If you’re looking for the next two tech winners, stocks with triple-digit upside potential that may be unlocked in 2025, look no further than SoundHound NASDAQ:SOUN and AppLovin NASDAQ:APP. Today, these companies are monetizing AI, establishing industry-leading technology and improving their prospects for long-term growth in ways that analysts are noticing. The business trends are enough to drive their stock prices higher over time; Analysts’ trends and technical chart patterns suggest that the value could be unlocked in 2025.

SoundHound Gains Relevance: Hyper Growth Accelerates Through Business Profits

SoundHound AI today

$21.22 +0.98 (+4.84%)

(As of 9:52 a.m. ET)

52 week range

$1.62

▼

$24.08

Price target

$12.07

SoundHound’s stock price skyrocketed in 2024 and will likely continue to rise in 2025 as hypergrowth accelerates and the consensus forecast reported by MarketBeat is likely to be low. Outperformance is expected. Recent results include another customer win, important for increasing sales and validating business, paving the way for further customer wins in 2025.

Confirmation is important because McDonald’s is a potential customer. McDonald’s has scrapped its first attempt at AI-powered calling services and is reportedly exploring SoundHound, now used in over 10,000 restaurant locations, for its more than 40,000 locations. Other restaurant chains could follow suit, and the way SoundHound technology works makes it well-suited to a variety of industries. Unlike most speech recognition systems that convert sound to text to meaning, SoundHound technology improves accuracy and saves time by going directly from sound to meaning.

Analysts’ trends are giving SoundHound shares a strong tailwind. The consensus price target of $12 significantly underperforms the market but does not reflect the strength of the tailwinds. The Q3 2024 earnings report prompted analysts at Wedbush and HC Wainwright to more than double their price targets and raise the consensus by nearly 100% in less than a week, suggesting a price point in the mid-$20s. The two targets average $24, or 20%, above current price action at the end of December, and the revision trend is expected to continue in 2025.

Seller interest is another strong tailwind for this market. In 2024, institutions are buying this stock at twice the rate of sellers, increasing their ownership to over 20%. 20% isn’t a lot of institutional interest, but it’s growing, and with enough shares available, the tailwind it provides could last for many quarters to come. Technically, the rise to new highs in December is very bullish for this market and suggests that a rise into the $30 area is likely.

The AppLovin pullback is a buying opportunity not to be missed

AppLovin today

$344.41 +2.58 (+0.75%)

(As of 9:46 a.m. ET)

52 week range

$37.40

▼

$417.64

P/E ratio

104.37

Price target

$310.71

AppLovin’s stock price fell sharply in early December when the company was rejected for inclusion in the S&P 500. However, the company’s business has pushed its share price to its all-time high, and its inclusion in the S&P 500 could make a subsequent pullback an attractive buying opportunity. Results in 2024 include growth in the 30% range, outperformance and entry into the e-commerce industry, with revenue growth expected to continue over the next few years. E-commerce is a good fit for AppLovin’s platform, which uses machine learning to serve ads to targeted markets.

Analysts’ reaction to the news is as optimistic as the reaction to SoundHound. Revisions since the release of the Q3 report have increased the consensus price target by almost 50%, taking the market to a new all-time high. At the high end, this stock is trading at around $450, about 35% above where it was at the end of December, with corrections expected to continue rising throughout 2025. From the buzz, AppLovin will be one of the better growth stocks in 2025 as its core business remains strong and e-commerce gradually contributes to it.

One of the crucial details from the price chart is the trading volume. This stock’s volume has been steadily increasing for years and has reached new highs in 2024. This suggests increasing ownership, conviction and liquidity supporting the uptrend. The uptick in volume is partly due to institutional activity, which rises along with the share price as institutions buy on dips. Another trend that is expected to continue in 2025.

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