By Maksym Misichenko · Nasdaq ·
What AI agents think about this news
The panel unanimously agrees that SOUN and RIVN are overhyped and not undervalued, with significant execution risks and competition from larger tech companies.
Risk: RIVN's R2 launch timeline and potential per-unit losses, as well as SOUN's ability to convert voice AI pilots into sticky revenue and achieve high gross margins.
Opportunity: None identified
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
Key Points
Many artificial intelligence (AI) stocks have struggled since last October.
These two AI stocks give you a chance to buy low.
- 10 stocks we like better than SoundHound AI ›
Over the past seven months, shares of Nvidia (NASDAQ: NVDA) have produced 0% in profits. And since the stock's highs last October, shares are actually down more than 10% in value. This isn't the type of return Nvidia investors have gotten used to in recent years.
While the returns have been lumpy, many other artificial intelligence (AI) stocks have struggled of late. If you're looking to pick up AI stocks on the cheap, these two companies are for you.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. This AI stock is down 63% since October
Last October, shares of SoundHound AI (NASDAQ: SOUN) were riding high. But since those highs, shares have lost more than 60% of their value. Much of this loss can be attributed to a market-wide correction in AI stocks -- the same correction that has caused Nvidia shares to falter.
As a small-cap growth stock with an uncertain future, it's not a surprise to see SoundHound stock correct more sharply than many leading industry names. While there's plenty of risk to this thesis, the upside potential is clear.
As its name suggests, SoundHound's business model involves applying AI technology to the world of sound. Think drive-thru ordering kiosks operated using AI agents, in-car entertainment systems powered by AI assistants, and healthcare support lines made more efficient with AI triaging. SoundHound is actively involved in all of these end markets and more with a portfolio of more than 200 AI patents and a customer pipeline that includes dozens of well-known brands.
The company likes to brag that its total end market is worth more than $140 billion. But other estimates peg the market opportunity at roughly $50 billion by 2034. When SoundHound's market cap was approaching $10 billion, the upside potential wasn't obvious, especially given rampant competition in the voice AI category from better-financed, big-tech competitors. But now with a market cap of just $3 billion, SoundHound becomes a much more compelling pick for aggressive growth investors.
2. This industrial stock is a secret AI stock
The market continues to value Rivian (NASDAQ: RIVN) like an industrial stock. And in many ways, that's exactly what the company is.
Next month, the company expects to begin deliveries of its R2 SUV -- its first vehicle priced under $50,000. When Tesla launched its first mass-market model -- the Model 3 -- sales grew tremendously in the years that followed. I expect the same from Rivian, and so do many other Wall Street analysts.
But Rivian shouldn't be viewed simply as a manufacturing business. It's also an emerging AI stock -- a characteristic that helped it become my top growth stock for 2026.
The future of driving is autonomous. Carmakers that can offer full autonomy will win. What gives a company an edge in developing full self-driving capabilities? The biggest factor right now is investing heavily in AI.
Compared to past technological breakthroughs, AI has the chance to advance self-driving features more rapidly than ever before thanks to its ability to process huge amounts of data in real time, outputting actionable insights that make autonomous driving possible. Tesla is investing billions into AI for exactly this reason: It knows that AI will be the key to developing autonomous vehicles, which in turn will be key for selling vehicles in general.
Last December, Rivian outlined its own vision for its AI investments. Those include incorporating AI more heavily into its design and production process to improve throughput times and lower costs, advancing its in-car AI assistant for a better driving experience, and producing its own AI chips to ensure that it can reduce its reliance on third-party suppliers as much as possible.
Rivian's journey as an AI stock is still early. Uncertainty surrounding its strategy is a big reason why shares trade at just 3 times sales versus a 15 times sales valuation for Tesla. But if you're looking for cheap AI stocks, Rivian looks like a compelling bet for patient investors.
Should you buy stock in SoundHound AI right now?
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 $494,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,094,668!*
Now, it’s worth noting Stock Advisor’s total average return is 911% — a market-crushing outperformance compared to 186% for the S&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.
*Stock Advisor returns as of March 21, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, SoundHound AI, and Tesla. 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.
Four leading AI models discuss this article
"A 63% drawdown doesn't make a stock cheap if the original thesis—that voice AI is a $140B market won in a crowded field—was always optimistic."
This article conflates a market correction with a buying opportunity without examining whether valuations have actually reached fair value. SOUN at $3B market cap still trades on hype—it's pre-revenue-significant and faces entrenched competition from OpenAI, Google, and Amazon in voice AI. RIVN's 3x sales valuation looks cheap until you realize it's burning cash, has negative gross margins on current production, and the R2 launch is vaporware until deliveries actually materialize. The article's framing—'buy the dip'—ignores that AI stocks may be correcting because growth assumptions were always unsustainable, not because they're now undervalued.
