The Low-Down on the Nvidia Investment
SoundHound AI’s journey on the stock market has been akin to a turbulent roller coaster ride for investors. The initial fervor surrounding its debut with a special purpose acquisition company (SPAC) in early 2022 led to a soaring stock value, only for it to plummet in the subsequent months. Despite the dizzying highs and terrifying lows, the stock has witnessed an astonishing 286% increase this year. But the real kicker lies in the Nvidia investment, which, though significant, was not the sole catalyst behind its recent surge.
Securing Big-Name Customers
SoundHound AI’s forte lies in voice recognition software, with a keen focus on the restaurant and automotive sectors. Recent collaborations have been triumphant, evident in its partnership with White Castle for quick voice-enabled drive-thru menu boards, boasting order processing under 60 seconds. Furthermore, alliances with Jersey Mike’s Subs and the integration of Iris in Stellantis vehicles across Europe forebode a promising future for the company.
A Steadily Growing Backlog
The recently unveiled fourth-quarter results of SoundHound revealed an 80% surge in revenue, accompanied by a halving of the loss per share. Most notably, the backlog ballooned to a staggering $661 million, signifying a promising trajectory for the company. With revenue projections for 2024 and 2025 showcasing significant growth, SoundHound seems to be amassing a sturdy foundation for future success.
Is it Time to Invest in SoundHound AI?
While SoundHound AI’s recent triumphs paint a rosy picture, investors are advised to tread cautiously due to its monumental gains over the past year. With a valuation soaring 25 times above next year’s projected sales, the stock might not be for the faint of heart. However, a calculated risk for a small portion of a diversified portfolio could yield fruitful outcomes in the long run.
