Investing in the stock market is a long-term game. You may see volatility on some days, your stocks could soar on the other and you might also take home more than you’d ever expected. But the trick behind achieving success in the stock market is to cherry-pick stocks. Do not try to time the market and do not make rash decisions but always pick the stocks very carefully. Investing in tech stocks is the right way to go forward. The tech industry has generated significant returns over the past and could have an excellent 2025. Two companies in the tech sector are the talk of the town, for different reasons. One is AI company Palantir (NYSE:PLTR | PLTR Price Prediction) and the other is SoundHound AI (NASDAQ:SOUN). If you want to double your $20K, I can help you choose the right stock to bet your money on. Let’s dive deep into these companies and see the catalysts working for them.
Key points in this article:
- Palantir Technologies and SoundHound AI are both AI winners of 2024 and they started 2025 with a bang.
- However, only one of the two companies saw the stock rally this year.
- If you are looking for solid stocks with massive upside potential, get your hands on the free copy of our brand-new “The Next NVIDIA” report. It has one stock with 10X potential.
Palantir Technologies
One of the best-performing AI stocks, Palantir Technologies, trading at $119 is up 58% year-to-date, and over 400% in the year. The stock has more than doubled the money of many investors and is one of the hot AI picks right now. Palantir provides software and technology services to government and commercial companies.
The company has managed to see massive growth through its Artificial Intelligence platform which was offered to prospective customers through its boot camps. AIP enables users to integrate AI products into their business and also allows developers to build AI agents that can automate tasks. The success of AIP has led to strong revenue growth over the past year. It allows the company to retain customers and attract new clients.
In the fourth quarter, the company beat expectations and reported better-than-expected results. The revenue came in at $828 million, up 36% year-over-year and the EPS stood at 14 cents. Once criticized for only focusing on government agencies, Palantir saw a 64% jump in commercial revenue to $214 million and the government revenue was up 45% year-over-year to $343 million. While the government revenue continues to remain a strong business driver, the growth in commercial clients shouldn’t be overlooked.
The management expects commercial sales to grow 54% this year. Many investors think that the stock is overvalued and is trading at a premium but I believe you get what you pay for. This stock will continue rewarding investors and even if you’re paying a premium today, the recent rally is proof that investors are taking home big gains.
I’d recommended buying the stock in September when it was trading for $30. If you’d bought it then, you’d be sitting on 296% gains today. I am very bullish on Palantir stock and believe that it could have another strong year. Several analysts have upgraded the stock and are bullish on the company.
SoundHound AI
AI company SoundHound was founded in 2005 but has recently gained popularity. It is a voice-assisted AI company that saw the stock soar by more than 100% in a year. This rally has cooled down and the stock is exchanging hands for $10 today. It is down from the peak of $24 it hit in 2024. The company provides technology for restaurants, businesses, and automakers to easily run voice-activated systems.
It enjoyed an early-mover advantage in the industry but it is still in the early stages of growth. The company has done a good job of creating awareness of its service and has gained recognition in the category. However, there are risks associated with this business and the growing investment and competition in the AI segment could put SoundHound in the backseat.
The company has gained strength fundamentally too. In the third quarter, it reported a revenue of $25.1 million, up 89% year-over-year but it hasn’t reported a profit yet. It reported a GAAP net loss of $21.8 million and I believe it will take some time for the company to turn this around. The revenue increase could be driven by the acquisition of Amelia which is an enterprise conversational AI leader.
A majority of the stock’s gains were due to the overall bullish sentiment around AI and the hype of its association with Nvidia (NASDAQ:NVDA). However, Nvidia dumped its entire stake in the company which led to a market sell-off. It held over $8 million worth of shares in SoundHound and the sudden exit has impacted the company. It is too soon to write off SoundHound after Nvidia’s exit but the investment isn’t without the risks.
The company may beat expectations in the fourth-quarter results but the stock will take time to hit the all-time high again. I believe SoundHound needs time to grow and prove its worth in the widely competitive AI industry.
The verdict
Palantir Technologies and SoundHound are both AI players and have seen their stock rally in 2024. While Palantir stock is still moving higher, SoundHound stock has plummeted. It will be interesting to see if SoundHound manages to achieve success without Nvidia’s backing. While Nvidia’s investment in SoundHound was tiny, it did make a lot of difference to the company and the exit isn’t seen as a positive sign. If you are looking to double your $20K, I’d recommend buying Palantir for its steady success, profitability, and strong client portfolio. Since Palantir caters to government clients, it brings revenue stability for the business. Looking at its recent rally, Palantir could keep moving higher and has a long way to go.
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