Voice artificial intelligence (AI) platform operator SoundHound AI (SOUN) is experiencing a huge rally on Thursday alongside increased investor interest in the company’s stock. This has shares of SOUN stock climbing 28.08% higher as of this writing. To go along with that, trading activity is heavy today, with 108.63 million shares having changed hands. For comparison, the company’s daily average trading volume over the last three months is a fraction of that at 27.42 million units.
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SoundHound AI has been a favorite, with investors capitalizing on the AI boom. That’s resulted in the company’s shares seeing a massive 537.26% increase year-to-date. The stock is also up 546.41% over the last 12 months.
SoundHound AI is among a list of meme stocks that have been boosted greatly by speculative traders. That momentum has carried the stock far today with it hitting a new 52-week high of $13.71 earlier today.
What’s Behind the Latest SOUN Stock Rally?
There are several bits of SoundHound AI news today that help explain why the shares are rising. Among these is the addition of AI ordering at Torchy’s Tacos. This allows customers to order their food with the help of a SoundHound AI before having it delivered by an Uber (UBER) driver.
While it’s always good news for investors when SoundHound AI signs a new partnership, the deal with Torchy’s Tacos likely isn’t behind today’s major movement. Instead, traders will have to accept that meme investors are the most likely catalyst of today’s rise.
All of this movement may have investors considering a stake in SOUN stock, but five-star blogger Juxtaposed Ideas warns that “SOUN’s expensive valuations and delayed path to profitability offer a minimal margin of safety, worsened by the volatility arising from the (potential) AI bubble.”
Is SOUN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for SoundHound AI is Moderate Buy based on three Buy ratings and two Hold ratings. With that comes an average price target of $8.10, a high of $10, and a low of $6. This represents a potential downside of 37.45% for SOUN shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
