From Nasdaq: 2025-01-17 01:57:00

Zacks.com highlights NVIDIA Corp’s explosive growth in the AI sector, with its stock surging 149% in 2024. SoundHound AI, Inc has also seen a 663% increase, leading to speculation on whether it’s the next big thing in AI. SoundHound AI’s revenue grew by 89% in Q3, with revenue guidance raised for 2024 and 2025.

Despite SoundHound AI’s strong revenue growth and market potential, its high valuations and reliance on equity financing raise concerns. Competition from Alphabet Inc in the AI space, particularly with the adoption of its conversational AI platform by Mercedes-Benz, adds to the uncertainty surrounding SoundHound AI’s future growth.

Investors are advised to take a cautious approach towards investing in SoundHound AI stock, considering factors like valuation, competition, and the sustainability of its growth. While the company shows promise, it’s essential to evaluate the fundamentals behind its success and not solely rely on hype or speculation. SoundHound AI currently holds a Zacks Rank #3 (Hold), indicating a neutral stance on its stock.

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Read more at Nasdaq: The Zacks Analyst Blog NVIDIA, SoundHound AI, Chipotle Mexican Grill and Alphabet