2 AI Stocks Primed for a Parabolic Surge in 2025

The AI gold rush is far from over—these two stocks are loading up rocket fuel.

While Wall Street analysts debate P/E ratios, disruptive AI plays are rewriting the rulebook. Forget 'overvalued'—the real question is which companies have the tech to justify the hype.

Here's what the smart money's watching:

The Dark Horse Architect

One under-the-radar chip designer just locked exclusive IP for neural net acceleration. When Q3 production ramps, shorts will scramble.

The Data Oracle

This SaaS play turned its customer pipeline into a training dataset. Now enterprise clients pay premium for AI insights extracted from their own metrics—poetic justice for the 'data is oil' crowd.

Will they moon? The algos don't lie—unlike most investment bankers' price targets. Just remember: what goes parabolic eventually comes down. Enjoy the ride.

Image source: Getting Images.

1. SoundHound AI

(SOUN -4.89%) creates voice AI products that companies can use to interact with customers. It offers products for a range of industries, including AI agents for hospitality companies, in-vehicle voice AI platforms for automakers, and healthcare AI agents that can take calls and handle administrative tasks. SoundHound has also made a push into restaurants, and about 13,000 locations use its voice AI ordering solutions.

Revenue was up by 151% year over year to $29 million in the first quarter of 2025, demonstrating the growing demand for its products. However, the company has been operating at a loss that widened from $89 million in 2023 to $351 million in 2024. That's not out of the ordinary for a young tech company, but it's one of the risks of investing. SoundHound stock is also on the expensive side, currently trading at a price-to-sales (P/S) ratio of 42.

But SoundHound has the potential to take a sizable share of the voice AI agents market, which is estimated to grow by nearly 35% per year to $47.5 billion by 2034. Since SoundHound has been focusing specifically on voice AI for decades, it has developed proprietary voice technology that excels in conversational ability and natural language understanding.

After a fantastic 2024 that saw its share price grow by 836%, SoundHound is down 40% on the year. But it could be poised for a rebound. At the end of last year, management mentioned that it had a backlog of $1.2 billion in cumulative subscriptions and bookings -- a substantial amount that looks even more impressive when you compare it to the company's revenue of $85 million last year. It's also partnered with quite a few big-name brands, including Nvidia and. SoundHound is risky, but if it keeps increasing its revenue and expanding its market share, the sky is the limit.

2. Applied Digital

With a market cap of $2.5 billion (as of July 25),(APLD -4.63%) is a smaller AI company, but it fulfills a crucial role. It designs, develops, and operates data centers, giving tech companies the facilities to deploy AI applications.

Revenue has been growing for Applied Digital. It made $52.9 million in its fiscal third quarter of 2025 (ending Feb. 28), up 22% year over year. Unfortunately, it has also consistently been losing money. Its net losses in that quarter were $35.6 million.

But Applied Digital is making some important changes to its operating structure. On April 10, the board approved a plan to sell its cloud services business, which turned in a loss of $10.3 million in Q3. Its aim is to transition to a data center real estate investment trust (REIT).

Applied Digital is building its network of data centers and plans to have a facility in Ellendale, North Dakota, open in Q4 2025. That facility will be able to scale up to a power capacity of 1 gigawatt over time. Last month, Applied Digital andagreed to two lease agreements of approximately 15 years at the Ellendale facility, deals that are expected to produce about $7 billion in revenue.

CEO Wes Cummins has also talked about plans to build additional data centers that can reach 1 gigawatt. Although Applied Digital needs to take on massive upfront costs for its data centers, it should be well positioned to meet the power and infrastructure demands of large clients.