10 Most Promising AI Stocks According to Analysts

2. SoundHound AI, Inc. (NASDAQ:SOUN)

Analyst Upside as of October 9, 2024: 50%

Number of Hedge Fund Holders: 15

SoundHound AI, Inc. (NASDAQ:SOUN) is one of the most promising AI stocks. The voice recognition company was founded in 2005 and has been growing to become an AI entity, serving various industries including automotive, TV, and the Internet of Things. Its independent voice AI platform is used by prominent companies from across the globe including Hyundai, Chipotle, Vizio, White Castle, Papa Johns, LG, Samsung, and Motorola, among others.

Brands can use the company’s Houndify platform to create conversational voice assistants. The platform also allows businesses to customize commands, texts, and voice queries. Other applications by the company include SoundHound Music App and SoundHound Chat AI. As of the second quarter of 2024, SoundHound AI, Inc. (NASDAQ:SOUN) hit a milestone after its voice assistant reached an annual run rate of 5 billion, up by 90% year-over-year. In addition to that, the company has a backlog of $723 million, as of Q2 2024, and logged $13.5 million in revenue, growing by 54% year-over-year.

SoundHound AI is growing, but not just in terms of revenue. During the second quarter, SoundHound AI, Inc. (NASDAQ:SOUN) signed plenty of partnerships and acquisitions to keep its expansion strategy alive. The company acquired Amelia, an enterprise AI software company, to enhance its footing in different verticals and improve its customer service. In addition to that, the company took one of the largest pizza chains in the world as a client and also signed the acquisition of key assets from Allset, an online ordering platform. The partnership will add more restaurants to SoundHound’s client roster. During the same quarter, the company partnered with Perplexity to bring online LLMs to SoundHound Chat AI, allowing users to ask more complex questions across devices.

Overall, SoundHound AI, Inc. (NASDAQ:SOUN) is one of the leading AI stocks and holds strong growth potential with all its partnerships in the pipeline. While its growth trajectory is significant, the threat of springing competitors must be considered.