SoundHound AI stock surged 936% in 2024, but trading at high valuation

From Nasdaq: 2024-12-31 09:30:00

SoundHound AI has seen a 936% surge in its stock price in 2024, driven by strong growth and investor optimism. However, the stock is trading at a high valuation of 109 times sales, making it expensive. Investors may want to consider alternatives like AMD, which is poised for growth in the AI market.

AMD has underperformed but is making strides in the AI chip market, with data center revenue growing 122% year over year. Analysts expect a turnaround in 2025, with revenue forecasted to increase by 13% and the stock trading at a discount to its peers. AMD could be a solid AI stock pick for investors.

AMD’s focus on AI chips and the PC market could lead to significant revenue growth in 2025. With a forward earnings multiple of 25 and potential for strong bottom-line growth, AMD is positioned for healthy gains. Investors looking for an AI stock with growth potential should consider AMD over pricier options like SoundHound.



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