SoundHound AI, backed by NVIDIA, shows potential for growth with bullish analyst outlook.

From Nasdaq: 2024-11-06 07:08:00

Hyperscalers like Meta and AppLovin are driving AI tools’ success, particularly in advertising efficiency. Meanwhile, SoundHound AI is a key player in AI speech recognition, with a recent investment from NVIDIA. The company reports earnings on Nov. 12, prompting questions about its long-term potential and if it’s a buy before the release.

SoundHound’s past earnings performance has been mixed, with shares reacting both positively and negatively after results. Recent developments, like a partnership with MUSC Health, could impact upcoming earnings. Despite historical downside risk, the company’s substantial booking backlog suggests a potential for revenue growth and beating expectations.

Looking long term, SoundHound has a vast market opportunity, including applications in various industries. Analysts are bullish on the stock, with price targets implying a 43% upside. While the stock is expensive based on projected revenue, its adoption by large enterprises and diverse industry use cases are driving demand. Overall, a bullish view is held on SoundHound AI.



Read more at Nasdaq:: Is NVIDIA-Backed SoundHound AI a Buy Ahead of Nov. 12 Earnings?