From a valuation standpoint, GitLab is the much cheaper stock, trading at a price-to-sales (P/S) multiple of 9.9 times 2025 analyst estimates versus over 23.5 times for SoundHound. It is also worth remembering that GitLab's gross margins are much higher than SoundHound's.

The company's share price was up 11% as of 11 a.m. ET and had been up as much as 14.9% earlier in the daily session. Meanwhile, the S&P 500 index was up 1.6% and the Nasdaq Composite index was up 2.1%.

Two hot stocks in this sector are Palantir Technologies (NASDAQ: PLTR) and SoundHound AI (NASDAQ: SOUN). Palantir's shares had surged by more than 300% over the prior 12 months, while SoundHound had skyrocketed by 600%.

SoundHound AI ( SOUN -8.38%) stock was one of the market's biggest winners in 2024. The company's share price skyrocketed 835.8% across last year's trading, according to data from S&P Global Market Intelligence.