Well-known AI players SoundHound AI (SOUN) and BigBear.ai (BBAI) recently reported their Q3 results, offering investors a clearer view of their progress and challenges. While SoundHound delivered strong revenue growth and raised its outlook, BigBear.ai reported softer sales. Nonetheless, both companies surpassed analysts’ expectations, helping renew investor confidence in the AI sector. As both stocks move past earnings, investors are now wondering which AI stock looks like the better 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.
SoundHound AI (NASDAQ:SOUN)
In Q3, SoundHound reported revenue of $42 million, up 68% from last year, beating the expected $40.5 million. The growth was mainly driven by growing enterprise adoption and new customers in the automotive, healthcare, financial, and consumer sectors. Although SoundHound still posted a net loss of $0.03 per share, it was better than analysts’ forecast of a $0.09 loss and an improvement from last year’s loss of $0.04.
Looking ahead, SoundHound raised its full-year revenue forecast to $165–$180 million, above its previous $160–$178 million estimate.
Is SOUN a Good Stock to Buy?
Despite strong Q3 results, SOUN shares have fallen amid a broader market sell-off, slipping nearly 30% over the past month. Still, analysts remain optimistic about the company’s long-term growth, impressed by its solid Q3 performance and expanding customer base.
After the earnings release, H.C. Wainwright’s four-star-rated analyst Scott Buck reaffirmed his Buy rating on SOUN, implying over 90% upside. Buck pointed to the company’s strong growth prospects and improving profitability, noting that management expects revenue to climb at least 40% by 2026, ahead of market forecasts. He believes the company is close to turning profitable, supported by higher margins and a clear path to positive earnings, which are key drivers of his bullish outlook.
Overall, solid revenue guidance and renewed analyst confidence make the recent pullback in SOUN stock look like a potential buying opportunity for long-term investors.
BigBear.ai Holdings (NYSE:BBAI)
On the other hand, investors reacted positively to BigBear.ai’s Q3 results, with shares rising nearly 6% since the release. Year-to-date, BBAI stock has gained about 36%.
For context, BigBear.ai’s Q3 revenue fell 20% to $33.1 million. Revenue dipped due to lower volumes in certain U.S. Army programs. However, it still topped analyst estimates of $31.81 million. The company also posted a net loss of $0.03 per share, beating expectations of a $0.07 loss. Alongside its results, BigBear.ai announced plans to acquire Ask Sage, a generative AI platform for defense and national security, in a $250 million deal.
The better-than-expected results and ongoing strategic expansion have renewed investor optimism about BigBear.ai’s growth potential heading into 2026.
Is BBAI a Good Stock to Buy?
Following its Q3 print, Wainwright’s Buck also reaffirmed his Buy rating on BBAI, predicting over 30% upside from the current level. Buck’s bullish view on BigBear.ai centers on the Ask Sage acquisition, which he believes will strengthen the company’s position in the defense and national security markets and also improve margins and generate steady recurring revenue.
While Q3 results were mixed, Buck pointed out that revenue exceeded expectations and that BigBear.ai’s strong cash position gives it room to pursue future growth and acquisitions. Despite near-term risks like the government shutdown, he remains optimistic about the company’s long-term outlook.
SOUN or BBAI: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared SOUN and BBAI to see which AI stock analysts favor. Both stocks have a Moderate Buy rating from analysts. SOUN stock has a price target of $17.20, implying an upside of 28%. Meanwhile, BBAI’s stock price target of $6.33 implies a modest growth of 4.5% from current levels.
