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The artificial intelligence (AI) rally continues to surge ahead, with Soundhound AI’s stock climbing a significant 272% in 2024. As the stock reaches levels last seen in June 2022, some wonder if there is a risk of a sharp turnaround.
For analysts at Navellier, Soundhound AI is deemed as “obviously a pump and dump stock.”
Riding the AI wave
Soundhound is not the only AI company benefiting from investor enthusiasm for the technology. Other AI companies like Nvidia, AMD, and Super Micro Computer have also been riding the AI wave.
Despite this, Soundhound AI shares have seen remarkable gains, increasing by over 330% in value in the last 12 months. The stock currently sits at around $7.70 per share after a slight pullback following an initial high of over $10.
What does Soundhound AI do
Based in Santa Clara, California, SoundHound AI is a voice and audio AI platform offering voice AI solutions such as automatic speech recognition, text-to-speech, multiple languages, and branded wake words. Its mobile app uses Automatic Content Recognition (ACR) technology to identify songs and provides features like real-time lyrics and voice-activated music search.
Soundhound AI stock forecast
Analysts at DA Davidson raised their price target for Soundhound AI to $7.50 per share, citing elevated demand for the company’s AI solutions. Despite positive forecasts, Navellier analysts expressed concerns about the company’s earnings outlook and market valuation.
Navellier analysts believe that Soundhound AI is a “pump and dump” stock, expecting its bubble to burst after a significant surge since early February.
