Better Artificial Intelligence (AI) Stock: BigBear.ai vs. SoundHound AI | Nasdaq

This article by Harsh Chauhan from The Motley Fool compares two AI companies with contrasting 2025 stock performance trajectories.

BigBear.ai has surged 47% this year despite struggling fundamentals, including an 18% revenue decline to $40 million in Q2 and heavy reliance on government contracts. The company faces margin compression, increased losses, and a largely unfunded revenue backlog of $380 million. Meanwhile, SoundHound AI dropped 21% despite impressive growth metrics, including 217% revenue growth to $43 million and guidance for doubling 2025 revenue to $169 million.

• BigBear.ai's stock surge appears unjustified given declining revenues and poor financial performance
• SoundHound AI demonstrates strong fundamentals with accelerating growth in conversational AI markets
• SoundHound's $1.2 billion revenue backlog and expanding customer base across multiple industries show promise
• The article suggests SoundHound AI presents better long-term investment potential despite current high valuation