Soundhound AI Stock Surges 272% in 2024, Analysts Warn of Potential Sharp Turnaround
The artificial intelligence (AI) rally is in full swing, with voice AI and speech recognition company Soundhound AI seeing its stock climb a significant 272% in 2024. However, as the price of Soundhound AI stock reaches levels not seen since June 2022, analysts are warning of a potential sharp turnaround.
According to analysts at Navellier, Soundhound AI is “obviously a pump and dump stock.” While the company is not the only AI company benefiting from investor enthusiasm for the rapidly expanding technology, the gains made by Soundhound AI have been remarkable, with the stock up more than 330% in value over the last 12 months.
Based in Santa Clara, California, Soundhound AI 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. The company’s mobile app utilizes Automatic Content Recognition (ACR) technology to identify songs after hearing a few bars, similar to the Shazam app.
Analysts at DA Davidson recently raised their price target for Soundhound AI to $7.50 per share, citing elevated demand for the company’s AI solutions. However, Navellier analysts caution that while the company’s first-quarter sales are forecasted to grow, its earnings are expected to decline.
With Soundhound AI trading at 38.4 times the forecasted 2024 revenue, Navellier analysts believe the stock is a “pump and dump” stock and expect its bubble to burst after surging over 400% since early February. Investors are advised to proceed with caution as the AI stock continues its volatile ride.
