Shares of SoundHound AI (SOUN) have gained nearly 136% year-to-date and significantly outperformed the Nasdaq 100 Index (NDX) rally of about 18%. The company that provides voice AI (artificial intelligence) solutions has benefited from the AI boom. Despite this stellar rally, hedge funds are optimistic about this penny stock (learn more about penny stocks here).
Using TipRanks’ Hedge Fund Trading Activity tool (which analyzes data from Form 13-Fs to offer hedge fund signals), we can see that these experts actively accumulated SoundHound shares in the last quarter.
Based on the activity of eight hedge funds, the Hedge Fund Confidence Signal is Very Positive for SOUN stock. Further, these experts increased their SOUN holdings by 804,900 shares in the last quarter.
STLA Partnership Fuels Optimism
The company integrated Generative AI and large language models into its offerings and launched SoundHound Chat AI, a powerful new voice AI assistant.
It should be mentioned that SOUN recently expanded its partnership with automaker Stellantis (STLA) to integrate ChatGPT into vehicle digital assistants across 17 European markets using 12 languages. This integration significantly enhances capabilities, allowing users to tackle more complex tasks beyond basic voice commands.
Is SOUN Stock a Good Investment?
With four Buy and one Hold recommendations, SoundHound currently boasts a Strong Buy consensus rating on TipRanks. At the same time, the analysts’ average price target on SOUN stock of $7.50 implies 50% upside potential from current levels.
