SoundHound uses AI to interpret human speech, applying its technology for commercial applications such as taking verbal orders from customers.
Astera Labs provides hardware products that are the nuts and bolts for powering AI systems.
10 stocks we like better than SoundHound AI ›
The rise of artificial intelligence (AI) has unleashed a tidal wave of related businesses to consider investing in. Among these are SoundHound AI(NASDAQ: SOUN) and Astera Labs(NASDAQ: ALAB).
The former delivers voice-enabled AI that companies can make use of in customer interactions, such as taking orders at restaurant drive-thrus. The latter acts behind the scenes, providing components used in data centers.
Both are seeing strong sales growth thanks to the demand for AI-related technologies. But which looks likely to be the better long-term investment?
Image source: Getty Images.
Buying SoundHound shares means accepting plenty of volatility, given its beta of nearly 3. For example, last December, the stock skyrocketed to a 52-week high of $24.98, but fell back to earth in 2025, hitting a 52-week low of $6.52 on April 7 after President Donald Trump’s tariff policies caused the stock market to crash.
SoundHound’s share price resurgence occurred in October after investment bank H.C. Wainwright raised its price target on the stock to $26. The average target among Wall Street analysts is now $16.94.
This wild ride illustrates how AI’s popularity among investors has impacted the stock, as well as the fact that the company has both strengths and shortcomings.
For instance, the AI voice expert has achieved a number of notable wins this year. In October, it announced an expanded agreement with French insurance provider Apivia Courtage, a deal that came about thanks to the impressive results delivered by SoundHound’s agentic AI. In the third quarter, SoundHound’s sales soared to record revenue of $42 million, a 68% year-over-year increase.
However, the company made a number of acquisitions that, while turbocharging sales, dramatically boosted its costs. Consequently, it booked a net loss of $109.3 million in the third quarter, an increase of more than 400% from its loss of $21.8 million in the prior-year period. That substantial sum, against revenue of $42 million, is concerning, although the company indicated it is working to reduce expenses.
Astera Labs’ share price moves were more favorable for shareholders. The stock went from a 52-week low of $47.13 during the April crash to a high of $262.90 on Sept. 18.
Shares surged in September in the wake of Wall Street analyst upgrades, such as Deutsche Bank setting a price target of $200. But Astera’s strong business performance justified those analyst moves.
The company generated record third-quarter revenue of $230.6 million, an impressive 104% year-over-year increase. This helped Astera achieve quarterly net income of $91.1 million, a vast improvement over its net loss of $7.6 million in the prior-year period.
That success was driven by demand for its data center components, which enable AI systems to operate with greater speed and efficiency. To further strengthen its offerings, the company is acquiring aiXscale Photonics, a German specialist in optical-glass coupling technology. That will give Astera the ability to provide the high-bandwidth, low-power solutions needed by customers as AI tech infrastructure expands to data centers the size of small cities.
Both SoundHound and Astera Labs have benefited from the AI megatrend. But while both companies delivered revenue increases in the third quarter, looking out over a longer time frame provides an important insight for comparing them: Astera has experienced the stronger sales growth over time.
Data by YCharts. TTM = trailing 12 months.
Adding to this is the fact that Astera is profitable. SoundHound is not: In the third quarter, it booked an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $14.5 million. However, management believes it can reach profitability on an adjusted EBITDA basis in the near future.
In terms of valuation, both companies are at about the same level when viewed through the lens of their price-to-sales ratios. This metric measures how much investors are willing to pay for every dollar of revenue produced over the trailing 12 months, and is commonly used to gauge the values of companies that are unprofitable, such as SoundHound.
Data by YCharts.
SoundHound’s valuation soared early in 2025, and that contributed to its share price drop as the year progressed. Now, its valuation is more reasonable.
However, considering Astera has about the same sales multiple, yet is a profitable business with stronger revenue growth over time, it is the superior AI stock to invest in today.
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Robert Izquierdo has positions in SoundHound AI. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.
