SoundHound AI (SOUN) has seen a staggering 1,064% rise in its stock this year, and an incredible 1,940% over the past two years. This surge is largely driven by the AI boom, strong financial performance, and a strategic investment from Nvidia.
The company specializes in voice AI, offering solutions for everything from in-car assistants to healthcare applications. Its client base includes over 200 enterprise clients such as Kia, Honda, and Krispy Kreme. Additionally, SoundHound’s global reach, supporting 25 languages, makes it appealing to large corporations.
One key move for SoundHound was acquiring Amelia, an enterprise AI company, which helped expand its presence in industries like healthcare and finance. This diversification is reducing its reliance on automotive clients, which now make up just 25% of its customer base.
While the company’s growth is impressive, its valuation raises concerns. At a $9 billion market cap and a forward P/S ratio of 90, SoundHound is trading well above peers like Palantir and Nvidia, both of which are profitable. This high valuation puts pressure on SoundHound to maintain its growth trajectory.
So, what’s your take on SoundHound? Do you think it can sustain its impressive run, or is the market overly optimistic about its future?