SoundHound AI (SOUN 4.11%) bills its technology as "the conversational AI that speaks for itself." The company's voice AI technology has spurred many others to talk about SoundHound, though. The fact that SoundHound's stock has been a seven-bagger over the last three years underscores the point.
However, I think there's another company with voice AI technology that's a better long-term bet than SoundHound AI. It's a tech king and a cash cow with a market cap of over $3.6 trillion. I'm referring to Apple (AAPL 1.93%).
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Two different strategies
You might think that evaluating Apple versus SoundHound AI is like comparing (no pun intended) apples and oranges. And you'd be right – to an extent.
Apple and SoundHound AI are more like ships passing in the night than direct competitors. Apple's forte is consumer technology and services, with a massive ecosystem built around its ubiquitous iPhone. SoundHound focuses on a B2B approach, securing customers across various industries that can benefit from voice AI technology.
However, if you don't believe that Apple is a major player in voice AI, just ask Siri. Or, better yet, wait until next month to ask Siri, when Apple is reportedly planning to unveil an upgraded version of its personal AI assistant, powered by Alphabet's (GOOG 1.68%) (GOOGL 1.66%) powerful Google Gemini 3.0 large language model (LLM).
The most obvious battleground for Apple and SoundHound AI is in the automotive market. SoundHound has deals with carmakers including Stellantis (STLA 0.43%) and Hyundai. But Apple boasts a much longer list of auto companies that integrate with its CarPlay. The company's next-generation CarPlay Ultra, which interfaces with a vehicle's dashboard instruments, makes Apple an even more direct competitor to SoundHound.
Apple also poses another, less visible threat to SoundHound. While SoundHound's technology is used in restaurant drive-through ordering systems, many restaurants allow ordering via mobile apps. Instead of being the "voice of the drive-through" like SoundHound, Apple can position itself as the meal-ordering agent in consumers' pockets and purses.
NASDAQ: SOUN
Key Data Points
The bank versus the burn
Any discussion of the merits of Apple versus SoundHound AI as investing choices has to delve into the two companies' financials. As you might expect, Apple comes out on top in most areas.
Apple generated revenue of $102.5 billion in its latest reported quarter. SoundHound's $42 million in revenue in the third quarter of 2025 was only a tiny fraction of Apple's total.
SoundHound AI posted a net loss in Q3 of $109.3 million based on Generally Accepted Accounting Principles (GAAP). Apple reported a profit in its latest quarter of $14.7 billion.
Apple's cash position stands at roughly $54.7 billion. SoundHound's cash and cash equivalents of $269 million are almost pocket change for the giant iPhone maker.
However, SoundHound AI comes out on top in two financial metrics. First, its year-over-year revenue growth of 68% in Q3 is much higher than Apple's latest growth rate of around 8%. Second, SoundHound has no debt, while Apple's debt totals $112.4 billion.
NASDAQ: AAPL
Key Data Points
Apple is the better bet
I don't view SoundHound AI stock as a horrible pick. The company's technology and growth are impressive. However, I believe that Apple is the better bet for long-term investors.
Apple's next-gen CarPlay Ultra could gain momentum with automakers. While SoundHound's in-car accuracy gives the company an advantage now, that could change quickly as Apple improves its AI capabilities.
Importantly, Apple has more high-growth opportunities than SoundHound does. Although SoundHound talks about its agentic AI portfolio, Apple is likely to be the bigger winner in the rapidly growing AI agent market. I also predict that Apple will profit tremendously in the smart glasses market.
I would say that SoundHound AI is like the hare in Aesop's famous fable, while Apple is the tortoise. That isn't a good analogy, though. Over the last 12 months, Apple's shares have risen while SoundHound's shares have fallen. Apple isn't just the better bet for long-term investors; it's been the better choice for short-term investors, too.
