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SoundHound vs. NVIDIA After Earnings: Which AI Stock to Buy Now?
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Key Takeaways
SoundHound's Q2 revenues rose 45% to $61.9M, while its full-year outlook increased to $230M-$260M.
SoundHound's GAAP gross profit jumped 68%, while its net loss narrowed to $42.8M from $74.7M.
NVIDIA's Data Center revenues surged 117%, with Q3 revenues projected at about $108B, plus or minus 2%.
SoundHound AI, Inc. (SOUN - Free Report) emphasizes voice and agentic artificial intelligence (AI), while NVIDIA Corporation (NVDA - Free Report) remains a major player in AI infrastructure. Both companies have benefited from strong AI demand, as reflected in their latest quarterly results. Let’s compare their latest results and growth prospects to determine which stock offers the stronger investment opportunity right away.
SOUN’s Growth Accelerates as Margins Improve and Losses Narrow
SoundHound reported exceptional second-quarter 2026 results, as highlighted in the company’s Aug. 5 press release. Revenues reached $61.9 million in the second quarter, up 45% year over year. Revenue growth remains a key positive, as second-quarter revenues were 10 times higher than the second-quarter 2022 levels when it debuted as a public company.
Management expects the revenue growth momentum to continue through the remainder of 2026, and raised its full-year revenue outlook to $230 million-$260 million. Revenue growth is expected to improve as demand for high-ROI voice and agentic AI solutions accelerates, supported by SoundHound’s OASYS platform and in-house AI models.
The company’s GAAP gross profit jumped 68% year over year in the second quarter, outpacing its 45% revenue growth and signaling improving profitability as the business scales. While SoundHound remains unprofitable, its losses are narrowing, with its GAAP net loss declining to $42.8 million from $74.7 million in the year-ago quarter.
NVDA’s AI Growth Accelerates on Strong Data Center Demand
NVIDIA’s Data Center business remains the primary growth driver, generating $89 billion in the fiscal second quarter of 2027, up 117% from a year ago and 18% sequentially, according to the company’s Aug. 26 press release. The company’s consolidated revenues reached $96.2 billion, up 106% year over year and 18% quarter over quarter.
Revenue growth momentum is expected to remain strong next quarter. Management projects revenues of around $108 billion, plus or minus 2%, for the fiscal third quarter of 2027, up 12% sequentially at the midpoint.
NVIDIA also delivered robust profitability alongside strong top-line growth. The company’s non-GAAP gross margin was 75% compared to 72.5% a year earlier, while high operating income indicated that NVIDIA was able to convert its revenue growth into higher earnings.
Meanwhile, the advanced Vera Rubin platform is in full production, positioning NVIDIA to benefit from the next wave of AI investment.
SoundHound or NVIDIA—Which AI Stock to Buy Post Earnings?
The latest earnings results have highlighted that both SoundHound and NVIDIA have benefited from strong AI-driven growth. SoundHound has demonstrated rapid revenue growth and improving financial performance, while NVIDIA delivered robust revenue growth and strong profitability.
However, SoundHound’s growth remains concentrated in the voice and agentic AI market, which is still smaller in scale, while its ongoing losses make it a high-risk investment. In contrast, NVIDIA has built a dominant position in the AI infrastructure market, supported by a deep-rooted ecosystem, varied revenue streams, and strong profitability.
All these factors make NVIDIA a more mature business, with a stronger financial foundation than SoundHound. Thus, NVIDIA is a more compelling buy right now. NVIDIA currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
View the Zacks #1 Rank List
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SoundHound vs. NVIDIA After Earnings: Which AI Stock to Buy Now?
Key Takeaways
SoundHound AI, Inc. (SOUN - Free Report) emphasizes voice and agentic artificial intelligence (AI), while NVIDIA Corporation (NVDA - Free Report) remains a major player in AI infrastructure. Both companies have benefited from strong AI demand, as reflected in their latest quarterly results. Let’s compare their latest results and growth prospects to determine which stock offers the stronger investment opportunity right away.
SOUN’s Growth Accelerates as Margins Improve and Losses Narrow
SoundHound reported exceptional second-quarter 2026 results, as highlighted in the company’s Aug. 5 press release. Revenues reached $61.9 million in the second quarter, up 45% year over year. Revenue growth remains a key positive, as second-quarter revenues were 10 times higher than the second-quarter 2022 levels when it debuted as a public company.
Management expects the revenue growth momentum to continue through the remainder of 2026, and raised its full-year revenue outlook to $230 million-$260 million. Revenue growth is expected to improve as demand for high-ROI voice and agentic AI solutions accelerates, supported by SoundHound’s OASYS platform and in-house AI models.
The company’s GAAP gross profit jumped 68% year over year in the second quarter, outpacing its 45% revenue growth and signaling improving profitability as the business scales. While SoundHound remains unprofitable, its losses are narrowing, with its GAAP net loss declining to $42.8 million from $74.7 million in the year-ago quarter.
NVDA’s AI Growth Accelerates on Strong Data Center Demand
NVIDIA’s Data Center business remains the primary growth driver, generating $89 billion in the fiscal second quarter of 2027, up 117% from a year ago and 18% sequentially, according to the company’s Aug. 26 press release. The company’s consolidated revenues reached $96.2 billion, up 106% year over year and 18% quarter over quarter.
Revenue growth momentum is expected to remain strong next quarter. Management projects revenues of around $108 billion, plus or minus 2%, for the fiscal third quarter of 2027, up 12% sequentially at the midpoint.
NVIDIA also delivered robust profitability alongside strong top-line growth. The company’s non-GAAP gross margin was 75% compared to 72.5% a year earlier, while high operating income indicated that NVIDIA was able to convert its revenue growth into higher earnings.
Meanwhile, the advanced Vera Rubin platform is in full production, positioning NVIDIA to benefit from the next wave of AI investment.
SoundHound or NVIDIA—Which AI Stock to Buy Post Earnings?
The latest earnings results have highlighted that both SoundHound and NVIDIA have benefited from strong AI-driven growth. SoundHound has demonstrated rapid revenue growth and improving financial performance, while NVIDIA delivered robust revenue growth and strong profitability.
However, SoundHound’s growth remains concentrated in the voice and agentic AI market, which is still smaller in scale, while its ongoing losses make it a high-risk investment. In contrast, NVIDIA has built a dominant position in the AI infrastructure market, supported by a deep-rooted ecosystem, varied revenue streams, and strong profitability.
All these factors make NVIDIA a more mature business, with a stronger financial foundation than SoundHound. Thus, NVIDIA is a more compelling buy right now. NVIDIA currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.