C3.ai vs. SoundHound: Which AI Stock Has More Upside Right Now?

C3.ai and SoundHound (SOUN) have outperformed the broader market over the last three months, with C3.ai rising 17.8% and SoundHound increasing 9.3%. C3.ai is favored due to its enterprise AI focus, a $450M Air Force deal, and a 419% surge in partner-led bookings in Q4 2025, while SoundHound, despite a 151% revenue surge in Q1 driven by voice AI and acquisitions, faces stiffer competition and a higher valuation.

Analysis

Both C3.ai, Inc. (AI) and SoundHound AI, Inc. (SOUN) have demonstrated significant market outperformance over the past three months, with C3.ai shares climbing 17.8% and SoundHound rising 9.3%, surpassing their industry's 7.4% advance and the S&P 500's 9.2% growth. C3.ai is gaining traction in the enterprise AI sector, evidenced by a substantial $450 million U.S. Air Force contract ceiling for its PANDA platform and a 419% increase in partner-led bookings in fourth-quarter fiscal 2025, with its Microsoft alliance contributing 28 new deals. The company trades at a forward 12-month price-to-sales ratio of 6.87X, below its three-year median. Conversely, SoundHound AI reported a 151% year-over-year revenue surge to $29.1 million in first-quarter 2025, bolstered by acquisitions like Amelia, which is projected to add $45 million in recurring revenues in 2025, and a strong cash position of $246 million with no debt. However, SoundHound recorded an adjusted EBITDA loss of $22.2 million in Q1 and faces intense competition from tech giants in the voice AI space, alongside a higher forward earnings multiple of 21.25X. While Zacks Consensus Estimates for loss per share are narrowing for both companies, the article suggests C3.ai is better positioned due to its established enterprise presence, expanding partnerships, and more favorable valuation compared to SoundHound's high-growth but more speculative profile.

Key Decisions for Investors

• Investors seeking exposure to enterprise AI with demonstrated government and partner traction might consider C3.ai, given its recent contract wins and expanding ecosystem at a relatively lower valuation.
• While SoundHound AI exhibits rapid revenue growth and a strong cash position, investors should weigh this against its current unprofitability, significant competitive pressures from major technology firms, and higher valuation multiples.
• Monitor C3.ai's ability to sustain momentum in federal and commercial partnerships, and SoundHound's progress towards profitability and its capacity to carve out a defensible niche against larger competitors in the voice AI market.