<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>SoundHound AI and BigBear.ai have seen similar valuation drops in 2026. </li><li>While the stocks have posted similar performances recently, results for their respective businesses tell a different story. </li><li>10 stocks we like better than SoundHound AI ›</li></ul>SoundHound AI (NASDAQ: SOUN) and BigBear.ai (NYSE: BBAI) have both seen big valuation pullbacks this year as artificial intelligence (AI) stocks have broadly sold off. SoundHound AI is down roughly 35% so far in 2026, and BigBear.ai is down about 34%. Which of these formerly high-flying AI stocks looks like a better play as volatility roils the market?Despite the war with Iran and other factors creating demand catalysts for the defense industry, BigBear.ai has seen bearish stock performance. More importantly, the company's business results have been underwhelming.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MjE0Ni9nZXR0eWltYWdlcy0xNDgyMjQ2NTEwLWNvcHkuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MjE0Ni9nZXR0eWltYWdlcy0xNDgyMjQ2NTEwLWNvcHkuanBnJnc9NzAw"/>Image source: Getty Images. In 2025's fourth quarter, the company's sales fell 38% year over year to land at $27.3 million. While defense-tech companies, including Palantir Technologies, have seen soaring revenue connected to government contracts, BigBear has actually seen reduced spending from the U.S. Army and other key customers. Conversely, SoundHound AI has continued to post robust revenue growth. The company's revenue increased 59% year over year to reach $55.1 million last quarter. The company has also seen significant margin improvements, with its Q4 gross margin coming in at 47.9% -- up from 39.9% in the prior-year quarter. So while BigBear.ai and SoundHound AI have posted similar stock performance across this year's trading, recent business performance tells a very different story about the health of each underlying company. Valuations for AI stocks can be expected to be volatile in conjunction with macroeconomic and geopolitical shifts, but SoundHound AI's strong sales growth points to a more promising future for its stock.<h2>Should you buy stock in SoundHound AI right now?</h2> Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,592!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,076,767!* Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 24, 2026. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and SoundHound AI. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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SoundHound AI and BigBear.ai have both experienced significant valuation drops in 2026, with SoundHound down 35% and BigBear down 34%. Despite similar stock performances, their business results diverge. BigBear's sales fell 38% year-over-year to $27.3 million, while SoundHound's revenue grew 59% to $55.1 million, with improved margins. This indicates a more promising future for SoundHound AI amidst ongoing volatility in AI stock valuations.

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BigBear.ai vs. SoundHound AI: One Is Surviving the AI Sell-Off. The Other Isn't.