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Riding the AI Wave: 3 Stocks Primed for Long-Term Growth at Attractive Prices

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  Published in Stocks and Investing on Friday, August 22nd 2025 at 8:47 GMT by The Motley Fool
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Artificial intelligence is no longer a futuristic fantasy; it's reshaping industries and driving economic growth. While many AI stocks have seen explosive – and often unsustainable – price increases, savvy investors are looking for opportunities in companies that offer strong fundamentals alongside exposure to this transformative technology. These aren’t the meme stock darlings of yesteryear; these are established businesses poised to benefit from the continued advancement and adoption of AI, currently trading at prices that suggest significant long-term potential.

According to a recent analysis by The Motley Fool, three such stocks stand out: Palantir (PLTR), MongoDB (MDB), and SoundHound AI (SOUN). While each operates in a distinct niche within the broader AI landscape, they share common threads – innovative technology, strong growth prospects, and relatively attractive valuations compared to their peers.

Palantir: Data Powerhouse for Government and Enterprise

Palantir is perhaps the most recognizable name on this list, known primarily for its work with government agencies analyzing massive datasets. However, the company has increasingly focused on expanding its enterprise business, offering its AI-powered data analytics platform, Gotham, to commercial clients across various sectors including healthcare, financial services, and manufacturing.

What makes Palantir compelling isn't just its technology – which allows users to uncover hidden patterns and insights from complex data – but also the stickiness of its contracts. These are often long-term engagements with significant switching costs, providing a degree of revenue predictability that’s rare in the tech world. While Palantir has faced criticism regarding its profitability and reliance on government contracts, recent progress in enterprise adoption and improved operational efficiency suggest a path towards sustainable earnings growth. The company's ability to leverage AI to solve complex problems for both public and private sectors positions it well for continued success. Its current valuation reflects some of the risks associated with its business model, but also offers potential upside as the company continues to execute on its strategic goals.

MongoDB: The Database Fueling the AI Revolution

While not a pure-play AI stock in the same vein as Palantir or SoundHound, MongoDB is an essential infrastructure provider for many AI applications. As the leading developer of general-purpose database software, MongoDB’s platform provides the foundation upon which countless AI models are built and deployed. Its flexible document data model makes it particularly well-suited for handling the unstructured data that often fuels machine learning algorithms.

The company's growth is directly tied to the increasing demand for cloud-based databases and the proliferation of AI initiatives across industries. MongoDB’s Atlas platform, a fully managed cloud database service, has been a key driver of revenue growth, offering scalability and ease of use that appeal to developers building modern applications – many of which incorporate AI capabilities. While competition in the database market is fierce, MongoDB's strong customer retention rates and consistent innovation demonstrate its competitive advantage. The company’s valuation reflects its premium positioning within the cloud infrastructure space, but the long-term growth potential driven by the AI boom makes it an attractive investment for patient investors.

SoundHound AI: Conversational AI for a Voice-First Future

SoundHound AI represents a more speculative, yet potentially high-reward, opportunity in the AI landscape. The company specializes in developing voice artificial intelligence (VAI) technology, enabling devices and applications to understand and respond to natural language commands. Unlike many competitors that rely on cloud-based processing, SoundHound’s VAI can operate directly on edge devices – meaning faster response times, improved privacy, and reduced reliance on internet connectivity.

SoundHound's technology is being integrated into a wide range of products, from automotive infotainment systems to smart home appliances. The company has secured partnerships with major automakers and other industry leaders, demonstrating the growing demand for its VAI solutions. While SoundHound’s revenue base remains relatively small compared to Palantir or MongoDB, the potential market opportunity in voice-activated technology is enormous. The company's focus on edge computing differentiates it from competitors and positions it well for a future where voice interfaces become increasingly ubiquitous. However, investors should be aware that SoundHound faces significant competition and its success hinges on continued innovation and successful execution of its partnerships. The stock carries higher risk but also offers the potential for substantial returns if the company can capitalize on the growing demand for conversational AI. The Bottom Line: A Diversified Approach to AI Investing

These three stocks – Palantir, MongoDB, and SoundHound AI – represent a diverse range of opportunities within the rapidly evolving AI landscape. While each carries its own set of risks and challenges, they all share the potential to benefit from the continued growth of artificial intelligence. For investors seeking long-term exposure to this transformative technology at attractive valuations, these stocks warrant serious consideration. As with any investment, thorough due diligence and a diversified portfolio are essential for managing risk and maximizing returns. The AI revolution is underway, and these companies appear well-positioned to ride the wave.