In This Article:
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SoundHound AI is a rapidly growing specialist in conversational artificial intelligence (AI), and it amassed an impressive list of customers.
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DigitalOcean provides cloud services to small and mid-sized businesses, and now it's helping those customers tap into the AI revolution.
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There are positives and negatives for both, but one clearly looks like the better investment right now.
SoundHound AI (NASDAQ: SOUN) is a leading developer of conversational artificial intelligence (AI) software, and its revenue is growing at a lightning-fast pace. Its stock soared by 835% in 2024 after Nvidia revealed a small stake in the company, although the chip giant has since sold its entire position.
DigitalOcean (NYSE: DOCN) is another up-and-coming AI company. It operates a cloud computing platform designed specifically for small and mid-sized businesses (SMBs), which features a growing portfolio of AI services, including data center infrastructure and a new tool that allows them to build custom AI agents.
With the second half of 2025 officially underway, which stock is the better buy between SoundHound AI and DigitalOcean?
SoundHound AI amassed an impressive customer list that includes automotive giants like Hyundai and Kia and quick-service restaurant chains like Chipotle and Papa John's. All of them use SoundHound's conversational AI software to deliver new and unique experiences for their customers.
Automotive manufacturers are integrating SoundHound's Chat AI product into their new vehicles, where it can teach drivers how to use different features or answer questions about gas mileage and even the weather. Manufacturers can customize Chat AI's personality to suit their brand, which differentiates the user experience from the competition.
Restaurant chains use SoundHound's software to autonomously take customer orders in-store, over the phone, and in the drive-thru. They also use the company's voice-activated virtual assistant tool called Employee Assist, which workers can consult whenever they need instructions for preparing a menu item or help understanding store policies.
SoundHound generated $84.7 million in revenue during 2024, which was an 85% increase from the previous year. However, management's latest guidance suggests the company could deliver $167 million in revenue during 2025, which would represent accelerated growth of 97%. SoundHound also has an order backlog worth over $1.2 billion, which it expects to convert into revenue over the next six years, so that will support further growth.