SoundHound AI vs BigBear.ai: Who will become Wall Street's next AI darling in 2025 — and here's the AI stock you should pick to double by 2027
Shares of SoundHound AI (NASDAQ: SOUN) and BigBear.ai (NYSE: BBAI) have exploded over the past year, soaring 182.2% and 423.7% respectively, as excitement around artificial intelligence (AI) reached new highs. But now, with both companies showing vastly different financial pictures and growth strategies, many investors are asking: Which AI stock offers the better long-term opportunity? Here's a detailed breakdown of both stocks, focusing on performance, revenue, partnerships, and potential risks.
How is SoundHound AI growing its revenue and expanding its market reach?
SoundHound AI's growth has been explosive. In Q1 2025, it reported $29.1 million in revenue, marking a 151% year-over-year jump. The company expects 2025 revenues to land between $157 million and $177 million, a sharp rise from $84.7 million in 2024. More impressively, its booking backlog now stands at $1.2 billion, reflecting strong future demand.
SoundHound's addressable market is huge—an estimated $140 billion, particularly in conversational AI, a segment projected to grow from $17 billion in 2025 to nearly $50 billion by 2031 (source: MarketsandMarkets). The company is already powering voice automation for major restaurant chains like Chipotle Mexican Grill (NYSE: CMG) and Casey's General Stores (NASDAQ: CASY), making it well-positioned to benefit from the hospitality industry's shift toward automation amid ongoing labor shortages.
SoundHound AI (SOUN) – Q1 2025 Full Data
Current Share Price:
$12.86
52-Week High:
$25
Recent Low:
$0.97
Q1 Revenue:
$29.1 million (151% year-over-year growth)
2024 Revenue:
$84.7 million
2025 Revenue Forecast:
$157 million to $177 million
3-Year Avg Revenue Growth:
69%
Trailing 12-Month Revenue:
$102 million
Booking Backlog:
$1.2 billion
Total Addressable Market (TAM):
$140 billion in conversational AI
Cash Reserves:
$245.8 million
Total Assets:
$587.5 million
Total Liabilities:
$190.5 million
Debt Status:
Negligible debt
Adjusted Loss per Share:
$0.06
BigBear.ai (BBAI) – Q1 2025 Full Data
Current Share Price:
$8.66
Q1 Revenue:
$34.8 million (5% year-over-year growth)
2025 Revenue Forecast:
$160 million to $180 million
Adjusted EBITDA:
-$7 million (compared to -$1.6 million last year)
Backlog:
$385 million (up 30% year-over-year)
Total Liabilities:
$198.5 million
Long-Term Debt:
$100.6 million
Net Loss in Q1:
$62 million
Is BigBear.ai too dependent on government contracts for long-term stability?
BigBear.ai, while not growing as fast as SoundHound, plays a unique role in national security and defense AI. The company's software is used for U.S. Navy submarine construction and facial recognition at airports, giving it strong government ties.
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In Q1 2025, BigBear.ai posted $34.8 million in revenue, up 5% year over year. For full-year 2025, the company is guiding between $160 million and $180 million in revenue, showing modest but steady growth.
But its dependency on federal contracts may be a double-edged sword. While it has a growing backlog of $385 million, these deals are subject to political risks and budget shifts. That said, the recent appointment of Kevin McAleenan, former U.S. Homeland Security Secretary, as CEO could boost BigBear's ability to secure high-profile contracts.
Which company is better positioned financially to survive and scale?
SoundHound AI appears to have the healthier balance sheet. It ended Q1 2025 with $245.8 million in cash, total assets of $587.5 million, and liabilities of $190.5 million, meaning it holds more cash than debt—a good sign for future investments and sustainability.
Meanwhile, BigBear.ai has $198.5 million in liabilities, including $100.6 million in long-term debt. Its adjusted EBITDA worsened from -$1.6 million to -$7 million year over year due to rising R&D expenses. This suggests a longer path to profitability and higher risk, especially if government contract awards slow down.
Why SoundHound AI is the better long-term pick than BigBear.ai in 2025
If you're looking to invest in a high-growth AI stock in 2025,
SoundHound AI (SOUN)
is emerging as the stronger long-term contender over
BigBear.ai (BBAI)
. Here's why SoundHound AI deserves a closer look — and may even double by 2027:
🔹 Stronger revenue growth and momentum
SoundHound's revenue surged
151% year-over-year in Q1 2025
, while BigBear's growth lagged at just
~5%
.
