IonQ vs. SoundHound AI: Which Technology Stock Is a Better Buy for 2027?

Emerging technology sectors offer high growth potential but often carry significant risks for early investors. Let's explore whether IonQ (NYSE:IONQ) or SoundHound AI (NASDAQ:SOUN) is the better long-term choice for your portfolio.

IonQ is a leader in quantum computing, a field that uses subatomic physics to perform calculations beyond the reach of traditional computers. SoundHound AI specializes in conversational voice technology for various consumer and commercial applications. Both companies are in their early expansion phases and represent different ways to play the broader artificial intelligence (AI) trend.

The case for IonQ

IonQ specializes in trapped-ion quantum computing, selling hardware access and networking solutions to a variety of commercial and government clients. Its technology is available through major cloud platforms like Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and the marketplace for Alphabet. Customer concentration like this adds a layer of risk to the business. The company also operates within the broader semiconductor stocks category by developing specialized hardware for quantum sensing and positioning applications.

In FY 2025, revenue reached nearly $130 million, representing a significant increase of approximately 201.9% compared to the previous year. Despite this rapid growth, the company reported a net loss of close to $510.4 million for the period. The company is still spending heavily to develop its technology and scale its workforce.

The case for SoundHound AI

SoundHound AI provides conversational voice software that powers digital assistants in cars, restaurants, and consumer devices. The company expanded its reach in the technology sector by acquiring LivePerson in 2026. This move helps the firm offer a more comprehensive platform for customer service and automated voice interactions. Its strategy focuses on building long-term partnerships with original equipment manufacturers and hospitality brands to secure recurring revenue streams.

In FY 2025, revenue reached close to $168.9 million, which is an increase of approximately 99.4% over the prior year. The company reported a net loss of nearly $14 million for the fiscal period. Its net margin improved significantly year over year, reaching roughly negative 8.3%, suggesting the business is moving closer toward breaking even more than some of its peers in the emerging tech space.

Risk profile comparison

IonQ faces significant risks as an early-stage company with a history of operating losses and no track record of large-scale commercial production. Key risks include intense global competition from well established technology companies and the unproven nature of its business model. The company also faces potential delays in technical roadmaps and high revenue concentration among a small number of customers.

SoundHound AI is subject to risks related to its substantial operating losses and negative cash flows as it continues to scale its operations. The company has identified material weaknesses in its internal control over financial reporting, which could impact the accuracy of its financial disclosures. It faces competition from massive technology firms and relies on a few key customers and original equipment manufacturing partners. Integration challenges following acquisitions such as LivePerson and Amelia also create operational and legal risks as the company deploys generative AI solutions.

Valuation comparison

SoundHound AI offers a lower price-to-sales (P/S) ratio, which measures market value against sales over the past twelve months, compared to the much higher premium assigned to IonQ.

Which stock would I buy for 2027?

This is a tough battle because you have two high-growth stocks that are part of two massive investing trends: quantum computing and AI. For quantum computing, IonQ is considered one of the few pure-play options out there, and if you're going to own any quantum stock, it's high on the list of options to consider. Ultimately, I can see both fitting into a portfolio as small, speculative positions. But if just one stock is going to be picked between the two, I would go with SoundHound.

The simple reason is that quantum computing is still just in its very early stages. According to Fortune Business Insights, the global quantum computing market was valued at $1.3 billion in 2025 and is expected to climb to $17.8 billion by 2034. There's solid growth there, but it's just not as large as the AI industry. In comparison, according to Statista, the global AI market is forecast to reach $1.9 trillion by 2032.

SoundHound also has an advantage in that it currently offers more mainstream use cases for its technology, with clients like Five Guys and Panda Express, financial services companies, automakers, and more. We'll soon see more updates on how the company has recently fared, as it is expected to report earnings on Nov. 5. Still, even if those results aren't favorable, between the two, for the foreseeable future, I would rather own SoundHound because the quantum market may take longer to develop and have less market value than AI for some time.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, IonQ, Microsoft, and SoundHound AI. The Motley Fool has a disclosure policy.