SoundHound AI Stock Soars 180% on Speculation of Generative AI Growth Despite Widening Losses
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Nvidia recently invested in 5 AI companies, with the largest investment in Arm Holdings. However, SoundHound AI stock has soared the most, up 180% in 2024.
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SoundHound provides conversational AI to companies to automate customer interactions. Its order backlog hit $661M in 2022, indicating potential high growth.
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SoundHound expects 49% revenue growth to $70M in 2024. However, it lost $88.9M in 2023 and only has $99.5M cash on hand.
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Investors speculated Nvidia's deal with ServiceNow involving generative AI could benefit SoundHound in the future.
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At over 3x this year, SoundHound stock is speculative but could reward investors willing to accept volatility.