Identifying companies that are well positioned to serve a massive growth opportunity can help you land those elusive multibaggers. All you need is one growth stock to work out better than you could have imagined to change your life. Focusing on the companies that are helping build the future, and showing strong growth because of it, can steer you toward the right stocks.
To help you in your search, here are two growing companies playing important roles in the global adoption of artificial intelligence (AI).
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1. SoundHound AI
SoundHound AI (SOUN 10.20%) has seen its stock skyrocket 455% over the last three years (at the time of this writing). Businesses are turning to it for AI-powered voice assistants, a technology SoundHound has been investing in for 20 years. It has gained a strong foothold in the restaurant industry, with Red Lobster recently partnering with SoundHound on AI-powered phone ordering. But the company has set its sights on serving all enterprises, which could spell monster returns for investors.
SoundHound AI was recently named a leader in the IDC MarketScape for Worldwide General-Purpose Conversational AI Platforms 2025 Vendor Assessment. Its growing revenue indicates a business with huge momentum. Revenue more than tripled in Q2 to nearly $43 million. That brings its trailing-12-month revenue to $131 million, up 137% year over year.
While acquisitions have partly boosted its growth, SoundHound AI has a fundamentally profitable business model. Over the long term, it can monetize its technology through royalties, subscriptions, and advertising. Management expects to be profitable on an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) basis at the end of 2025.
SoundHound is making great progress expanding beyond the restaurant market. In the second quarter, it made deals with companies across healthcare, retail, and financial services.
As it grows, SoundHound AI is building a strong competitive advantage built on data. It recently exceeded 1 billion queries per month on its platform. This data can help improve its AI capabilities and reflects its growing presence across multiple industries.
SoundHound's stock has a relatively low market cap of nearly $8 billion at the time of writing. The addressable market it is tapping into is estimated well above $100 billion, so this is a stock that could be worth significantly more in 20 years than it is today.
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2. Cloudflare
More than 20% of all websites use Cloudflare (NET 4.01%). It acts as a security check between a visitor and a company's website. The stock has soared 292% over the last three years, but as the company pivots to meeting demand for AI-driven web traffic, investors could see a lot more gains over the long term.
Cloudflare's main competitive advantage is an extensive global network that covers over 335 cities. This allows it to deliver efficient and scalable service to internet service providers. As it adds more servers to the network, the company's competitive moat widens from greater efficiency.
Cloudflare has consistently delivered year-over-year growth of about 25%. In Q2, its revenue grew 28% over the year-ago quarter, and this momentum should continue as AI begins to introduce a whole new avenue of growth for the company.
It just signed a $15 million deal with a rapidly growing AI company for its Workers AI product. This service allows companies to run AI models on edge computing devices on the company's network. Cloudflare has relationships with several leading AI companies, which positions it well for growth as AI agents and models begin to generate an increasing amount of web traffic. Management is enthusiastic to leverage this competitive position to serve new opportunities, such as autonomous transactions completed online between AI agents.
Analysts expect the company's earnings to grow at an annualized rate of 24%. With AI enhancing its growth prospects, Cloudflare should be a solid growth stock to hold for many years.
