The Investment Journey of SoundHound AI's Stock

Exploring the history and the potential future of SoundHound AI, a company specializing in audio analysis and voice control, provides insight into the challenges and opportunities faced by new entrants in the stock market. Having become a publicly traded entity in April 2022, SoundHound AI, despite its near two-decade existence, was a newcomer to Wall Street investors.

For those who invested $10,000 in SoundHound AI stock two years past its IPO, their portfolios have not fared as well as hoped. The initial optimism surrounding the company's focus on AI analytics right before the boom of ChatGPT-like technologies has not translated into positive returns, with that investment now being valued at just $7,482.

What happened to SoundHound AI?

The timing of SoundHound AI's market entry was less than ideal, coinciding with the 2022 inflation crisis. The company had yet to prove profitable, with minimal revenue—a factor that made investors wary during a period when long-term growth prospects were not the market's focus.

However, the company experienced a surge in stock price when the AI heavyweight Nvidia announced a modest investment. This $3.7 million investment boosted shareholder confidence, and SoundHound AI's stock price briefly soared. Despite this, the stock price has since settled more than 40% below the levels reached during the Nvidia-led spike.

Does SoundHound AI still have a future?

Not all is bleak for SoundHound AI's prospects. Its innovative voice recognition AI technology is increasingly finding applications across various industries like restaurants, automotive, consumer electronics, and call centers.

While current revenues are modest—$6.7 million reported in Q1—the groundwork for future growth has been laid. This is evidenced by SoundHound AI's reported backlog of orders valued at $682 million in the first quarter of 2024, a significant jump from previous years. These orders, which are expected to materialize into revenue in the coming years, signify potential for the company's long-term growth.

Investors are thus encouraged to persevere with their stake in SoundHound AI or consider embarking on a new investment, as the company's burgeoning order book and fresh contracts point toward a hopeful future trajectory for the stock.

investment, technology, potential