The AI Investing Pulse

October 16th, 2025

In this Week’s Edition:

1. Analysis - 3 AI stocks defying the market pullback

2. Stock Ideas - VRT vs. APH: which AI infrastructure stock is the smarter buy

3. News - What keeps the AI bubble from bursting and what it means for investors

4. Startups - Father of Siri launches AI and quantum tech startup

5. Trends - The future of AI has already been decided

6. Other News - Why 95% of enterprise AI projects fail

7. Videos - Fundstrat’s Tom Lee on last Friday’s sell-off

3 AI Stocks Defying the Market Pullback

Global markets stumbled this week as investors reacted to renewed U.S.–China tensions and growing unease over stretched AI valuations. Yet while the broader tech sector faced pressure, a handful of AI names stood out for their exceptional strength and price momentum.

While the overall AI universe (AIIP Index) delivered only a marginal +1.10% return in the week prior, three standout companies, Veritone, BigBear.ai, and SoundHound AI, surged well ahead of the pack. Their gains highlight how, even in periods of consolidation, select AI leaders continue to capture capital and attention through exceptional Relative Strength (RS) and decisive market performance.

In this week’s article, we break down what drove each of these Momentum Stocks and how they fit within their respective AI Stack layers.

1. Veritone, Inc. $VERI ( ▲ 17.21% )  

Sector / Industry: Technology / AI Software
AI Stack Layer: AI Development & Model Training
Market Cap: $588M
Fundamental Score: 32 / 100
Relative Strength (RS): 87 / 100
Ranking Status: 📈 Momentum

🧠 What the Company Does
Veritone operates within the AI Development & Model Training layer. It delivers application software and solutions tailored for diverse sectors, specialising in AI for media and government. Its focus is on developing and deploying AI tools that streamline data processing and model training, positioning it as a niche specialist within the broader AI ecosystem.

💡 Why It Stands Out
Veritone delivered the single largest weekly price total return across the entire AI universe, surging by a remarkable +59.8%. This explosive performance demonstrated extreme short-term market interest, strongly defying the prevailing sell-off mood. However, investors should note that the company recently forecast wider quarterly losses, suggesting that profitability remains a near-term challenge despite the price surge. This divergence between strong market momentum and softening fundamentals reinforces Veritone’s profile as a pure momentum-driven name within the current AI cycle.

2. SoundHound AI, Inc. $SOUN ( ▼ 2.6% )  

Sector / Industry: Technology / Software – Application
AI Stack Layer: Application & Edge
Market Cap: $8.7B
Fundamental: 52 / 100
Relative Strength (RS): 96 / 100
Ranking Status: 📈 Momentum

🧠 What the Company Does
SoundHound AI develops voice recognition and conversational AI technologies. Operating within the Application & Edge layer, the company enables natural language interactions for consumer products, vehicles, and enterprise applications. Its AI systems act as the interface between humans and machines, translating voice commands into intelligent actions — making SoundHound a key innovator in speech-driven user experiences.

💡 Why It Stands Out
SoundHound AI delivered a robust +15.2% weekly return, supported by a high RS score of 96. Its strong performance is driven by exceptional growth metrics: quarterly revenue increased 217% year-on-year, with a 94.9% revenue growth forecast ahead. The stock has also surged approximately 300% over the past year, underscoring accelerating investor confidence in the commercial scalability of voice-AI applications.

3. BigBear.ai Holdings, Inc. $BBAI ( ▼ 4.3% )

Sector / Industry: Technology / Information Technology Services
AI Stack Layer: AI Development & Training, Application & Edge
Market Cap: $3.1B
Fundamental: 26 / 100
Relative Strength (RS): 99 / 100
Ranking Status: 📈 Momentum

🧠 What the Company Does
BigBear.ai provides AI-powered digital transformation services across both the AI Development & Training and Application & Edge layers. The company’s platform supports Decision Intelligence, enabling clients in national security and commercial sectors to convert complex data into real-time insights for mission-critical operations. Its core strength lies in combining advanced analytics with deployable AI models that function even in low-connectivity or contested environments.

💡 Why It Stands Out
BigBear.ai posted a strong +13.8% weekly price return, ranking among the top performers, and achieved a near-perfect RS score of 99. Its surge followed a strategic partnership announced on October 13, 2025, with Tsecond, Inc., aimed at delivering AI-enabled edge infrastructure for defence and intelligence applications. This alliance enhances BigBear.ai’s positioning in the U.S. defence AI ecosystem, aligning with the Department of Defense’s shift toward decentralised AI capabilities.

🔍 Final Take

The performance of Veritone, BigBear.ai, and SoundHound AI highlights a key dynamic in the current AI market: sensational price action can unfold even amid sector-wide selling pressure. Each of these Momentum Candidates displayed exceptional Relative Strength, reflecting demand for high-volatility, high-growth AI names.

While their Fundamental Scores remain below the threshold, their short-term market leadership signals that investor enthusiasm for disruptive AI stories remains alive and well, particularly when backed by credible commercial traction and real-world partnerships.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

^{About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80}

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TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

VRT vs. APH: which AI infrastructure stock is the smarter buy now – MSN

The best AI ETFs and how to start investing – NerdWallet

Oracle vs. Microsoft – The Motley Fool

AI STOCKS & ETFs NEWS

What keeps the AI bubble from bursting — and what it means for investors – TradingView
Market dynamics sustaining today’s AI rally, with implications for positioning, risk, and time horizons.

Bank of America updates Nvidia outlook amid AI bubble fears – The Street
BofA lifts Nvidia’s target from $220 to $235, citing OpenAI tailwinds and multi-year revenue potential despite bubble concerns.

Broadcom and OpenAI strike multi-billion AI accelerator deal – MarketMinute
A custom AI accelerator partnership set to reshape the semiconductor landscape and buoy chip stocks on surging specialised AI demand.

Markets are walking a tightrope: how investors can find their footing – Morningstar
Elevated valuations and mixed macro signals call for balance between AI-led growth and defensives amid inflation and slowing fundamentals.

AI investment boom may lead to a bust, but not a systemic crisis – MSN
The IMF flags correction risks reminiscent of dot-com, while low leverage in AI funding tempers systemic-risk fears.

AI STARTUPS

Father of Siri launches AI and quantum tech startup – Tech.eu
Christopher Savoie’s SiC Systems blends agentic AI with quantum sensing for better decision-making in biomanufacturing and defence, raising over €2 million to scale.

AI startups choose Oracle Cloud for faster, cost-efficient computing – Investing.com
Founders cite low-latency networking and favourable economics on Oracle Cloud Infrastructure to train and deploy AI models at scale.

AI TRENDS

The future of AI has already been decided – Medium
A succinct take on jobs, ethics, and the arc of generative AI — and what these shifts mean for productivity and society.

OTHER

Why 95% of enterprise AI projects fail: the pattern we’re not breaking (part 2) – Fair Observer
MIT-cited findings show most enterprise AI initiatives miss value due to workflow misalignment and talent gaps; winners focus on clear pain points and the right partners.

5 ways AI agents can help business owners be more productive – CNBC
How AI agents automate tasks, sharpen decisions, streamline operations, and boost marketing so leaders can focus on strategy.

VIDEOS

Fundstrat’s Tom Lee on Friday’s sell-off – YouTube
A quick debrief on the market drop, tech leadership, and positioning into next week.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}