SoundHound (SOUN) vs. Palantir (PLTR): Which AI Stock Could Double in 2026?

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SoundHound (SOUN) vs. Palantir (PLTR): Which AI Stock Could Double in 2026?

trade ideas :: 9hrs ago :: source - tipRanks

By TipRanks

Two AI companies, SoundHound (SOUN) and Palantir (PLTR), are showing up in every serious investor’s watchlist. As AI use grows across industries, analysts say one of these companies could see its value double. Using TipRanks’ Stock Comparison Tool, we compared SOUN and PLTR to see which AI stock offers higher upside. SOUN carries a Strong Buy rating from analysts with a projected upside of over 115%. On the other hand, PLTR carries a Moderate Buy rating, with modest upside of 30%.

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For context, Palantir focuses on data-driven platforms and government contracts, while SoundHound specializes in rapidly growing voice AI solutions. Like Palantir in its early years, SoundHound is aiming at a huge market with a specialized AI platform that can scale across industries. So far this year, SOUN and PLTR have fallen more than 33% and 17%, respectively.

SoundHound AI (SOUN)

SoundHound has delivered nearly 100% year-over-year revenue growth in 2025, driven by strong demand for its voice AI technology. However, the stock has struggled as investors worry about profitability, rising competition, and whether the company can sustain its rapid growth.

Valuation is another concern. SoundHound’s forward price-to-sales ratio is 12.17, far higher than the sector median of around 2.95. Its trailing 12-month ratio of 16.03 is also well above the industry average, suggesting the stock is expensive—though it still offers strong long-term growth potential.

Analysts Are Bullish on SOUN Stock

H.C. Wainwright’s analyst Scott Buck remains one of the most bullish voices on SOUN stock. He has a Street-high price target of $20, implying an upside of almost 200%. He points to strong organic growth, supported by new deals and customer renewals across industries. Buck also expects the company to reach adjusted EBITDA break-even by late 2026, even as it continues to invest heavily in growth. He pointed out that this could weigh on margins in the near term, but the long-term outlook is intact.

Meanwhile, D.A. Davidson analyst Gil Luria highlighted SoundHound’s solid financial position, noting its current ratio of 4.59. He added that the company’s core voice AI business remains strong and may be undervalued following the recent pullback in the stock.

Palantir (PLTR)

Like SoundHound, Palantir also posted strong results in 2025, with revenue rising 56% year over year to $4.47 billion. The company reported about $1.63 billion in profit, highlighting its transition into a highly profitable business. Notably, its U.S. commercial segment was a key growth driver, with revenue surging 137% in the latest quarter.

However, Palantir’s valuation remains elevated. Its forward price-to-earnings ratio stands at 130.91, well above the sector median of 29.10, reflecting the premium investors are willing to pay for its proven track record and stable government and enterprise contracts.

Analysts’ Views on PLTR

While some analysts warn that Palantir’s stock looks expensive, others believe its strong fundamentals and AI positioning justify the premium.

On Wall Street, Citi analyst Tyler Radke has one of the highest price targets at $260, implying about 75% upside. He noted that the company’s 2026 outlook significantly improved sentiment, with management guiding for 61% revenue growth—well above prior estimates. Radke highlighted bookings as a key takeaway from the latest results, with total contract value reaching $4.26 billion—more than double last year—signaling strong and sustained demand.

On the other hand, Benchmark analyst Yi Fu Lee remains cautious. He maintains a Hold rating, arguing that the current valuation suggests investors are already pricing in near-perfect execution over the next few years.

Conclusion

Palantir stands out as the more stable and balanced business, backed by strong government and commercial contracts, though its upside may be more limited in the short term. In contrast, SoundHound offers a lower entry price and higher growth potential, but comes with greater risk.

Ultimately, the choice comes down to risk appetite—SoundHound is a high-risk, high-reward bet, while Palantir is the more expensive but steadier long-term play.

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