Prediction: While Big Tech Grabs Headlines, These Small AI Stocks Could Outperform

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Geoffrey Seiler, The Motley FoolTue, October 7, 2025 at 3:53 PM GMT+2 5 min readMegacap tech stocks are not the only way to play the boom in artificial intelligence.SoundHound's voice-first approach to AI agents could be the catalyst for huge upside.GitLab's shift to a hybrid seat-plus-usage pricing model could be a big growth driver.10 stocks we like better than SoundHound AI ›Megacap technology companies have dominated the conversation when it comes to artificial intelligence (AI), and for good reason. These companies are both spending big and profiting nicely as the technology advances.However, megacap stocks are not the only way to play the trend in AI. Let's look at two smaller stocks that have a good opportunity to outperform their larger peers in the coming years.Image source: Getty Images.SoundHound AI (NASDAQ: SOUN) is tackling AI much differently than most megacap AI companies. The company has built a speech-to-meaning and deep-meaning understanding platform that can figure out what a user's intent is before they finish speaking, which is much more akin to how people process speech.That might not sound like a big deal, but as AI moves beyond simple generative AI chatbots to autonomous agents that plan and act, real-time understanding of intent is a major advantage. While there are a lot of companies chasing AI agents, SoundHound's focus on voice-first interaction is what sets it apart.SoundHound's acquisition of Amelia last year helped change its path from a company that at the time had made most of its inroads in the automobile and restaurant industries. Amelia brought with it virtual agents that served complicated, highly regulated sectors like healthcare and finance that needed to understand industry jargon and compliance rules.It then combined Amelia's conversational intelligence with its own speech-to-meaning technology, to create Amelia 7.0, which behaves more like a digital employee than a virtual assistant. Instead of just answering questions, it can integrate with ERP and CRM systems to handle transactions and customer service interactions end to end.The company is migrating 15 of its largest enterprise clients to Amelia 7.0, and it recently bought another company, Interactions, to help orchestrate its AI agents across different systems. It's also added AI vision technology to its platform.SoundHound was already seeing huge revenue growth before its AI agent push, but this shows a company that is able to quickly pivot to where the market is headed. Last quarter, its revenue skyrocketed 217% year over year to $42.7 million, and management expects it to reach adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) profitability by the end of 2025, which would be an important milestone.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,801.50 +0.25 (+0.00%)Dow Futures46,892.00 +25.00 (+0.05%)Nasdaq Futures25,337.25 +6.25 (+0.02%)Russell 2000 Futures2,499.90 +0.40 (+0.02%)VIX16.30 -0.94 (-5.45%)Gold4,045.40 -25.10 (-0.62%)PortfolioSign in to access your portfolioSign inTop gainersDGNX Diginex Limited 30.99 +6.79 (+28.06%)NTLA Intellia Therapeutics, Inc. 24.47 +4.03 (+19.72%)APGE Apogee Therapeutics, Inc. 47.24 +7.51 (+18.90%)FIG Figma, Inc. 71.08 +10.24 (+16.83%)RXRX Recursion Pharmaceuticals, Inc. 6.09 +0.86 (+16.44%)Top losersFICO Fair Isaac Corporation 1,695.01 -184.54 (-9.82%)OPEN Opendoor Technologies Inc. 8.49 -0.80 (-8.61%)JOBY Joby Aviation, Inc. 17.37 -1.54 (-8.14%)JEF Jefferies Financial Group Inc. 54.44 -4.66 (-7.88%)AAP Advance Auto Parts, Inc. 52.59 -4.25 (-7.48%)Most activeOPEN Opendoor Technologies Inc. 8.49 -0.80 (-8.61%)BULL Webull Corporation 12.66 -0.14 (-1.09%)RGTI Rigetti Computing, Inc. 43.23 -0.67 (-1.51%)AMD Advanced Micro Devices, Inc. 235.56 +24.05 (+11.37%)PLUG Plug Power Inc. 3.6550 -0.2150 (-5.56%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersAMD Advanced Micro Devices, Inc. 235.56 +24.05 (+11.37%)COST Costco Wholesale Corporation 914.80 0.00 (0.00%)CIFR Cipher Mining Inc. 17.60 +1.85 (+11.75%)TEM Tempus AI, Inc. 103.25 +10.24 (+11.01%)RXRX Recursion Pharmaceuticals, Inc. 6.09 +0.86 (+16.44%)Top economic events