It's a bear vs. a hound in today's battle royale!
Reasonably priced artificial intelligence (AI) growth stocks are rare breeds these days, as share prices of AI stocks have skyrocketed. However, two niche AI companies haven't seen the explosive growth of these heavy hitters ... at least, not yet.
Image source: Getty Images.
Shares of AI voice recognition specialist SoundHound AI (SOUN 3.59%) are trading up just 14.7% over the last five years, while defense and security-focused BigBear.ai's (BBAI 1.69%) stock is down 62%. But only one of these niche AI players is likely to make you rich.
The battle
SoundHound has developed a voice AI chatbot that's primarily used for placing restaurant orders by phone or at a drive-thru window, and in cars as a hands-free voice assistant. However, the company is trying to branch out into other industries, particularly finance and insurance.
NASDAQ: SOUN
Key Data Points
Meanwhile, BigBear.ai has been very successful in the niche markets where it operates. Its TrueFace AI-powered facial recognition platform is in use at security screening checkpoints at numerous U.S. airports, including O'Hare International Airport in Chicago, one of the busiest in the country. The Department of Defense uses its ConductorOS edge computing platform to ensure secure communications in remote locations.
The problem for BigBear.ai -- and one likely reason its revenue has been falling in recent quarters -- is that these defense-focused applications aren't really useful to a wider market. SoundHound's AI-powered voice chatbot, on the other hand, has the chance to be adopted by nearly any business that could benefit from a no-wait customer service help line.
That's why, even though SoundHound's technology faces a lot of potential competition, it's the winner of this battle.
