Free Trial

The Next 2 AI Winners Have Triple-Digit Upside Potential

Human brain 2d illustration, Digital illustration of Human brain structure, Creative brain concept background, innovation background — Photo

Key Points

  • SoundHound and AppLovin are monetizing AI today and have a robust trajectory for growth in 2025 and 2026. 
  • Analysts are lifting their price targets, leading the stock to new all-time high prices.
  • The analysts' revision trend is expected to continue lifting the stocks in 2025 because forecasts are cautious and outperformance likely. 
  • 5 stocks we like better than SoundHound AI.

If you are looking for the next two tech winners, stocks with triple-digit upside potential that may be unlocked in 2025, look no further than SoundHound NASDAQ: SOUN and AppLovin NASDAQ: APP. These companies are monetizing AI today, establishing industry-leading technology, and improving their outlooks for long-term growth in ways that analysts are noticing. The business trends are sufficient to drive their stock prices higher over time; the analysts' trends and technical chart patterns suggest that the value could be unlocked in 2025. 

SoundHound Gains Traction: Hyper Growth Accelerating on Business Wins

SoundHound AI Today

SoundHound AI, Inc. stock logo
SOUNSOUN 90-day performance
SoundHound AI
$20.24 -0.19 (-0.93%)
(As of 12/24/2024 05:19 PM ET)
52-Week Range
$1.62
$24.08
Price Target
$12.07

SoundHound’s stock price rocketed in 2024 and will likely continue rising in 2025 because its hypergrowth is accelerating, and MarketBeat’s reported consensus forecast is likely to be low. Outperformance is expected. The latest results include another client win, which is important for increasing revenue and affirming business, paving the way for additional client wins in 2025.

The affirmation is important because McDonald’s is a potential client. McDonald’s scrapped its first attempt at AI-enabled call services and is reportedly reviewing SoundHound, now used in over 10,000 restaurant locations, for its more than 40,000 locations. Other restaurant chains may follow suit, and SoundHound technology is well-suited for numerous industry verticals because of how it functions. Unlike most voice recognition, which converts sound to text to meaning, SoundHound technology improves accuracy and saves time by going directly from sound to meaning. 

The analysts' trends provide a strong tailwind for SoundHound stock. The consensus price target of $12 lags the market significantly but does not reflect the strength of the tailwind provided. The FQ3 2024 earnings report caused analysts at Wedbush and HC Wainwright to more than double their price targets, lifting the consensus by nearly 100% in under a week, pointing to a mid-twenty-dollar price point. The two targets average $24 or 20% above the current price action in late December, and the revision trend is expected to continue in 2025. 

Sell-side interest is another strong tailwind for this market. In 2024, institutions are buying this stock at a pace double that of sellers, increasing their position to over 20%. 20% isn’t a large institutional interest, but it is growing, and with plenty of stock available, the tailwind it provides could remain in place for many quarters. Technically, the move to new highs in December is very bullish for this market and suggests a move into the $30 range is likely. 

SoundHound SOUN stock chart

AppLovin Pull-Back Is a Buying Opportunity That Shouldn’t be Missed

AppLovin Today

AppLovin Co. stock logo
APPAPP 90-day performance
AppLovin
$341.83 -2.99 (-0.87%)
(As of 12/24/2024 05:19 PM ET)
52-Week Range
$37.40
$417.64
P/E Ratio
103.59
Price Target
$310.71

AppLovin’s stock price pulled back sharply in early December when it was passed up for inclusion in the S&P 500. However, the company’s business has driven the stock price to its all-time high levels, and the S&P 500 inclusion may come later, making the pullback an attractive buying opportunity. Results in 2024 include growth in the 30% range, outperformance, and a move into the eCommerce industry expected to sustain top-line growth over the next few years. eCommerce is well-suited for AppLovin’s platform, which uses machine learning to serve ads to targeted markets. 

The analysts' response to the news is as bullish as the response to SoundHound. The revisions since the Q3 report was released lifted the consensus price target by nearly 50%, leading the market to a new all-time high. The high-end range has this stock trading near $450, about 35% above the price action in late December, with revisions expected to continue rising as 2025 progresses. Takeaways from the chatter are that AppLovin will be one of the better growth stocks in 2025 as the core business remains strong and eCommerce adds incrementally to it. 

Among the critical details from the price chart is the trading volume. This stock has seen its volume increase steadily for years, hitting new highs in 2024. This indicates increasing ownership, conviction, and liquidity that supports the uptrend. The uptrend in volume is due partly to institutional activity, which is ramping higher along with the share price as institutions buy on the dips. Another trend that is expected to continue in 2025. 

AppLovin APP stock chart

Should you invest $1,000 in SoundHound AI right now?

Before you consider SoundHound AI, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SoundHound AI wasn't on the list.

While SoundHound AI currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Metaverse Stocks And Why You Can't Ignore Them Cover

Thinking about investing in Meta, Roblox, or Unity? Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment.

Get This Free Report
Thomas Hughes
About The Author

Thomas Hughes

Contributing Author

Technical and Fundamental Analysis

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
AppLovin (APP)
2.9591 of 5 stars
$341.83-0.9%N/A103.59Moderate Buy$310.71
SoundHound AI (SOUN)
2.0537 of 5 stars
$20.24-0.9%N/A-56.22Moderate Buy$12.07
Compare These Stocks  Add These Stocks to My Watchlist 


Featured Articles and Offers

Recent Videos

Why Energy Stocks Are Poised for Explosive Growth in 2025
From Landfills to Profits: Opal Fuels CEO Shares How the Company Turns Trash into Cash
The Real Reason Tesla Stock Is Soaring – and Why Tech Expert Says It Won’t Stop

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines