SoundHound AI (NASDAQ: SOUN) stock jumped 7% in early morning trade Thursday amidst the fervor surrounding generative AI (GenAI).
Shares of SoundHound AI (SOUN) commenced trading at $7.29 each, marking a rise from its earlier price of under $6 on March 12. This surge has propelled the company’s market capitalization beyond $2.8 billion.
This marks the third significant increase for SoundHound in just a month, following its jump from $4 to $7 in February.
The anticipation of further gains looms as SoundHound gears up for a presentation at the Nvidia (NASDAQ: NVDA) GPU Technology Conference scheduled for March 18. Nvidia, valued at over $2.2 trillion, ranked as the third most valuable company globally, trailing only Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL).
SoundHound initially focused on providing voice recognition solutions to automotive manufacturers, has expanded its scope to include artificial intelligence (AI) applications tailored for restaurants and call centers. Nvidia has made investments in the company.
According to Rick Orford, a contributor at InvestorPlace, SOUN stock remains undervalued. He asserts that SoundHound’s Only Voice AI platform holds broad utility across marketing and text-to-speech transcription realms.
Voice services have emerged as a burgeoning AI niche. However, SoundHound faces competition from Cloud Czars and open-source voice replication tech. Concerns among artists are mounting, fearing that the new software could replicate their voices, potentially resulting in fraudulent activities.
So far, SoundHound has been actively working to navigate around these challenges. Their primary focus lies in integrating database computing with voice recognition. Instead of replicating specific voices, the goal is to comprehend the voice at the other end.
Voice applications that connect telephony to databases represent low-hanging fruit in the AI revolution. SoundHound needs to showcase additional innovations next week to maintain the momentum and excitement.
SoundHound AI (NASDAQ: SOUN) Stock Reaction
SOUN stock jumped 24.82% to close at $8.65 on Wednesday. The traders had exchanged hands with 150,549,012 (150.54 million) shares compared to the average daily trading volume of 42.31 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
