SoundHound AI (SOUN 5.67%) emerged as a force to be reckoned with in the conversational artificial intelligence (AI) space. The company's revenue soared over 217% year over year to $42.7 million in the second quarter of 2025, driven by robust adoption of its AI-powered voice offerings in the automotive, restaurant, and enterprise segments. The company also processed over 1 billion queries on a monthly basis in the second quarter.
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SoundHound AI now expects 2025 revenue to fall in the range of $160 million to $178 million, up from its prior estimate of $157 million to $177 million. The strong business momentum also translated into exceptional share price gains. Shares of the company soared by 575% in the past three years.
NASDAQ: SOUN
Key Data Points
Analysts expect SoundHound AI revenue to be around $267.1 million in 2027. Assuming that its elevated price-to-sales multiple of 55.3 reverts to its historical three-year average of 35.2 by the end of 2027, SoundHound AI's market capitalization can reach roughly $9.4 billion in the next two years.
But CRISPR Therapeutics (CRSP 3.92%) and Semtech (SMTC 2.01%) can realistically surpass SoundHound's market cap in the next two years. Here's how that seems possible.
CRISPR Therapeutics
Gene-editing company CRISPR Therapeutics has become one of the most promising growth stories in the midcap biotech space. The company's shares are up 63% so far in 2025. With a market capitalization of $5.84 billion, CRISPR's market capitalization may have to grow nearly 65% in the next couple of years to surpass that of SoundHound AI. This growth trajectory seems plausible, as CRISPR is focused on rapidly advancing its proven gene-editing platform into medicines for sickle cell, cardiovascular, and autoimmune diseases.
NASDAQ: CRSP
Key Data Points
Unlike many biotech companies, CRISPR already has a commercialized therapy, Casgevy, approved for sickle cell disease and transfusion-dependent beta thalassemia indications. Developed in collaboration with Vertex Pharmaceuticals, administering Casgevy starts with patient initiations or referrals to treatment centers, followed by cell collections, drug manufacturing, and then dosing patients in a hospital setting. The companies have activated over 75 treatment centers in more than 10 countries globally.
CRISPR has seen rising patient referrals and expects productivity at its treatment centers to grow as its experience in cell collection increases. The company estimates the target addressable market for Casgevy at nearly 60,000 patients. Priced at $2.2 million per patient, the company claims it is targeting a large, multibillion-dollar market opportunity. Hence, while the revenue contribution of Casgevy in the recent quarter was minimal, CRISPR expects sales to ramp up and help it break even by 2028.
Additionally, CRISPR is also advancing its research pipeline. Its investigational cardiovascular therapy, CTX310, has shown a strong ability to reduce bad fats (LDL cholesterol and triglycerides) in the blood in early clinical trials. CRISPR is also working on another investigational drug, CTX320, targeting Lp(a), a key genetic factor in heart disease. If successful, the company could tap into a much larger preventive care market for cardiovascular conditions. The company has highlighted significant partnership interest from large pharmaceutical companies for its cardiovascular drug candidates. With the cardiovascular drug market estimated to grow from $228.9 billion in 2025 to $359.6 billion in 2035, the cardiovascular pipeline could be a significant catalyst in the long run.
CRISPR ended the second quarter with $1.7 billion in cash, allowing the company to invest in the commercial rollout of Casgevy and advance its research pipeline without raising additional capital. The company's mix of commercial revenue, robust research pipeline, and solid cash balance can support its share price gains in the coming years.
Semtech
Semtech designs high-performance analog and mixed-signal chips to improve connectivity in data centers and among connected devices. Shares of the company have soared by 10% so far in 2025 and by 52% in the past year. So, there is a realistic chance that the company's market cap of $6.04 billion can rise by roughly 55% to surpass SoundHound AI's market cap in the next couple of years.
NASDAQ: SMTC
Key Data Points
Under CEO Hong Hou, Semtech's debt decreased by $879 million over the past year. This helped reduce the interest expense for the second quarter of fiscal 2026 (ended July 27, 2025) by 80% year over year. The company's net leverage ratio has also improved year over year from 8.8 to 1.6 in the second quarter. These initiatives have freed funds that can be invested in core areas such as data center interconnects, LoRa wireless communication technology to connect Internet-of-Things (IoT) devices, and the PerSe smart sensing platform.
The data center business has become the main growth engine. In the second quarter, data center revenue soared 92% year over year to $52.2 million. This has driven overall infrastructure sales up by 39% year over year to $73.4 million. Hyperscalers are increasingly using the company's FiberEdge analog optical chips and CopperEdge active copper cables as they upgrade network bandwidth from 400 gigabits to 800 gigabits. The company is also developing 1.6 terabit optical transceiver chipsets (to help transceivers convert electrical signals into light), expected to be deployed in massive AI clusters in 2026.
Besides data centers, PerSe is also gaining share in smartphones and smart glasses to ensure precise gesture control with low power consumption. LoRa technology is also being widely used in connected devices for long-range connectivity with low power usage.
The strong business momentum has translated into robust financials. In the second quarter, revenue grew 20% year over year to $257.6 million, while adjusted gross margin was up 280 basis points year over year to 53.2%. Adjusted operating margin also grew 480 basis points year over year to 18.8%. Free cash flow was $41.5 million, a dramatic improvement from negative $8.4 million in the same quarter of the prior year.
If Semtech keeps executing on its existing growth strategy and expanding margins and cash flows, this cloud and AI infrastructure player can reach a market capitalization higher than SoundHound AI by 2027.