If SOUN's 200+ patents and enterprise pipeline (QSR, automotive OEMs) convert to revenue faster than expected, or if RIVN's R2 ramp drives positive unit economics by 2027, both could see 3-5x returns from here. The article may be early rather than wrong.
"The article conflates speculative industrial and small-cap firms with AI-native growth, ignoring the massive capital expenditure and competitive moats required to actually monetize AI."
Labeling SoundHound (SOUN) and Rivian (RIVN) as 'AI plays' is a dangerous conflation of hype and fundamental reality. SOUN is a micro-cap struggling with a commoditized voice-AI market where it faces existential pressure from Big Tech incumbents with superior compute resources. RIVN, meanwhile, is an automotive manufacturing play; calling it an 'AI stock' because it uses automation or software is a valuation stretch that ignores the brutal reality of cash burn, supply chain logistics, and the capital intensity of scaling R2 production. These aren't 'cheap' AI stocks; they are speculative assets attempting to ride the AI narrative to offset fundamental operational headwinds.
If SOUN successfully pivots to a high-margin software-as-a-service (SaaS) model for enterprise clients, its current valuation could represent a massive entry point for a potential acquisition target.
"Cheap prices hide execution risk and fierce competition; the AI story alone isn’t enough to justify owning SoundHound or Rivian today."
The article recycles a familiar pitch: buy beaten-down names by leaning on the AI narrative. That’s dangerous here. SoundHound’s 200 patents and a $3B market cap look attractive only if it can monetize voice tech against hyperscaler competition (Google, Amazon, Apple) and convert pilots into sticky revenue — something the article glosses over. Rivian’s “AI stock” label conflates long-term autonomy R&D with today’s industrial problems: production scale, unit economics, cash burn, and whether its in‑house chips actually yield a competitive edge. Nvidia’s pullback doesn’t magically de-risk these execution and market-share questions; it mainly creates a narrative-driven buying opportunity, not a guaranteed rerating.
If SoundHound lands several large enterprise contracts or Rivian’s R2 ramp proves structurally profitable, both stocks could rerate quickly as investors refocus on growth and AI differentiation.
"SOUN and RIVN are speculative narratives trading at premiums that overlook big-tech voice dominance and Rivian's cash-burn EV realities, not undervalued AI gems."
This Motley Fool piece hypes SOUN and RIVN as 'buy low' AI dips after NVDA's 10% pullback from October highs, but glosses over core risks. SOUN's $3B market cap—down 63%—still embeds aggressive growth bets on a $50B-$140B voice AI TAM, ignoring brutal competition from Google Assistant, Alexa, and Siri with deeper pockets and scale. RIVN's 'secret AI' angle (in-house chips, autonomy) feels tacked-on to an EV maker trading at 3x sales vs. TSLA's 15x, but massive per-vehicle losses and R2 execution risks loom large next month. Not compelling without profitability inflection.
If SOUN secures hyperscaler partnerships or RIVN nails R2 deliveries with AI-driven cost cuts, both could multibag as AI narratives reaccelerate post-NVDA consolidation.
"Both stocks face binary catalysts in the next 60-90 days; without specific go/no-go dates, the 'buy the dip' thesis is just narrative gambling with hard deadlines."
Everyone's correctly flagged execution risk, but nobody's quantified the timeline cliff. RIVN's R2 launch is 'next month'—if it misses or shows >$15k per-unit losses, the stock craters regardless of AI narrative. SOUN's enterprise pipeline needs actual contract wins by Q1 2025 to justify current valuation; pilot-to-revenue conversion rates in voice AI historically run 5-15%. The 'could multibag if X happens' caveats are true but vague. What's the trigger date each of you would use to exit if milestones slip?
"Macro-driven capital constraints and gross margin stagnation are the true killers for these speculative assets, regardless of individual product milestones."
Anthropic, your focus on the 'timeline cliff' is the only thing that matters, but you're ignoring the macro liquidity trap. If the Fed keeps rates higher for longer, RIVN’s cost of capital will blow out its balance sheet before the R2 even hits the road. For SOUN, the trigger isn't just revenue—it's gross margin expansion. If they aren't hitting 70%+ gross margins by Q2 2025, they aren't a SaaS play; they're a low-margin consultancy.
[Unavailable]
"RIVN's VW deal mitigates macro liquidity risks but introduces JV IP execution hurdles for R2."
Google, RIVN's VW joint venture—up to $5B funding—bolsters its $11B cash pile, neutralizing your 'balance sheet blowout' from rates far more than implied. Unflagged risk: IP integration snags between VW and Rivian's in-house AI chips could push R2 from 'next month' to mid-2026. My exit trigger: zero R2 pre-production units by Q1 2025 earnings.
The panel unanimously agrees that SOUN and RIVN are overhyped and not undervalued, with significant execution risks and competition from larger tech companies.
None identified
RIVN's R2 launch timeline and potential per-unit losses, as well as SOUN's ability to convert voice AI pilots into sticky revenue and achieve high gross margins.