From Nasdaq: 2024-03-31 11:41:00

Shares of SoundHound AI have spiked following Nvidia’s investment of $3.7 million for a 0.6% stake. SoundHound specializes in voice AI, particularly in automobiles and restaurants, leading to a 47% revenue growth in 2023. However, with the stock’s price-to-sales ratio over 26x and no profits yet, it remains a speculative investment.

SoundHound AI’s Houndify platform aids voice assistant interactions by processing speech in real-time and understanding user intent. The company has strong ties in the automotive sector, with deals signed with multiple auto brands and partnerships in quick-service restaurants. Revenue is projected to reach $63-$77 million in 2024, with a backlog of $661 million.

Nvidia’s collaboration with SoundHound AI on in-car voice AI is promising, but with SoundHound’s speculative nature and high valuation, cautious investing is advised. While the company’s technology is impressive and has potential for growth, competition in the rapidly evolving AI field poses risks. Investors should proceed with caution and consider potential alternatives for investing opportunities.



Read more at Nasdaq: Nvidia Invested in SoundHound AI Stock, But Should You?