SoundHound (SOUN) vs. Palantir (PLTR): Which AI Stock Should You Buy Ahead of Q1 Earnings?

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Both companies are portion of the AI boom, but they run differently. Palantir focuses connected information platforms and authorities clients, portion SoundHound is focused connected dependable AI and fast-growing user and endeavor applications. Year-to-date, PLTR banal is down astir 20%, portion SOUN has fallen 22%.

Let’s excavation deeper.

Wall Street expects Palantir to study Q1 2026 net per stock (EPS) of $0.28, up from $0.13 a twelvemonth ago. At the aforesaid time, gross is projected to emergence implicit 70% to $1.54 billion.

The institution is heading into Q1 net with precocious expectations aft a beardown Q4 2025. Investors are focused connected whether Palantir tin support its accelerated AI-driven maturation successful the U.S. commercialized segment. The cardinal question is whether gross volition support accelerating oregon commencement to slow.

On Wall Street, analysts are divided. Bulls constituent to Palantir’s beardown AI momentum and increasing request successful the U.S. commercialized conception arsenic cardinal drivers of aboriginal growth. Bears, however, stay cautious astir the stock’s precocious valuation and question whether this gait of maturation tin beryllium sustained.

Recently, DA Davidson’s four-star-rated expert Gil Luria reiterated his Hold standing connected PLTR. He called it “the champion communicative successful software,” but flagged valuation arsenic the cardinal concern. He sees Palantir arsenic a captious enabler of AI, helping companies safely deploy AI tools crossed their operations alternatively than competing with players similar OpenAI. While this beardown positioning supports semipermanent growth, Luria believes overmuch of that upside is already priced into the stock.

Before this, Mizuho expert Gregg Moskowitz lowered his terms people connected PLTR to $185 from $195 but maintained a Buy rating. He updated his outlook up of Q1 earnings, noting that unreality request and AI adoption stay strong.