Soundhound AI stock is 'obviously' a 'pump and dump' stock - market watcher
As the artificial intelligence (AI) rally continues full-steam ahead, voice AI and speech recognition company Soundhound AI’s stock has benefitted, climbing a significant 272% in 2024. With Soundhound AI stock such a big AI winner and its price now at levels last seen in June 2022, is there a risk of an extremely sharp turnaround?
For analysts at Navellier, Soundhound AI is “obviously a pump and dump stock.”
Of course, Soundhound is not the only AI company reaping the rewards of investor enthusiasm for the rapidly expanding technology. Artificial intelligence “Picks and shovels” stocks such as Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI) have also been riding the AI wave.
Nevertheless, the gains made by SOUN shares have been remarkable, up more than 330% in value over the last 12 months, the stock now sits at around $7.70 per share after pulling back slightly on Thursday following an initial high of over $10.
Based in Santa Clara, California, SoundHound AI (NASDAQ:SOUN) is a voice and audio AI platform providing end-to-end voice AI solutions, including automatic speech recognition, text-to-speech, multiple languages, and branded wake words.
Its mobile app utilizes Automatic Content Recognition (ACR) technology to identify songs after hearing a few bars, similar to the Shazam app. Moreover, SoundHound provides additional features such as real-time lyrics, voice-activated music search, and Houndify, the virtual voice assistant.
At the beginning of March, analysts at DA Davidson raised their price target for Soundhound AI to $7.50 from $5 per share, maintaining a Buy rating on the stock. At the time, the firm told investors that demand for the company’s AI solution “remains elevated”
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