Key insights
- The article highlights SoundHound AI and AppLovin as promising tech stocks with significant growth potential. SoundHound, specializing in voice-first AI, is nearing profitability. AppLovin, an adtech platform, demonstrates strong revenue growth and margin expansion. While these stocks are not market movers, positive developments in AI and adtech sectors can contribute to overall market sentiment.
Two of the fastest-growing companies in tech fly under the radar and have recently seen big sell-offs in their stocks. However, both are seeing rapid revenue growth and have continued big opportunities in front of them.
These aren't household names, but these two artificial intelligence (AI) stocks have the potential for big gains in the future.
SoundHound AI (SOUN +11.28%) popped up on investors' watchlists after Nvidia revealed a position in the stock a couple years ago. However, after the chip giant dumped its shares for a big gain a year later, SoundHound has been flying under the radar ever since.
Perhaps the most ironic thing is that SoundHound is a much better-positioned company today than when Nvidia took a position in the stock. It has been seeing rapid growth, with its revenue nearly doubling in 2025, while it's also nearing adjusted EBITDA profitability.
Meanwhile, SoundHound is also a much different company today following its acquisition of Amelia. This purchase gave SoundHound the ingredients it needed to create a voice-first agentic AI platform. By combining its AI voice technology with Amelia's virtual agents, it now has an AI platform designed to help handle customer service across a variety of industries. That's a big market opportunity, and with the stock down nearly 40% this year, this could be a good time to scoop up shares.
While it can be argued that AppLovin (APP +5.52%) has one of the worst company names out there, it's hard to argue with its operational performance over the past several years. After developing its Axon-2 adtech platform, the company has seen tremendous growth.
Impressively, not only has its revenue soared, but its gross margins have expanded and it has lowered its sales and marketing (S&M) spending. This could be seen last quarter, when its revenue jumped 66%, its gross margins rose 420 basis points to 88.9%, and it reduced its S&M expenses by 21%.
The company expects continued strong growth with its core mobile gaming customers, just from industry growth and its AI algorithm constantly improving. Meanwhile, the introduction of a self-serve ad manager should bring in more small and medium-sized advertising customers, while it's also set to open its platform to international advertisers. Finally, the company is looking to expand beyond the mobile gaming market and into other areas like e-commerce, which has the potential to be a huge growth driver if successful.
With the stock down more than 40% this year despite AppLovin's continued strong growth, now could be a great time to add this under-the-radar stock to your portfolio.