7 Unstoppable Artificial Intelligence (AI) Stocks To Buy Now

3. SoundHound AI (NASDAQ:SOUN)

Number of Hedge Fund Holders: 15

Performance (Year-to-Date) as of September 4: 115.09%

SoundHound AI (NASDAQ:SOUN) uses voice AI in speech recognition and understanding, connecting people to brands through customized conversational experiences with voice-enabled products, services, and apps for greater control and brand ownership of the customer experience.

It’s the first company to offer ChatGPT-like features in car assistants in Japan and Latin America. By partnering with Perplexity, they’ve added advanced online language models to their SoundHound Chat AI, which will be available soon. Automakers are willing to pay more for this upgrade, and management expects higher revenue per unit.

SoundHound AI (NASDAQ:SOUN) announced the acquisition of the AI startup, Amelia AI, for $80 million in the second quarter of 2024. In June, it also bought Allset, an ordering platform for restaurants. It also expanded its customer base by winning deals with 5 of the top 15 QSRs (Quick-Service Restaurants) based on the number of locations.

The company recorded 50% revenue growth per year since 2021. Second quarter revenue was up 54% and cumulative subscriptions and bookings backlog roughly doubled year-over-year to $723 million and annual query volume exceeded 5 billion. As of June 30, 15 hedge funds were long in the company.

SoundHound AI’s (NASDAQ:SOUN) AI technology is resonating with customers. It offers advanced capabilities, data protection, and a strong foundation model. Customers are switching to its product, Polaris, for improved performance and efficiency. This makes the company well-positioned for future growth among other AI stocks.