NVDA vs. BBAI vs. SOUN: Which AI Stock Is the Best Pick, According to Analysts?

Business Insider

07-07-2025

Wall Street is bullish on the prospects of several artificial intelligence (AI) stocks as spending remains resilient despite macro uncertainties. The use of generative AI to automate tasks and enhance productivity is increasing rapidly, presenting massive growth opportunities for companies in the AI space. Using TipRanks' Stock Comparison Tool, we placed Nvidia (NVDA), BigBear.ai Holdings (BBAI), and SoundHound AI (SOUN) against each other to find the best AI stock, according to Wall Street analysts.
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Nvidia (NASDAQ:NVDA) Stock
Nvidia stock has risen about 19% year-to-date, marking a rebound from the weakness seen earlier this year due to tariff pressures, macro uncertainty, growing competition, and chip export restrictions. The company reported market-beating results for the first quarter of Fiscal 2025, reflecting robust demand for its GPUs (graphics processing units), which are essential for building and training AI models.
Looking ahead, Nvidia is confident about capturing elevated demand for its AI chips, supported by innovative offerings like the Blackwell platform. Moreover, the company is well-positioned to capture growth opportunities in sovereign AI and robotics.
Is Nvidia Stock a Buy?
Recently, Mizuho analyst Vijay Rakesh increased the price target for Nvidia stock to $185 from $170 and maintained a Buy rating. The 5-star analyst's revised price forecast for NVDA stock reflects an increase in his Fiscal 2026 revenue and EPS (earnings per share) estimates from $195 billion and $4.16 to $202 billion and $4.38, respectively. Rakesh also increased his top and bottom-line estimates for Fiscal 2027 and Fiscal 2028, citing slightly improved GPU supply and pulled-in demand for GB300 and air-cooled Rubin platform as key drivers.
While Rakesh increased his Fiscal 2025 estimates, he maintained his revenue and EPS forecast for Q2 FY25 at $45 billion and $0.98, respectively, with data center revenue expected to rise 5% quarter-over-quarter to $41 billion. He expects strong demand for GB200 chips in the second half of 2025, ahead of the GB300 ramp, which could potentially more than offset the loss of revenue from H20 chips.
Overall, Wall Street has a Strong Buy consensus rating on Nvidia stock, backed by 35 Buys, four Holds, and one Sell recommendation. At $175.69, the average Nvidia stock price target indicates 10.3% upside potential.
BigBear.ai Holdings (NYSE:BBAI) Stock
BigBear.ai stock has rallied by an impressive 74.2% year-to-date and 424% over the past year, as investors are optimistic about the growth potential of the company's AI-powered decision intelligence solutions. The Russell 2000 AI stock has been gaining the attention of small-cap investors.
While BigBear.ai's 5% revenue growth in Q1 2025 was not impressive, BBAI bulls are optimistic about better days ahead, driven by a strong backlog of $385 million and recent contract wins. For instance, last month, the company announced a strategic partnership with Easy Lease and Vigilix Technology to accelerate AI in the United Arab Emirates (UAE).
Is BBAI Stock a Good Buy?
Earlier this month, H.C. Wainwright analyst Scott Buck increased the price target for BigBear.ai stock to $9 from $6 and reaffirmed a Buy rating. The analyst noted the outperformance of BBAI stock compared to the Russell 2000 Index in the first half of the year, driven by new customers and contracts as well as underlying secular trends in the AI-driven defense and security space.
Buck highlighted the double-digit revenue growth expectations for 2026, bolstered by a strong backlog and favorable signs indicating that BBAI's products are gaining traction in key growth verticals like border security, defense, intelligence, and critical infrastructure. Consequently, Buck sees the possibility of multiple expansion for BBAI stock ahead of the expected improvement in the financial results in the second half of 2025 and 2026.
Currently, Wall Street is divided on BBAI stock, with a Moderate Buy consensus rating based on two Buys and two Hold recommendations. The average BigBear.ai stock price target of $5.83 indicates about 25% possible downside from current levels.
SoundHound AI (NASDAQ:SOUN) Stock
SoundHound AI offers artificial intelligence-powered voice and conversational intelligence solutions to several end markets, including retail, automotive, healthcare, and restaurants. After rallying more than 800% in 2024, SOUN stock is down 44% year-to-date.
The company delivered a 151% growth in its Q1 2025 revenue. Moreover, it ended the quarter with cash and cash equivalents of $246 million and no debt. However, profitability concerns, rising competition in the voice AI space, SoundHound stock's lofty valuation, and Nvidia's sale of its stake in the company have adversely impacted investor sentiment.
Is SoundHound Stock a Good Buy?
In a research note last month, Northland Securities analyst Michael Latimore highlighted SoundHound's position as a pioneer in speech recognition and language understanding. The 4-star analyst also highlighted the gains from the Amelia acquisition and the strength of the proprietary SoundHound Voice AI platform, which offers robust speed and accuracy in understanding complex voice queries. Latimore noted Agentic AI opportunities and management's expectation of material acceleration in the second half of 2025. That said, Latimore currently has a Hold rating on SOUN stock with a price target of $8, which indicates a 28% downside risk.
While the prospects of SoundHound AI look bright, considering a total addressable market (TAM) of $140 billion across multiple industries, analysts are divided on the stock due to its steep valuation and other concerns. With four Buys and three Holds, Wall Street has a Moderate Buy consensus rating on SoundHound AI stock. The average SOUN stock price forecast of $11.50 indicates a modest upside of 3.7%.
Conclusion
Wall Street is cautiously optimistic about BigBear.ai Holdings and SoundHound AI stocks, but highly bullish on Nvidia stock as a top AI play. Analysts see higher upside potential in NVDA stock than in the other two AI stocks from current levels. Nvidia's dominant position in the AI GPU space, solid fundamentals, and relentless innovation support analysts' bullish stance.