From Barchart: 2024-04-28 04:15:00

SoundHound AI (NASDAQ: SOUN) attracted attention after Nvidia (NASDAQ: NVDA) invested in it for the upcoming AI revolution. SoundHound, one-hundredth of Arm’s size, shares a similar royalty revenue model with Arm, deriving over 94% of its revenue from product royalties in 2023. Both companies are benefiting from the AI revolution and have teamed up with Nvidia.

SoundHound reported a 47% increase in revenue to $45.9 million for 2023 with a booking backlog of $661 million. As AI becomes more prevalent in everyday life, SoundHound’s platform is likely to see increased adoption, especially in the automobile and restaurant industries. The company has strong potential for future growth if it continues to innovate and secure new partnerships.

Investors should consider SoundHound AI for long-term upside potential despite not being one of the 10 best stocks identified by the Motley Fool Stock Advisor team. The company’s partnerships and revenue model indicate promising growth opportunities. SoundHound AI’s success could be significant in capturing market share in the AI voice technology space.



Read more at Barchart: Could SoundHound AI Stock Become the Next Arm Holdings?