Here’s Why SoundHound AI, Inc. (SOUN) Is Skyrocketing

We recently compiled a list of the Why These 24 Stocks Are Skyrocketing. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against the other stocks.

One of the strongest stock market anomalies is the momentum effect, which is the tendency of recent past winners to outperform the recent past losers. That’s why we decided to take a look at some of the recent past winners in this article. These 24 companies, predominantly involved in the quantum computing, biotechnology, and technology sectors, have performed significantly well in the final quarter of 2024, registering spectacular returns over the 3 months.

That said, let’s take a look at the top 24 stocks that have skyrocketed and pose a solid growth opportunity in the coming year. We will also explore how well the stocks have performed throughout the year and what they have in store for 2025.

To come up with 24 names, we considered only the stocks that have at least $2 billion in market capitalization and have registered commendable returns in the fourth quarter of 2024.

A software engineer focused on a computer screen, writing code to create a conversational assistant.

SoundHound AI, Inc. (NASDAQ:SOUN)

Q4 Returns as of December 31, 2024: 326%

SOUN registered a 326% growth in its share price in Q4 2024, finishing the quarter ended December 31 at $19.8 apiece from the $4.66 close on September 30, 2024.

SOUN has diversified into several industries and customers, as of Q3 2024, logging  $25.1 million in revenue, growing by 89% year-over-year.

SoundHound AI is growing, but not just in terms of revenue. During the third quarter, the company signed plenty of partnerships and acquisitions aligning with its expansion strategy.

In December, the company onboarded Church’s Texas Chicken as a customer to power voice AI at the company’s drive-through. Similarly, on January 2, Lucid Motor launched their Lucid Assistant, powered by SoundHound Chat AI, in their electric vehicles.

Overall SOUN ranks 8th on our list of the stocks that are skyrocketing right now. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.