SoundHound AI’s Meteoric Rise: How This Voice AI Leader Is Changing the Game SoundHound AI, a leading innovator in voice AI technology, has been making waves in the stock market, with its share price soaring dramatically in recent weeks. From groundbreaking partnerships to stellar earnings, let’s unpack what’s driving this meteoric rise and what it means for investors.
A Month of Unstoppable Growth SoundHound’s stock has skyrocketed by nearly 100% over the past month, powered by exciting developments in its technology deployment and financial performance. On Wednesday, shares rose 10.4%, and on Thursday, they surged another 31.3%, closing at $13.33. This places the stock near its all-time high of $18.14, achieved in May 2022.
Big Wins with Amelia and Kia The journey began with SoundHound’s deployment of its conversational AI agent, Amelia, at France’s Apivia Courtage. This AI agent managed over 100,000 customer calls in 2024, cutting human-managed inquiries by 20% and freeing up employees for higher-value tasks. Shortly after, the company announced a partnership with Kia, integrating its voice AI into vehicles in India. Supporting Hindi and planning to add 10 regional languages, SoundHound is expanding into high-demand, localized markets, showcasing its versatility and global reach.
A “Damn Good” Partnership with Torchy’s Tacos Adding to its momentum, SoundHound revealed a new deal with Torchy’s Tacos, a cult-favorite taco chain. SoundHound’s Smart Ordering system will streamline the ordering process across all 130 Torchy’s locations, ensuring seamless customer experiences. This isn’t the company’s first foray into the restaurant industry—it already counts Chipotle, Jersey Mike’s, Panda Express, and White Castle among its partners. With AI enhancing operations, SoundHound is becoming a go-to solution for restaurant chains looking to modernize.
Strong Financial Performance SoundHound’s Q3 results set the stage for its rally: Revenue Growth: Up 89% year-over-year to $25.1 million, surpassing expectations of $23.02 million. Future Outlook: 2024 revenue projections raised to $82-$85 million, with 2025 estimates at $155-$175 million. This financial strength underscores the company’s rapid growth and positions it as a leader in the booming voice AI industry.
Nvidia’s Strategic Stake SoundHound’s partnership with Nvidia has also fueled investor enthusiasm. Nvidia’s investment underscores confidence in SoundHound’s potential, with CEO Keyvan Mohajer emphasizing the transformative power of voice AI across products and services.
Technical Stock Analysis SoundHound’s stock is on fire, boasting a perfect IBD Relative Strength Rating of 99, placing it in the top 1% of all stocks over the past 12 months. Here are the technical highlights: Overperformance: Shares are 117% above their 50-day moving average and 153% above the 200-day line. Risks: While the rally is impressive, buying at current levels may be risky due to how extended the stock has become. Investor Strategy Experts recommend caution. Here’s why: Profit-Taking: Investors might consider taking partial profits at current highs or setting stop-loss levels to lock in gains. New Entry Points: Savvy investors should wait for a pullback or a new bullish pattern, such as a high-tight flag, to establish positions.
The Road Ahead With SoundHound set to participate in investor conferences this month, more updates on its growth strategy are expected. Combined with its strong momentum in voice AI adoption, partnerships, and financial performance, the company remains a compelling player in the AI space. For now, investors are watching closely as SoundHound continues to redefine the possibilities of voice AI.
