SoundHound Stock Surges 250% on AI Growth Prospects, But Valuations Now Stretched
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SoundHound AI develops voice and speech recognition AI technologies, generating revenue from royalties and subscriptions. It sees a $160B market opportunity by 2026.
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SoundHound's revenue grew 47% YoY in 2022 to $45.9M. It expects $63-77M in 2023 and over $100M in 2025 with positive adjusted EBITDA.
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The stock price has surged over 250% since Nvidia disclosed its investment, lifting valuations to very high levels compared to peers.
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Analysts see 19.87% upside for the stock, rating it a Strong Buy, though technical indicators are mixed after the recent run-up.
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Long-term investors are excited about the AI opportunity, but current valuations may retreat if the sector sees a correction.