Select Wall Street analysts expect shares of SoundHound AI and Tesla to rocket higher. Semiconductor company Nvidia has led the S&P 500 higher this year amid mounting interest in artificial intelligence (AI). But we are still in the early stages of the AI boom, and certain Wall Street analysts are pounding the table on alternative investments. For example: Gil Luria at DA Davidson expects SoundHound AI (SOUN -0.41%) to reach $9.50 per share in the next 12 months. That forecast implies 98% upside from its cu ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on SoundHound AI, Inc. (SOUN), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank. Brokerage Recommendations - SoundHound AI has an average brokerage recommendation (ABR) of 1.33, indicating a consensus between Strong Buy and Buy, with 83.3% of the six recommendations being Strong Buy [2][3]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success of brokerage recommendations in predicting stock price increases [3]. Analyst Bias - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" recommendation, which may mislead investors [4][8]. - The interests of brokerage firms may not align with those of retail investors, suggesting that the ABR may not provide reliable insights into future stock price movements [5]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [6][9]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely changes in earnings estimates, while the ABR may not always be up-to-date [7][10]. Current Earnings Estimates - For SoundHound AI, the Zacks Consensus Estimate for the current year remains unchanged at -$0.36, indicating steady analyst views on the company's earnings prospects [11]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for SoundHound AI, suggesting caution despite the Buy-equivalent ABR [12].

SoundHound AI could bring generative AI to a drive-thru restaurant near you. If you are anything like me, you might be tired of hearing about artificial intelligence (AI) chips. While enabling hardware is necessary, it should take a back seat to the real-world use cases of the algorithms it helps to train and run. SoundHound AI (SOUN 0.65%) is interesting because it is helping bring this technology further into mainstream use, and its stock might make a compelling long-term investment. Why SoundHound AI? Fo ...

AI stocks have skyrocketed in value. One little-known gem looks ready to join the pack. The AI craze has taken the market by storm, dominated by chipmaker Nvidia. Over the last three years, Nvidia stock has skyrocketed in value by nearly 400%. But there are other AI stocks worth considering right now. One in particular -- a little-known gem with a relatively small market cap -- looks ready for a bull run. This AI stock has huge potential upside If you want to invest in AI stocks with maximum potential upsid ...

SoundHound AI is a leader in conversational AI technologies, and it's amassing an impressive list of customers. Back in February, Nvidia (NVDA -4.08%) released its first-ever 13-F filing, which revealed that the company bought a handful of stocks in the final quarter of 2023. Each of them has a presence in the artificial intelligence (AI) industry, so it's a good way for Nvidia to capture value from that space outside its core semiconductor business. Nvidia bought 1.7 million shares of SoundHound AI (SOUN - ...

Investment Thesis - SoundHound AI is a transformative player in the AI-driven voice and conversational intelligence market, with trailing revenue increasing from $20 million to $55 million over the last two years, indicating strong growth potential [2] - The company has a debt-free balance sheet and strategic acquisitions that enhance its attractiveness as a growth stock in the AI landscape [2] - SoundHound's voice AI solutions are integrated into major automotive brands and the restaurant industry, which constitutes 25% of its overall revenue [2][4] Revenue Growth - SoundHound reported Q2 2024 revenue of $13.5 million, a 54% increase year-over-year, driven by expanding contracts and successful acquisitions [4] - The company has a backlog of $723 million in long-term contracts, growing 113% year-over-year from $339 million, indicating strong demand for its AI solutions [6] Strategic Acquisitions - The acquisition of Amelia, a leader in enterprise AI software, allows SoundHound to penetrate new verticals such as finance, insurance, and healthcare, broadening its market reach [5] - Recent acquisitions are expected to enhance SoundHound's ability to offer comprehensive AI solutions, positioning it as a go-to provider for businesses integrating conversational AI [5] Financial Metrics - SoundHound's adjusted net loss narrowed from $20 million in Q1 2024 to $15 million in Q2, showing signs of financial improvement [7] - The company has over $200 million in cash and has prepaid $100 million in debt, saving $55 million in interest and fees, reflecting prudent financial management [7][8] Market Penetration - SoundHound's technology is being integrated into vehicles from brands like Peugeot, Vauxhall, and Alfa Romeo, and it is set to roll out its voice assistant with generative AI capabilities in a leading U.S. electric vehicle manufacturer [9] - In the restaurant industry, major chains like White Castle and Jersey Mike's are adopting SoundHound's AI solutions, enhancing customer experience and operational efficiencies [9] Valuation and Price Target - With a current market cap of approximately $1.58 billion, SoundHound's stock is considered undervalued compared to the tech sector, with expected revenue growth exceeding $80 million by the end of 2024 and $150 million in 2025 [10][16] - The current price-to-sales (P/S) ratio is approximately 19.73x based on 2024 projected revenue, indicating high expectations for future performance [17][18]

J Studios SoundHound: Expanding Further Into Enterprise Verticals SoundHound AI, Inc. (NASDAQ:SOUN) is an unprofitable AI company focusing on breakthrough technologies in Conversational and Voice AI. It has benefited from the surge in demand for Generative AI offerings as companies aim to broaden their adoption. As a specialist in Voice AI, SoundHound AI's product suite has the potential to integrate across several industry verticals and with the market-leading LLMs. SoundHound Chat AI's partnership with Pe ...

SoundHound AI is an artificial intelligence company with obvious real-world utility. It's been around two years since the launch of OpenAI's ChatGPT started the generative artificial intelligence (AI) hype cycle. Since then, industry leaders like Nvidia and Super Micro Computer have added billions to their market caps by providing enabling hardware. However, consumer-facing AI software seems yet to reach its full potential. Let's explore why SoundHound AI (SOUN -0.21%) could be an excellent way for investor ...

SoundHound AI (SOUN) shares have jumped 135.9% year to date (YTD), outperforming the Zacks Computer & Technology sector's gain of 21.3% and the Zacks Computers – IT Services industry's return of 3%. It has outperformed industry peers like ServiceNow (NOW) , Infosys (INFY) and Vertiv (VRT) over the same timeframe. NOW, INFY and VRT shares have gained 17.2%, 22.1% and 62.5%, respectively. SoundHound AI shares have been benefiting from a strong portfolio, a solid partner base and an expanding clientele. SOUN o ...

Is SoundHound AI the next big thing in tech? Check out the secret sauce in this AI expert's recipe for success. There is one very simple reason I expect SoundHound AI (SOUN 2.03%) stock to beat the market over the next seven years. The company has a huge backlog of long-term contracts and other unfilled orders, just waiting to convert into cash-based revenues. Market makers seem to have missed this as-yet untapped source of future sales -- and the average contract in SoundHound AI's backlog pool is a seven- ...