Why SoundHound AI, