SoundHound AI (SOUN -2.78%) stock recorded huge gains across August’s trading and has kept rallying. The company’s share price rose 26% last month.

SoundHound’s big gains in August stemmed from a blockbuster earnings report. While the company’s valuation saw some pullbacks in post-earnings trading in response to concerns about valuations for artificial intelligence (AI) stocks, bullish momentum resumed as the month progressed.

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SoundHound AI soared on strong Q2 results

SoundHound AI published its second-quarter report after the market closed on Aug. 7, and the conversational AI specialist delivered results that crushed the market’s expectations. The company reported a non-GAAP (generally accepted accounting principles) adjusted loss of $0.03 per share on sales of $42.7 million in the period, beating the average Wall Street analyst estimate’s call for a per-share loss of $0.05 on sales of approximately $32.9 million.

SoundHound’s sales increased roughly 217% year over year in the second quarter. While the company’s adjusted gross margin fell to 58.4% from 66.5% in the prior-year period, the big sales beat in the quarter was more than enough to offset the margin decline when it came to shaping movement for the stock. Following the Q2 release, SoundHound AI received ratings upgrades and price-target increases from multiple analysts.

SoundHound AI did see some valuation pullbacks in post-earnings trading last month, but it reclaimed its big gains as the month progressed. Sell-offs in the period stemmed from a report from the Massachusetts Institute of Technology (MIT) stating that 95% of the businesses it studied had yet to achieve profitability on their generative AI integrations. Reports showing that inflation was coming in hotter than expected and could accelerate in the consumer side of the economy also played a role in pullbacks.

What’s next for SoundHound AI?

SoundHound AI stock has kept surging in September’s trading, with the stock now up 14.3% in the month so far. Bullish momentum for tech stocks, in conjunction with expectations that the Federal Reserve will cut interest rates later this month, has helped facilitate gains for the company’s share price.

On the heels of its strong Q2 results, SoundHound AI raised its full-year performance outlook. The company is now targeting annual revenue between $160 million and $178 million and said that it expects strong growth to continue following the second quarter. If the business were to hit the midpoint of management’s sales target, it would mean delivering annual growth of 99.5% compared to the $84.7 million in sales recorded last year. For comparison, the business recorded annual revenue growth of 85% in 2024.

SoundHound’s business is scaling rapidly, and the company has been managing to expand its sales footprint in a relatively cost-effective fashion. While the stock still looks like a high-risk play, trading at approximately 36.4 times this year’s expected sales, the company’s recent sales momentum suggests shares could still offer upside.

Space and defense stock Voyager Technologies (VOYG 12.60%) took off like a rocket packed with fuel on Monday. The company’s shares gained more than 13% in value after it divulged an investment into an artificial intelligence (AI) business. That trajectory was far more impressive than that of the bellwether S&P 500 index, which only cruised flat that trading session.

Time for an AI investment

Monday morning, Voyager announced that investment, which is being channeled into privately held company Latent AI. Voyager described Latent AI as a developer that “optimizes AI for contested and constrained environments, bringing faster, smarter and more resilient decision-making to the edge.”

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Although it’s obviously proud of this move, Voyager did not provide any specifics about the deal. It did not provide the amount it’s plowing into Latent AI nor what stake in the company it might now hold.

It did say that with the new funds coming in, Latent AI will have scope to accelerate development of its AI and to “broaden their hardware reach.” The goal is to put AI-ready processors in Voyager-built craft.

Nevertheless, Latent AI feels like it’ll be a good fit for Voyager, which aims to develop and build space stations. As the former company concentrates on AI that quickly produces output in high-pressure situations, its solutions might serve space missions very well.

Voyage into the unknown

Without details of the deal, it’s hard to make a fully educated guess as to how it’ll affect the fundamentals of Voyager, which has consistently posted net losses of late. I don’t feel it’ll be a make-or-break event for the company. However, if the partnership between the two businesses is fruitful, it could give Voyager quite the technological edge.

Shares of Netflix (NFLX 1.28%) charged sharply during the first six months of 2025, with shares surging 50%, according to data provided by S&P Global Market Intelligence. That runs circles around the roughly 5% gains of the S&P 500.

The catalyst that sent the streaming pioneer higher was impressive financial results that far outpaced expectations. Furthermore, the company unveiled ambitious plans for the future, fueling investors’ enthusiasm. As impressive as Netflix’s run has been, there could be more to come.

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Fallen out of favor

While artificial intelligence stocks (AI) have been all the rage over the past few years, Netflix has continued to focus on expanding its audience and improving its financial performance — and those efforts are bearing fruit. In the first quarter, the streaming leader generated revenue of $10.5 billion, up 13% year over year, resulting in earnings per share (EPS) of $6.61, an increase of 25%. This was fueled by Netflix’s expanding operating margin, which climbed to 31.7%, up 360 basis points compared to the prior-year quarter. These results came on the heels of 16% revenue growth and 102% EPS growth in Q4. In both quarters, results easily outpaced investor expectations.

However, it was the company’s plans for the future that helped fuel the stock’s blistering run. Reports emerged in April that Netflix has ambitious plans to join the $1 trillion club by 2030, according to a report in The Wall Street Journal. For context, at the time the story broke, Netflix had a market cap of roughly $396 million, so the story raised eyebrows.

To reach this lofty benchmark, executives at the streamer have outlined the following goals:

• Double total revenue from $39 billion in 2024 to roughly $78 billion by 2030.
• More than quadruple global ad sales from $2.15 billion to $9 billion.
• Triple operating income from $10 billion to $30 billion by 2030.
• Grow its global audience to 410 million subscribers, up from 302 million at the end of 2024.

Investors were excited by the extent of Netflix’s long-term goals. That, combined with the company’s impressive growth, lit a fire under the stock and helped fuel its impressive rise in the first half of the year.

Netflix is scheduled to report its Q2 results after the market close on July 17, and management expects the company’s robust growth to accelerate. Netflix is guiding for revenue of $11.04 billion or year-over-year growth of 15% and EPS of $7.03, and an increase of 44%. For context, analysts’ consensus estimates are calling for revenue of $11.04 billion and EPS of $7.06.

Netflix isn’t cheap, selling for 59 times earnings and 14 times sales. That said, given the company’s robust growth, expanding profit margins, and rapid earnings growth, I would argue that Netflix stock is still a buy.