health, Wellstar Health System, and Englewood Health.
• In the automotive sector, SoundHound is working with electric vehicle manufacturers, with customers including Lucid Motors.
• In the financial sector, SoundHound has customers such as BNP Paribas along with regional banks and credit unions.
• SoundHound is also working with multi-location retail brands in clothing, fitness, vehicle maintenance, home services, waste management, and more.

Many AI Stocks Won’t Give You a Second Chance

The problem with some AI stocks is their speculative nature. Many are unprofitable, and some have little revenue to justify being priced as anything more than a penny stock.

SoundHound is still unprofitable. However, in its last quarter, the company posted $42.05 million in revenue, a 67.5% year-over-year improvement. Better still, the company is closing in on its first-ever non-GAAP profitable quarter.

Investors have seen many examples of companies like SoundHound, taking off once the company proves it can generate a profit. Analysts give SOUN stock a consensus price target of $17.42. That’s an increase of over 45% from its closing price on November 25.

This means the pullback to around $11, gives you a second chance to scoop up SOUN stock at a discount.