SoundHound AI (NASDAQ:SOUN) stock is continuing to rise amid the frenzy for generative AI (GenAI).
SOUN stock opened at $7.28 a share this morning after selling for under $6 early on March 12. The rally has lifted the company’s market capitalization to over $2.2 billion.
This is the second big gain for SoundHound in just a month. It jumped from $4 to $7 in February.
A New Catalyst
The stock may rise further as the company prepares to present at the Nvidia (NASDAQ:NVDA) GPU Technology Conference on March 18. Nvidia is now worth over $2.2 trillion and is the third most valuable company in the world, after Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL).
SoundHound is a voice recognition company that originally sold its software to car companies. Now, it is using artificial intelligence (AI) to serve restaurants and call centers. Nvidia has invested in it.
But fellow InvestorPlace contributor Rick Orford believes SOUN stock is still undervalued. He says SoundHound’s Only Voice AI platform has wide applications in marketing and transcription of text-to-speech.
Voice services have recently become a popular AI niche. But SoundHound faces competition from Cloud Czars as well as an open source voice clone. Artists are worried that the new software will copy their voices and lead to fraud.
So far, SoundHound is trying to sidestep these problems. The company is focused on connecting database computing to voice recognition. Understanding the voice on the other end, rather than replicating any particular voice, is the aim.
SOUN Stock: What Happens Next?
Voice applications linking telephony to databases are low-hanging fruit for the AI revolution. SoundHound will need to show other innovations next week to keep the excitement growing.
As of this writing, Dana Blankenhorn had LONG positions in MSFT, AAPL, and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
