Prediction: 1 stock that is more valuable than Soundhound AI for one year from one year to a year

Soundhound AI (NASDAQ: SOUN) Stocks witnessed riding a roller coaster in the stock market last year. After it appeared, it rose significantly nvidia Before witnessing the volatility period of 2024, there was a small stake in the company, and then ended throughout the year with great memo.
But the new year was not kind to the soundhound investor. The stocks of the company, famous for providing voice artificial intelligence (AI) solutions to corporate customers, have been reduced by 51% at the time of writing this article in 2025. NVIDIA’s SOUNDHOUND Investment sales are the reasons why this stock has been ruined until this year, along with the expensive evaluation of the stock price.
Although SoundHound is likely to continue to grow with great opportunities in the long run, the fact that 41 sales are trading at 41 expensive sales continues to be weighted in the short term. Therefore, it is not surprising to see SOUNDHOUUND falling stocks next year, which can be sent to less than $ 4 billion at the current level.
However, there are another company that trades at a much more attractive level compared to SoundHound AI and at the same time provided impressive growth. Let’s take a closer look at the company and see why it is likely to overtake its market cap next year.
Healthy demand for cloud -based AI services is provided Digitalocean Boost
Digitalocean‘S (DOCN -0.57%)) The $ 3.7 billion market cap means that as far as the market cap is concerned, it is close to the sound hound. The rapid growth demand for a customized cloud computing infrastructure for companies used by developers, new companies, and small businesses is why it can be better than the sound hound next year with attractive evaluation.
More specifically, Digitalocean is currently trading with five times sales and 22x revenue. It is not easy to buy this stock in this assessment because the AI -centric cloud computing solution that the company has begun to help is to take up the greater part of the customer wallet. This is clear from the company’s latest branch results.
In the fourth quarter of 2024, Digitalocean sales increased to $ 250 million, up 13% year -on -year, while imports increased 11% per share to $ 0.49. Last quarterly profit growth rate may be due to Digitalocean investments in the Graphics Processing Unit (GPU) to meet the strong demand for cloud -based AI services.
The company allows customers to access powerful GPUs such as NVIDIA’s H100 through the GPU droplet service. This allows the client to borrow an infrastructure at the time of order to run LLM (Lange Language Model) and build, scale and distribute the AI applications. Digitalocean started this service in October 2024, and the demand was so strong that “I quickly lacked capacity after launch.”
Digitalocean’s sound demand for cloud -based AI tools is one of the reasons why ARPUs increased 14% year -on -year in the fourth quarter, accelerating 6% growth in the same quarter last year. This metrics can continue to be improved because Digitalocean enhances the platform by adding new AI -centered services.
In January of this year, the company started the Digitalocean Genai platform, a solution that helps customers quickly build AI agents, build distributions and sites, deploy distributions, and sites with the help of popular LLM such as Anthropic and Mistral AI. This platform is currently in the open beta test stage. Digitalocean points out that more than 1,000 AI agents have already used this platform in the test stage to generate about 90%by existing customers.
This agency AI platform allows Digitalocean to provide another opportunity to occupy a larger part of the customer wallet through cross sales. According to Grand View Research, the AI agent market is expected to record 46%annual growth rate by the end of 10 years, which can help to attract new customers.
Why Digitalocean can overtake the market cap of SoundHound
Investors should pay attention to the fact that Digitalocean has informed $ 880 million in sales, up 13% from last year in the middle of the guidelines. However, the demand for cloud -based AI services currently provided can be better than that. As a result, the market can compensate for this with higher sales volume.
Depending on the average price -to -US sales ratio in the US technology sector, Digitalocean transactions are up to 7.5 times in sales and record sales of $ 880 million. It will be enough to overtake the market cap of Soundhound AI.
Harsh Chauhan has no position in the stock mentioned. The MOTLEY FOOL is located and recommends Digitalocean and NVIDIA. The MOTLEY FOOL has a public policy.