SOUN and PLTR Post-Q1: Valuation Clash in AI Stocks

Both SoundHound AI (SOUN) and Palantir Technologies (PLTR) beat Q1 2026 earnings but the stocks slid on valuation concerns; SOUN posted $44.2 million in revenue and a 6-cent loss while reaffirming 2026 guidance and is rated Strong Buy with roughly 45% upside, whereas PLTR delivered $0.33 EPS on $1.63 billion revenue (up 85% YoY) but trades near 100x forward earnings with a Moderate Buy and ~36% upside; Palantir’s larger scale and government/enterprise contracts provide stability, while SoundHound’s smaller, unprofitable profile implies higher risk and less visibility on margins. The bottom line: valuation and profitability trajectories are the key forks for investors deciding which AI stock to own.