Not Palantir. Not SoundHound AI. This Software Specialist Could Be the Biggest Winner of the AI Productivity Boom
Twilio stock has outperformed Palantir and SoundHound AI this year, and I won't be surprised to see the trend continue.
The artificial intelligence (AI) software market is experiencing explosive growth, with Gartner projecting a 60% surge in spending this year to reach $453 billion. This upward trend is expected to continue, with the industry forecasted to see an impressive 41% increase next year, reaching over $638 billion. This remarkable growth is fueled by businesses incorporating AI-focused software tools into their operations, which are enhancing productivity.
A Morgan Stanley research report highlighted earlier this year that companies utilizing AI for at least a year have witnessed an 11.5% rise in productivity. It's no wonder that enterprise AI software providers like Palantir Technologies and SoundHound AI have been enjoying robust revenue growth. However, despite the booming sector, both companies' stocks have been underwhelming this year.
Palantir's stock has declined by 3% in 2026, while SoundHound AI has plummeted by 29%. On the brighter side, cloud communications specialist Twilio (NYSE:TWLO) has seen impressive gains of 57% in 2026, primarily due to the rising demand for its AI tools.
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