SOUN is projecting
95–100% revenue growth
in 2025, with a clear roadmap toward breakeven by year-end.
🔹 Superior financial health
SoundHound has
$246 million in cash
and
no long-term debt
, giving it flexibility and resilience.
In contrast, BigBear.ai is burdened with nearly
$100 million in debt
and over
$190 million in total liabilities
, increasing its financial risk.
🔹 More diversified and scalable client base
SoundHound has secured partnerships with global brands like
Mercedes-Benz, Chipotle, Hyundai, and NVIDIA
.
BigBear.ai mostly relies on
U.S. government contracts
, which can be less scalable and more exposed to budget uncertainties.
🔹 Future outlook and valuation
SoundHound holds a
$1.2 billion booking backlog
, reflecting strong future demand.
While SOUN trades at a premium (~18x sales), its valuation is supported by fast growth. BigBear's cheaper valuation (~4x sales) reflects slower growth and execution risk.
Can SoundHound AI stock realistically double from here?
Even after pulling back from its 52-week high of $25, SoundHound AI—currently trading around $11—has significant upside potential. If it continues to hit revenue milestones and improves its margins, many analysts believe it could double in the next 12–24 months.
SoundHound's three-year average growth rate stands at 69%, and in the last year alone, revenues jumped from $51 million to $102 million. Its automotive partnerships with Mercedes-Benz, Hyundai, Kia, and Stellantis brands (Peugeot, DS Automobiles, Opel) have deepened in 2025, with new voice AI rollouts across Europe.
In April 2025, it also partnered with Tencent Intelligent Mobility, bringing its voice tech to more international automakers. Additionally, the acquisition of Amelia in August 2024 brought a strong foothold in enterprise AI customer service across finance, insurance, and healthcare—sectors ripe for automation.
If SoundHound's revenue hits $250 million by 2027, and even with a P/S compression from 40x to 30x, the stock could reasonably reach $20 per share, a near 2x from current levels.
What risks should investors consider before buying SoundHound AI or BigBear.ai?
Despite its strengths, SoundHound is not profitable yet, with $188 million in losses over the past 12 months. Its high valuation also means any slowdown in revenue could send the stock lower. Moreover, the voice AI space is competitive, with major players like Amazon and Google also investing heavily.
BigBear.ai faces similar profitability issues, with continued losses and cash burn. Its reliance on government contracts adds another layer of unpredictability, especially if federal budgets tighten.
Historically, both stocks have shown extreme volatility. For example, SOUN fell from $15 to under $1 in late 2022, while BBAI has also experienced major swings—making them unsuitable for conservative investors.
Metric
SoundHound AI (SOUN)
BigBear.ai (BBAI)
Revenue Growth
151% YoY, doubling annually
5% YoY, moderate pace
Booking Backlog
$1.2 billion
$385 million
Revenue Forecast
$157M–$177M for 2025
$160M–$180M for 2025
Balance Sheet
$245.8M cash vs $190.5M liabilities
$198.5M total liabilities, $100.6M debt
Profitability Path
Expected by end of 2025
Negative EBITDA, widening loss
Sector Exposure
Automotive, enterprise, restaurant automation
Defense, homeland security
Risk Level
High valuation, tech competition
High debt, reliant on government contracts
So, which AI stock is the better buy right now?
Based on current data, SoundHound AI appears to offer a more compelling growth story with its high revenue growth, expanding commercial partnerships, and strong financial position. It has diversified its customer base across automotive, enterprise, and restaurant sectors, reducing dependency on any single stream.
While BigBear.ai has a niche edge in defense and government AI, its weaker balance sheet and slower sales growth make it less attractive from a risk-reward perspective in the short to mid-term.
Both stocks carry risk, but for investors looking for high-growth exposure to AI-powered voice solutions, SoundHound AI seems better placed to deliver returns over the next.
FAQs:
Q1: Is SoundHound AI stock a good buy in 2025?
Yes, SoundHound AI stock looks promising with strong revenue growth, major partnerships, and low debt.
Q2: What makes BigBear.ai stock riskier than SoundHound AI?
BigBear.ai relies heavily on government contracts and has weaker financials compared to SoundHound AI.
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