AI, SMCI, or SOUN: Which AI Stock May Give the Highest Upside?

AI, SMCI, or SOUN: Which Artificial Intelligence Stock Could Deliver the Highest Upside? – TipRanks.com

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Artificial intelligence ( AI ) companies have been in focus since the success of OpenAI’s ChatGPT. We will discuss three Artificial companies and decide which one, in our opinion, has the greatest upside potential.

Artificial intelligence ( AI ) has been a key theme that has been influencing the U. S. stock market, especially since the success of OpenAI’s ChatGPT. Concerns about the significant investments being made and the fierce competition in the conceptual AI area have risen since China’s DeepSeek’s emergence. While scrutiny is being put on higher valuations of AI stocks and anticipated returns on significant investments, the enormous growth potential makes many companies in the AI industry appealing. Using TipRanks ‘ Stock Comparison Tool, we placed C3. ai ( AI), Super Micro Computer ( SMCI), and SoundHound AI ( SOUN) against each other to pick the AI stock that could generate the highest upside, according to analysts.

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C3. ai ( NYSE: AI )

C3. ai offers organization AI software that enables electronic transformation. The company’s products are seeing growing implementation, with Q2 FY25 marking the seventh consecutive quarter of accelerating revenue growth. Incidentally, in November 2024, C3. ai announced an expanded collaboration with Microsoft ( MSFT), under which Microsoft’s Cloud will be its preferred cloud service. The firm anticipates that this partnership will help to promote the adoption of its AI program.

Meanwhile, AI stock has fallen more than 17 % so far in 2025, but is still up about 9 % over the past year. Investment sentiment has been impacted by ongoing losses and an increase in valuation. C3 is weighing heavily on significant investments to expand the product profile and advertising costs. ai’s base line.

C3. On February 26, ai is expected to release its benefits for the fourth quarter of Governmental 2025. Experts expect the agency’s Q3 FY25 revenue to increase by 25 % year-over-year to$ 98.5 million. However, loss per share is expected to increase to$ 0.25 per share from$ 0.13 per share in the prior-year quarter as the company continues to make growth investments.

Is C3. ai Stock a Buy, Sell, or Hang?

So far this year, SOUN property has not received any researcher ratings. Researchers at KeyBanc and JPMorgan downgraded C3 in December 2024. ai property to be sold off. In specific, JPMorgan scientist Pinjalim Bora downgraded C3. ai property, citing its economic performance, inconsistent growth, and thin margins. The five-star researcher noted that while C3, There are problems over the higher costs that come with ai’s recent increase in revenue.

Ultimately, Wall Street is sidelined on C3. ai property, with a Hold compromise ranking based on four Holds, two Purchases, and four Sells. At$ 37.22, the average implies about 31 % upside potential.

Super Micro Computer ( NASDAQ: SMCI)

Super Micro Computer is regarded as a proponent of the continuous AI boom and offers application-optimized site options. The share of SMCI has been on a roller coaster. It has increased by about 73 % in the last month, but it is still down nearly 24 % over the last year. The recent decline in SMCI stock prices has been attributed to Hindenburg Research, growing competition, accounting problems, the processing of financial statements, and the risk of a blacklisting from the Nasdaq exchange.

Optimized with Nvidia’s ( NVDA ) GPUs ( graphic processing units ), SMCI’s servers are designed for AI, deep learning, and high-performance computing. The company’s change from Nvidia’s Grinder to Blackwell GPUs is anticipated to accelerate the growth in new technology platforms as supply increases in the current quarter and beyond, according to SMCI’s CEO and founder Charles Liang in the media release for the Q2 preliminary results.

Further, Liang is confident that SMCI will file its delayed annual report by the U. S. Securities and Exchange Commission’s ( SEC ) deadline of February 25 and expects the company to hit$ 40 billion in revenue in FY26. The CEO’s positive statements overshadowed the lower-than-expected primary Q2 numbers and poor full-year perspective.

Is SMCI Stock a Good Buy?

Super Micro Computer stock’s value target was raised from$ 32 to$ 36 on February 21 and reaffirmed its Hold rating. The scientist noted that the company’s primary Q2 EPS was below the guidance range, reflecting a decline in revenue and gross margins, primarily as a result of the company’s ongoing change from Hopper to Blackwell GPUs.

Ng noted that SMCI has raised$ 700 million in new funding and anticipates raising more to help the necessary working capital to meet its FY26$ 40 billion profit target. When parts become available, the company believes it has enough production capacity to support its top-line perspective.

Nevertheless, Wall Street has a Keep discussion standing on Super Micro Computer property based on three Buys, two Keeps, and two Sell ratings. The average of$ 37.17 implies about 34 % downside risk.

Known AI ( NASDAQ: SOUN)

SoundHound AI has emerged as a dominant player in the verbal AI space, with over 200 enterprise brands leveraging the company’s AI agents across several verticals like mechanical, restaurants, financial, healthcare, and economic services.

It is important to point out that SoundHound inventory gained popularity after it was revealed that transistor tycoon Nvidia purchased the business’s stock in Q4 2023. SOUN investment dropped 28 %, but, after an SEC filing recently revealed that Nvidia had sold its stake in the AI-powered words technology company.

Despite this unfortunate growth, SoundHound’s prospects look promising as the business continues to draw in more customers with its creative products both in existing and new ending markets. On February 27th, SoundHound is scheduled to release its Q4 2024 effects. Analysts expect the company to report a Q4 loss per share of$ 0.10 compared to a loss per share of$ 0.07 in the prior-year quarter. Wall Street expects fourth-quarter revenue of$ 33.73 million, reflecting a more than 97 % year-over-year growth.

Is SoundHound Stock a Value Purchase?

Following a meeting with the company’s management at the 2025 Consumer Electronics Show in Las Vegas, H. C. Wainwright scientist Scott Buck recently reiterated a Get standing on SOUN property with a price target of$ 26.

The researcher noted that administration demonstrated several AI product use cases in mechanical, restaurant, and contact management services. Buck highlighted SOUN’s message business ecosystem that allows SoundHound-enabled cars to interact directly with SoundHound-enabled restaurants. Buck sees several possible advertising options for the words commerce ecosystem, including a portion of ticket sales, a flat fee, or a customer-convenience fee. With about 10 million SoundHound-enabled cars on the road in North America, control believes that partnering with automobile manufacturers could create$ 500 million annually.

Buck believes income opportunities, like the voice commerce ecosystem, could generate substantial top-line growth and push Known stock higher.

Based on two Buys and a Keep advice, Wall Street has a Moderate Buy consensus rating for Known stock. The average of$ 18.67 implies 81.1 % upside potential. In the last year, SOUN stock has increased by over 173 %.

Conclusion

There are concerns about consistency in demand in the face of growing competition and whether Big Tech would continue to spend a lot of money on AI, despite the three companies mentioned above seeing higher business growth as a result of AI tailwinds. On C3, Wall Street is sidelined. Due to company-specific risks, ai and Super Micro Computer stocks, and is cautiously optimistic about SoundHound stock. Currently, analysts see higher upside potential in SoundHound stock.

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