Why SoundHound AI Inc. (SOUN) Skyrocketed Yesterday

We recently compiled a list of the 10 Hottest Stocks: What’s Fueling Their Rise. In this article, we are going to take a look at where SoundHound AI Inc. (NASDAQ:SOUN) stands against the other stocks that skyrocketed yesterday.

Ten companies—predominantly involved in the quantum computing sector—have taken the spotlight on Thursday, booking significant gains despite a lackluster performance from Wall Street’s main indices.

To come up with Thursday’s top gainers, we considered only the stocks that have at least $2 billion in market capitalization and $5 million in daily trading volume.

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

SoundHound AI Inc. (NASDAQ:SOUN)

SoundHound AI continued to be in the stock market spotlight, recording an impressive 19.71-percent increase in Thursday’s trading to finish at $24.33 each.

The year-to-date stock price also marked a whopping 1,064 percent rally, indicating a very positive reception from investors.

According to analysts, the company’s performance was fueled by the booming AI industry, which allowed for a more bullish coverage.

On Monday, SoundHound AI earned a buy rating and a higher target price from HC Wainwright from $8 per share to $26 apiece.

While Wainwright’s analysts noted that recent valuation gains were primarily driven by market excitement, they believed that the company will perform well enough to support its growth-dependent valuation.

Overall SOUN ranks 4th on our list of the stocks that skyrocketed yesterday. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.

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