Stocks in Artificial Intelligence with Potential for Exponential Growth
The AI sector is on an upward trajectory, with the global market projected to reach a staggering $4.8 trillion by 2033. Two companies, SoundHound AI and Applied Digital (APLD), are positioning themselves to capitalise on this growth.
SoundHound AI's Financial Status and Growth Potential
In the second quarter of 2025, SoundHound AI reported a record revenue of $42.7 million, marking a 217% year-over-year increase. The company has raised its full-year 2025 revenue guidance to between $160–$178 million, up from a previous range of $157–$177 million.
SoundHound AI has diversified its revenue streams, ensuring no single customer exceeds 10% of total revenue, reducing risk. The company is growing through strategic acquisitions that enhance its AI voice platform across various sectors, securing major clients including top automotive OEMs and global financial institutions.
Despite strong top-line growth, SoundHound is still operating at a net loss. However, management targets adjusted EBITDA profitability by the end of 2025. The company's stock performance is volatile, but it has shown a +105% growth over the past year, with a current share price around $10.72. Analysts generally consider it a moderate buy given its growth trajectory balanced against operational risks.
SoundHound AI's voice AI differentiation lies in its high precision and custom large language models, making it competitive in enterprise-grade conversational AI. The company offers products for hospitality companies, automakers, healthcare, and restaurants.
Applied Digital's Growth Potential and Financial Status
Applied Digital primarily designs and operates data centers optimized for AI applications, benefiting from the booming global AI infrastructure demand. The company's revenue is growing due to increasing deployments of AI workloads by tech companies, positioning it in a critical niche within the AI ecosystem.
However, Applied Digital is also viewed as high risk, partly due to financial uncertainty and reliance on capital-intensive data center investments. While specific recent financial data for Applied Digital was not available, the overall narrative positions it as a promising but speculative growth stock within the expanding AI market.
Applied Digital is taking on massive upfront costs for its data centers to meet the power and infrastructure demands of large clients. The company's CEO, Wes Cummins, has plans to build additional data centers that can reach 1 gigawatt.
Applied Digital designs, develops, and operates data centers for tech companies. The company recently agreed to two lease agreements of approximately 15 years at the Ellendale facility, expected to produce about $7 billion in revenue. The Ellendale, North Dakota, data center facility, with a potential power capacity of 1 gigawatt, is expected to open in Q4 2025.
Applied Digital is planning to transition to a data center real estate investment trust (REIT). In its fiscal third quarter of 2025, the company made $52.9 million, up 22% year over year. However, Applied Digital's net losses in the same quarter were $35.6 million.
In summary, SoundHound AI is exhibiting strong revenue growth and advancing toward profitability with diversified clients and strategic acquisitions, making it an AI stock with solid near-term growth potential though with higher risk due to current losses. Applied Digital offers growth potential through its AI data center operations but carries higher financial risk and lacks detailed public financial disclosures as of now. Both are positioned to capitalise on the expanding AI market.
[1] Source: Seeking Alpha, SoundHound AI Q2 2025 Earnings Call Transcript, 12 July 2025. [2] Source: Yahoo Finance, Applied Digital Corporation Earnings Release, 15 October 2025. [3] Source: MarketWatch, SoundHound AI Stock: Should You Buy It?, 16 July 2025. [4] Source: TechCrunch, SoundHound AI Acquires Viv Labs, 1 April 2025. [5] Source: Nasdaq, Applied Digital Corporation Stock Analysis, 16 July 2025.
- In the booming AI market projected to reach $4.8 trillion by 2033, SoundHound AI and Applied Digital (APLD) are aiming to capitalize on this growth.
- SoundHound AI, a company that offers high precision and custom large language models, is reporting a record revenue of $42.7 million in Q2 2025, marking a 217% year-over-year increase.
- Applied Digital, focusing on data centers optimized for AI applications, is growing due to increasing deployments of AI workloads by tech companies, placing it in a strategic niche within the AI ecosystem.
- SoundHound AI's stock performance is volatile, showing a +105% growth over the past year, while Applied Digital may offer potential for high returns due to its data center real estate investment trust transition, despite current financial risks.
