SoundHound's Voice Tech Expands Beyond Music as IBM's AI Focus Fuels Financial Turnaround
• SoundHound built a powerful audio recognition engine called Houndify based on its music identification app. It now provides voice-driven tools for industries like automotive and restaurants.
• SoundHound's revenue has nearly doubled since its IPO to $38.2 million, though it is still unprofitable. As it expands into new markets, it has significant growth potential.
• IBM has pivoted to focus on high-margin cloud computing and AI services under its Watson platform, moving away from its legacy hardware business.
• IBM's sales, cash flows, and earnings per share have steadily increased over the past two years as it focuses more on cloud and AI.
• IBM trades at an inexpensive valuation despite its leadership in AI. For investors, it represents a promising way to invest in AI without the lofty valuations of companies like Nvidia.