NEW YORK — Investors are displaying increasing enthusiasm for artificial intelligence (AI) stocks as spending remains strong despite ongoing economic uncertainties. Interest in generative AI technologies, which enhance productivity and automate tasks, presents significant growth prospects for companies in this sector. Analysts have analyzed Nvidia, BigBear.ai Holdings, and SoundHound AI to determine which of these stocks holds the most promise.
Nvidia shares have surged nearly 19% this year, recovering from previous struggles related to global tariffs, export restrictions, and competitive pressures. The company recently reported results for the first quarter of its 2025 fiscal year that exceeded analyst expectations, largely due to impressive demand for its graphics processing units (GPUs), critical for developing AI applications.
Looking forward, Nvidia anticipates capitalizing on robust demand for its AI-focused chips, bolstered by upcoming innovations like the Blackwell platform. Additionally, the firm aims to tap into growth opportunities within sovereign AI and robotics sectors.
Mizuho analyst Vijay Rakesh has raised Nvidia’s price target from $170 to $185, maintaining a Buy rating. His increased forecast for revenue and earnings per share reflects heightened expectations for fiscal years 2026 and 2027, primarily driven by improving GPU supplies and heightened demand for its new platforms. Rakesh predicts continued strong demand for Nvidia’s chips in the latter half of 2025, suggesting potential growth despite anticipated revenue losses from its older H20 chips.
Wall Street analysts overwhelmingly favor Nvidia, which boasts a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell recommendation. The average price target of $175.69 suggests a potential upside of more than 10%.
In contrast, BigBear.ai Holdings has seen shares climb 74.2% year-to-date and an impressive 424% over the past year, fueled by investor optimism around its AI-driven decision intelligence solutions. The firm’s revenue grew a modest 5% in the first quarter of 2025, but investors remain hopeful due to a strong backlog exceeding $385 million and recent contract acquisitions, including a strategic partnership aimed at enhancing AI capabilities in the United Arab Emirates.
Following this momentum, H.C. Wainwright analyst Scott Buck has increased BigBear.ai’s price target from $6 to $9, reaffirming a Buy rating. He notes the stock’s strong performance relative to the Russell 2000 Index and anticipates double-digit revenue growth by 2026 as the company secures new customers and contracts.
Meanwhile, SoundHound AI’s stock presents a more mixed picture. While it achieved remarkable 151% revenue growth in its latest financial report and ended the quarter with $246 million in cash, shares have declined 44% this year following a staggering rise of over 800% in 2024. Investors have expressed concerns over rising competition, profitability challenges, and a high valuation, particularly in light of Nvidia selling its stake in the company.
Northland Securities analyst Michael Latimore highlighted SoundHound’s pioneering role in speech recognition technology but maintained a Hold rating with a price target of $8, suggesting a risk of near-term declines. Despite a considerable total addressable market of $140 billion across diverse sectors, concerns over valuation continue to weigh on sentiment.
Overall, Wall Street analysts are cautiously optimistic about BigBear.ai and SoundHound AI, but strongly favor Nvidia as the premier investment in AI technology. With its leading position in the GPU market and solid financial health, Nvidia stands out as the preferred choice among analysts.