SOUN - Is SoundHound AI Stock a Buy in May?
2024-05-12 08:30:00 ET
With shares up by an eye-watering 129% year to date, SoundHound AI (NASDAQ: SOUN) is one of 2024's hottest technology stocks. The audio-focused artificial intelligence (AI) company has received attention from industry giants like Nvidia , contributing to its meteoric rise. But does the company really deserve the recent hype? Let's dig deeper to find out.
SoundHound is a voice AI and speech recognition software company founded in 2005. Despite its initial public offering (IPO) -- a few months before the launch of OpenAI's ChatGPT in 2022 -- the stock languished in relative obscurity until February 2024, when the megacap chipmaker Nvidia disclosed ownership of 1.7 million SoundHound shares.
Unsurprisingly, the filing kick-started investor interest in SoundHound. Entities usually buy stock because they expect it to be worth more in the future . And Nvidia's bet on SoundCloud made investors wonder what the giant chipmaker knew that the rest of the market didn't. That said, there are also some reasons people should temper their enthusiasm.
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Is SoundHound AI Stock a Buy in May?