SoundHound AI Stock Soars 200% But Path to Investor Riches Remains Unclear
• SoundHound AI is an AI-powered voice recognition software company that has seen its stock price soar 200% in 2023. It partners with major companies like Hyundai and Qualcomm.
• SoundHound AI operates in a large potential market worth $50 billion, but its revenue was still small at just $45.9 million in 2023. It is unprofitable but improved its earnings margin last year.
• SoundHound AI is forecast to grow revenue 50% yearly through 2025, which would lead to $100 million in revenue by 2025 if achieved.
• For SoundHound AI to make an investor a millionaire by 2030, revenue would need to grow over 50% yearly to $780 million and trade at a price-to-sales ratio of 15x.
• While possible, it is highly unlikely SoundHound AI grows revenue at 50% for 8 straight years. More prudent investments for wealth building are index funds or larger established tech companies.