2 Breakout Growth Stocks You Can Buy and Hold for the Next Decade

Harsh Chauhan, The Motley Fool

Wed, Apr 16, 2025, 6:00 AM 6 min read

The stock market has been in turmoil so far this year amid the tariff-related issues that threaten to send the U.S. economy into a potential recession, and a big drop in consumer sentiment this month has added to the overall negativity.

According to the University of Michigan's latest survey, consumer sentiment dropped a remarkable 11% in April 2025 to its second-lowest level since 1952. The Trump administration's tariffs on global trade partners and the economic conflict with China could lead to higher inflation as manufacturing costs rise.

As such, it won't be surprising to see stocks remaining under pressure until there is a concrete resolution to the ongoing economic developments. However, this also seems like a good time for savvy investors to add some top growth stocks to their portfolios that could deliver solid returns in the long run. After all, the secular growth opportunities in areas such as cybersecurity and artificial intelligence (AI) should help companies operating in these sectors enjoy solid growth going forward.

We will take a closer look at two names that have been growing at impressive rates and have big growth opportunities ahead, making them worth buying and holding on to for the next decade.

Shares of SoundHound AI (NASDAQ: SOUN) plunged 58% in 2025 as of this writing, giving investors an opportunity to buy a rapidly growing company at a relatively cheaper valuation. Of course, SoundHound isn't exactly dirt-cheap right now as it is trading at 32.5 times sales, but that's well below its price-to-sales ratio of 90 at the end of 2024.

Moreover, SoundHound is in a position to justify its premium sales multiple because of its accelerating growth. After finishing 2024 with an 85% increase in revenue, SoundHound is expecting its top line to nearly double this year. This impressive growth in the company's revenue can be attributed to the fast-growing demand for the company's voice AI solutions, which are finding traction in multiple industries ranging from automotive to restaurants to healthcare to retail to financial services, among others.

The good part is that the voice AI market that SoundHound serves is forecast to grow at a solid annual rate of 24% through the next decade, generating a whopping $136 billion in annual revenue in 2035. So, SoundHound is at the beginning of a terrific growth curve, considering that it expects to generate $167 million in revenue this year at the midpoint of its guidance range.

The impressive thing to note here is that SoundHound's potential revenue pipeline is already strong enough to help it maintain impressive growth levels for a long time to come. The company ended 2024 with a cumulative subscriptions and bookings backlog of $1.2 billion. This metric, which SoundHound calculates based on the contracts that it has signed, is an indicator of the company's revenue generation potential over the long run. What's worth noting is that this metric shot up an impressive 75% year over year last quarter.