TechDec 17, 2024
SoundHound AI Emerges As Russell 2000 Jewel With Stunning 831% Rally
Speech Technology
Daniel Schoester
Move over, Nvidia — there’s a new AI kingmaker in town. SoundHound AI has emerged as an explosive tech story, cementing itself as a Russell 2000 high flyer with an astounding 831% YTD gain. The voice-technology software provider is surfing what analysts project as a $1T tidal wave of AI spending.
- SoundHound’s meteoric rise has catapulted its market value to $6.71B, with record Q3 revenue of $25.1M —though the business has yet to turn a profit.
- Its voice AI technology powers customer service for major firms like Hyundai, Chipotle, and Panda Express — handling everything from drive-thru orders to in-car voice assistants while boasting a Nvidia partnership.
The road ahead looks promising: Wedbush analyst Dan Ives recently doubled his price target from $10 to $22, citing “demand mojo” and “solid AI-driven momentum.” However, Wall Street remains divided. Of seven analysts tracked by FactSet, only five recommend buying — and their average price target of $8.10 suggests a potential 59% downside. That said, with a name like SoundHound, it’s hard not to wonder if the company has let the dogs out.
