The 2024 stock market has made headlines with its all-time highs and record-breaking gains. The S&P 500 index has reached new heights 50 times, thanks to factors like a resilient economy, falling interest rates, and growing enthusiasm for artificial intelligence (AI). One sector driving this growth is the AI market, which is expected to quadruple in revenue by 2030.
SoundHound AI, a leading voice recognition technology company, has seen its stock soar 578% so far this year. Its tech is being adopted by major companies like White Castle, Papa John’s, and Applebee’s for applications such as automated customer service and voice-activated ordering at drive-thrus. The company recently reported an 89% year-over-year increase in revenue to $25 million in the third quarter.
The AI market’s potential is vast, with Statista predicting a more than doubling of its growth by 2030. However, investors should be cautious due to SoundHound’s high valuation and lack of profitability. The company trades at 33 times its expected sales for 2025, making it one of the riskier stocks in the market. Analysts have set an average price target below the current stock price.
While some experts believe the AI market is a bubble, others see tremendous potential. As SoundHound continues to expand its customer base and increase revenue, investors should keep a close eye on its performance, especially after recent gains. A pullback may be due in the near future, making it an attractive opportunity for cautious investors.
Source: https://www.fool.com/investing/2024/12/08/after-an-incredible-578-run-will-this-artificial-i