Penny stock SoundHound AI (NASDAQ:SOUN) has risen significantly on a year-to-date basis (see the chart below). The company that offers voice AI (artificial intelligence) solutions has gained from the advancements of AI and its growing applications across various industries. The solid demand environment and its new offerings augur well for future growth.
The company’s CEO, Keyvan Mohajer, said during the Q1 conference call that the company is experiencing a surge in demand for conversational AI, which drove its revenue higher. Moreover, the company, with its full stack of technology for conversational voice AI, is benefiting from the addition of new customers and retention of existing ones.
The AI Opportunity to Support Growth
The company integrated Generative AI and large language models into its offerings and launched SoundHound Chat AI, a powerful new voice AI assistant. Moreover, the company closed new deals in the segments where it powers devices such as cars, TVs, and IoTs (Internet of Things) with its conversational AI offerings.
SoundHound remains upbeat and expects more brands to come on board. The company projects an increase in the shipments of cars, TVs, and IoTs with its technology.
SOUN is expanding its AI customer service solutions from restaurants to other businesses. Moreover, it is seeing solid demand from existing customers and new brands for its customer service applications.
Overall, its advanced and comprehensive technologies, innovative products and services, and affordable pricing position it well to capitalize on the growing enthusiasm around AI.
Will SoundHound Stock Go Up?
Despite the appreciation in its price seen this year, high demand supports SoundHound’s bull case. The company also became part of the Russell 2000 and Russell 3000 indices in June.
The company has two Buy recommendations on Wall Street. Moreover, the average SOUN stock price target comes in at $3.65, implying 39.05% upside potential from here.
While SOUN stock offers solid growth opportunities, investors can leverage TipRanks’ penny stock screener to find other attractive Penny stocks with the potential to deliver significant returns.
