Particle.news
Download on the App Store

SoundHound vs. TSMC: Q3 Gains Revive Debate Over the Cheaper AI Play

A fresh comparison casts SoundHound as a relatively cheaper way to tap accelerating AI data-center investment.

Overview

  • SoundHound reported third-quarter revenue of $42 million, up 68% year over year and above roughly $40 million expected.
  • The company raised its 2025 revenue outlook to $165 million to $180 million and narrowed its adjusted loss to $0.03 per share.
  • TSMC posted third-quarter revenue of $33.1 billion, a 30% increase, with earnings of $2.92 per ADR, up 39%.
  • CEO C. C. Wei said AI demand is "very strong" and stronger than management anticipated three months earlier.
  • Over the past year, SoundHound shares gained about 87% and TSMC rose about 44% as investors leaned into AI data-center spending that some projections place near $4 trillion by 2030.