Better Artificial Intelligence Stock: SoundHound AI vs. Astera Labs was originally published by The Motley Fool
Sergey Brin gave away more than $1.1 billion worth of Alphabet Inc. stock this week, with most of the money going to a nonprofit the Google co-founder created.
The donation was disclosed Friday in a regulatory filing, which didn’t specify who had received the more than 3.5 million shares. According to a spokesperson for Brin’s family office, roughly $1 billion in stock is going to Catalyst4, which the billionaire started in 2021 with the dual purpose of supporting research into central nervous system diseases and climate-change solutions.
Brin is also giving about $90 million to his family foundation, the spokesperson said, as well as $45 million to the Michael J. Fox Foundation, which supports research into Parkinson’s disease. In May, Brin had previously doled out Alphabet shares worth $700 million to the same three charities.
Brin, 52, is the world’s fourth richest person, with a $255.5 billion fortune, according to the Bloomberg Billionaires Index. His net worth has soared this year thanks to a rally in Alphabet shares, which hit a high of $323 on Tuesday boosted by company’s artificial intelligence gains. Brin owns a roughly 6% aggregate stake of the business and has seen his fortune gain $97.3 billion this year so far.
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The consensus analyst price target for Infosys has increased slightly from ₹1,706 to ₹1,719, which signals a shift in sentiment among market watchers. This uptick comes as analysts weigh a mix of robust client demand and cautious optimism about the company’s potential for steady growth. Stay tuned to discover how you can keep track of ongoing shifts in the Infosys stock narrative going forward.
Analyst Price Targets don’t always capture the full story. Head over to our Company Report to find new ways to value Infosys.
Analyst commentary continues to shape the outlook on Infosys, with perspectives split between cautious optimism and calls for vigilance on valuation and competitive pressures. Here is a breakdown of the latest sentiment from the Street:
🐂 Bullish Takeaways
Recent analyst price targets reflect supportive sentiment. An upward revision indicates a degree of renewed confidence around client demand and delivery execution.
The increased consensus target highlights analyst belief in steady growth momentum and a positive assessment of Infosys’s operational execution.
While few specifics were provided, the trend of modest price target hikes suggests analysts are rewarding the company’s focus on cost control and steady performance in a competitive market.
🐻 Bearish Takeaways
Some analysts remain cautious, referencing reservations about near-term risks to growth and whether recent valuation increases have already priced in much of the upside.
Concerns around broader sector pressures and conservative forecasting continue to temper expectations for outperformance.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NSEI:INFY Community Fair Values as at Nov 2025
US President Trump is planning to introduce a $100,000 fee for H-1B visa applications. This policy could significantly impact Infosys’s ability to deploy talent in the US and may shift dynamics across the broader technology outsourcing sector.
Infosys has unveiled a new AI Agent designed for the energy sector. Leveraging generative AI, cloud infrastructure, and Microsoft Copilot, the solution is expected to enhance operational efficiency and workplace safety for clients in this field.
The company has launched Infosys Topaz Fabric, a comprehensive AI-led platform for data and IT service delivery. The aim is to accelerate digital transformation for enterprises and provide enhanced support for evolving technology needs.
Infosys has entered a strategic partnership with Metro Bank and Workday to overhaul and centralize Metro Bank’s finance operations, utilizing cloud-native platforms and advanced Workday solutions.
Consensus Analyst Price Target has risen slightly from ₹1,706 to ₹1,719, reflecting updated valuation estimates.
Discount Rate has increased marginally from 15.88% to 15.99%.
Revenue Growth projection has declined modestly, moving from 5.55% to 5.45%.
Net Profit Margin is up slightly from 16.55% to 16.57%.
Future P/E multiple has edged higher from 32.45x to 32.59x.
Narratives are a smarter, story-driven way to make sense of investing. They connect the numbers, such as fair value and future forecasts, to the real story behind a company and make it easy for everyone to understand. On Simply Wall St’s Community page, millions of investors use Narratives to track how a company’s fair value changes compared to its price. Narratives update automatically when new news or data is released, helping you stay informed.
Read the original Infosys Narrative for the full story, and follow along to discover:
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include INFY.nsei.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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