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Buy SoundHound stock as Nvidia continues to rally – analysts recommend

By: Invezz
buy soundhound stock as nvidia rallies

Nvidia Corp (NASDAQ: NVDA) at close to $1,000 per share may not be suitable for many interested in playing the AI space but don’t have a lot of capital to put on the line.

If that’s you, SoundHound AI Inc (NASDAQ: SOUN) may be a reasonable alternative for you, as per the Wall Street analysts.

Nvidia recently invested in SoundHound stock

To be fair, SoundHound stock has also more than doubled since the start of this year.

But a $3.7 million stake in $SOUN that Nvidia revealed last month speaks volume to how well it’s positioned to benefit from the rapid growth in artificial intelligence. According to Dan Ives – a senior Wedbush Securities analyst:

The company is in a strong position to capture its fair share of the AI chatbot market demand wave with its technology providing more use cases going forward.

Plus, there’s always a possibility that $NVDA eventually ends up making a bigger investment in SoundHound.

Watch here:$SOUN will continue to grow its market share

The Nasdaq-listed firm has already added notable names in the restaurant space like Krispy Kreme, White Castle, and Jersey Mike’s as customers – and will continue to expand its total addressable market as major players like Wendy’s, DoorDash, and of course, McDonald’s remain interested in deploying AI voice.

That’s according to Gil Lura – a D.A. Davidson analyst who estimates its TAM at about $11 billion.

Other than hospitality, $SOUN does also caters to the automotive industry. According Glenn Mattson of Ladenburg Thalmann:

Penetration into that customer set only amounts to 1-2% of global sales, leaving significant room for growth within the current customer base as well as growth from adding news brands.

Mattson recommends owning SoundHound stock because he’s convinced that voice enabled units will grow to 70% of shipments over the next two to three years.

"Voice-automated ordering systems continue to be widely accepted, with 79% of participants at least somewhat likely to return to a restaurant that uses automated voice systems for drive-thru, 74% for phone systems, and 70% for dine-in use." @Deloitte

— SoundHound AI (@SoundHound) March 7, 2024

All in all, Wall Street currently rates SoundHound shares at “buy” particularly after the management said “demand is going through the rood” on the recent earnings call.

The post Buy SoundHound stock as Nvidia continues to rally – analysts recommend appeared first on Invezz

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