SoundHound AI potential growth similar to Nvidia, but stock high risk, high reward

From Nasdaq: 2024-04-06 07:13:00

SoundHound AI (NASDAQ: SOUN) has become a popular AI stock due to its accessibility with a $5 price and investment from Nvidia. With room to grow, investors see potential for it to become the next Nvidia, despite differences in products. Its innovative AI products are making waves in drive-thrus, mobile ordering, and vehicles.

SoundHound’s revenue grew 80% in Q4 to $17.1 million, but its operating expenses remain high at $29.5 million. However, a backlog of $661 million in signed deals could lead to significant revenue growth. The stock trades around 27 times sales, reflecting optimism about the firm’s potential to convert backlog into revenue.

SoundHound looks promising with high-risk, high-reward potential, making it a speculative investment. Position sizing is key, with experts suggesting a 1% portfolio allocation due to volatility. It could either soar like Nvidia or fail, so investing cautiously is wise. The Motley Fool Stock Advisor team doesn’t include SoundHound in its top 10 stocks but predicts significant returns for chosen stocks.



Read more at Nasdaq: Could SoundHound AI Become the Next Nvidia?