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

MrDecoder · 2026-03-25T06:48:23+00:00

SoundHound AI and BigBear.ai have both experienced significant valuation declines in 2026 amid broader AI stock sell-offs. However, while BigBear.ai reported a 38% year-over-year sales drop, SoundHound AI saw a 59% revenue growth, indicating a healthier outlook for SoundHound despite market volatility.

MrDecoder

2026-03-25 06:48:23

Abstract generation in progress

SoundHound AI (SOUN 7.69%) and BigBear.ai (BBAI 3.40%) 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.

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.

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NASDAQ: SOUN

SoundHound AI

Today’s Change

(-7.69%) $-0.53

Current Price

$6.36

Key Data Points

Market Cap

$2.9B

Day’s Range

$6.36 - $6.81

52wk Range

$6.36 - $22.17

Volume

22M

Avg Vol

27M

Gross Margin

32.96%

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.

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