The United States stock market has been on an extraordinary run, with the S&P 500 hitting an all-time high of 6,090.27 on December 6, 2024, after a 27.58% year-to-date surge.
Historical data suggests that the rally may continue into 2025, as rate cuts from the Federal Reserve in September 2024 have preceded positive market performance. Analysts are projecting further gains for the index, with targets as high as 7,100.
Amid this promising backdrop, Finbold turned to ChatGPT, OpenAI’s most advanced tool, to pinpoint two artificial intelligence (AI) stocks poised to outperform the S&P 500 in 2025.
SoundHound AI (NASDAQ: SOUN) stock
SoundHound AI (NASDAQ: SOUN) has emerged as one of the most dynamic players in the tech space, with its stock up an impressive 712% year-to-date, trading at $16.91 at the press time.
The company has successfully transitioned from an automotive voice recognition provider into a diversified leader, delivering solutions to businesses across automotive and IoT sectors, restaurants, as well as customer service industries, to name a few.
Revenue projections and partnerships
Wall Street projects SoundHound’s revenue to grow by 83% in 2024 and an even more impressive 96% in 2025, far exceeding the average growth rate of S&P 500 companies.
This growth is supported by the company’s ability to secure high-profile partnerships, including deals with seven of the top 20 quick-service restaurant chains globally.
In addition, SoundHound’s AI Smart Ordering service, recently launched across all 130 Torchy’s Tacos locations, demonstrates its ability to attract major clients.
Partnerships with Nvidia (NASDAQ: NVDA) and Stellantis (NYSE: STLA) highlight the company’s expansion strategy with its voice technology now integrated into vehicles across Europe and Japan, with a U.S. rollout expected soon.
Institutional backing signals long-term confidence
These developments are supported by strong institutional interest, particularly from BlackRock (NYSE: BLK),. According to an SC 13G/A form filed with the Securities and Exchange Commission (SEC), BlackRock owns 23,276,075 shares of SoundHound AI, Inc., representing a 7.1% stake in the company. Other major investors also increased their positions, reflecting confidence in the company’s growth potential.
While the stock’s valuation is a concern, trading at 41.33 times projected sales according to Stock Analysis, SoundHound’s strong fundamentals help to address these risks.
The company reported an 89% year-over-year revenue increase in Q3 2024, raising its full-year guidance to $82 to $85 million, with revenues expected to nearly double to $155 to $175 million in 2025.
With a $140 billion addressable market in conversational technology, SoundHound is positioned to outperform the S&P 500 in 2025.
Amazon (NASDAQ: AMZN) stock
From its roots as an online bookstore, Amazon (NASDAQ: AMZN) has evolved into a global e-commerce leader and the dominant player in cloud computing through Amazon Web Services (AWS).
At press time, Amazon’s stock is trading at $229.72, reflecting an impressive year-to-date gain of 53%, reflecting strong investor confidence in its diversified growth engines.
AWS continues to drive Amazon’s profitability, with a 19% year-over-year revenue increase in the latest quarter.
Partnerships and diversified growth engines
The cloud computing division is also spearheading Amazon’s entry into advanced artificial intelligence, with a slate of ambitious projects set to roll out in 2025.
Project Rainier, powered by Amazon’s Trainium chips, is expected to challenge Nvidia’s dominance in large-scale AI model training.
Meanwhile, Project Ceiba, developed in collaboration with Nvidia, will deploy over 20,000 Blackwell GPUs for advanced AI applications.
AWS is also introducing UltraServer, an AI-optimized cloud server designed to meet the growing demand for enterprise-level AI solutions.
These efforts are further reinforced by strategic partnerships, including Apple’s integration of Trainium chips into its AI technologies and Amazon’s $8 billion investment in Anthropic to refine AI infrastructure.
Combined with its growing advertising business, which saw Q3 2024 revenue rise 19% year-over-year to $14.3 billion, and the launch of “Haul,” a platform targeting budget-conscious shoppers, Amazon is solidifying its leadership across high-growth markets.
Despite a forward price-to-earnings ratio of 38.4, according to StockAnalysis, analysts remain bullish on Amazon, citing its diversified growth engines and high-margin revenue streams.
This robust growth trajectory, combined with strong fundamentals and strategic investments, positions Amazon to outperform the broader S&P 500 in 2025.
As artificial intelligence continues to transform industries, these two stocks are poised to reward investors who capitalize on their growth potential.
Featured image via Shutterstock
