Investing

SoundHound AI (SOUN) Gets Another Massive Tailwind

Austin Smith

Published: December 14, 2024 8:58 am

Key Points:

• Driven by its speech AI technology, SoundHound AI (NASDAQ: SOUN) has enjoyed exponential stock rise.
• In cost-sensitive sectors like fast food, where AI may replace high labor expenses, especially in areas like California with growing minimum wages, the company is gaining traction.
• Though not yet profitable, the stock’s potential for adoption by bigger chains or acquisition by a significant player like NVIDIA (NASDAQ: NVDA).
• Also: Are you ahead, or behind on retirement? Click here to find out. (sponsored) 

Watch the Video

Transcript:

[00:00:00] Douglas McIntyre: Okay. SoundHound. Not a company I know a lot about, but you do. So

[00:00:05] Lee Jackson: I do.

[00:00:06] Douglas McIntyre: Why is it, if you want to be in the AI sector, why is it something that anybody, why would you look at it?

[00:00:13] Lee Jackson: Well the reason, and, and it’s been an interesting story and it’s just. Absolutely exploded higher was trading at a dollar this time a year ago, and it looked like a crash and burn, but they have a I that works with voice. In other words, you know, they can use them in automobiles. You can be used, at establishments that serve customers, and it exploded recently much higher. I mean, it went from six to eight to 10. It, I think earlier today it was trading up near $15 and although they don’t make any money, of course, but they have a huge order going to a company called Torchy’s. tacos. I don’t know if you have those up in the Northeast but they’re huge in Texas and they’re delicious.

[00:01:01] Lee Jackson: They’re wonderful, fast food Mexican restaurants but not Taco Bell kind of fast food. You know the food’s actually very very good. You know, they serve beer and it, the Torchy’s Tacos Company is ordering, a SoundHound AI products, voice products to take customer orders and things like that to be in every one of their 144 stores around the country.

[00:01:25] Lee Jackson: And that’s a huge start.

[00:01:28] Douglas McIntyre: I’m looking the stock up now. It’s impressive. Yeah.

[00:01:31] Lee Jackson: And it’s just and it’s been and it’s the you know, because of the you know, it was a single digit midget for The last year, you know people were you’re kind of trading it back and forth that they started You know the the earnings have started to improve not earnings, but the revenue has started to improve But now that they got this order. Think of McDonald’s said Hey, we can use that technology or Burger King or Kentucky Fried Chicken or any number of fast food joints that want to have ai recognition because one of the things they’re trying to do at fast food Is to cut down on costs especially in places like California where they’re You know, saying, oh, you gotta pay these guys, you know, they’re high school kids.

[00:02:11] Lee Jackson: You gotta pay ’em 20 bucks an hour. They’re like, that’s just crimping us too bad. So this is a stock to watch. I think it really is one that, again, it, it’s super, super, super aggressive. It’s not for. Long term or baby boomer investors or anything like that, but it certainly is something that investors can look at and say, well, maybe this is a possibility and maybe they get bought at some point.

[00:02:35] Lee Jackson: And Nvidia has owns a fair amount of shares.

[00:02:39] Douglas McIntyre: No,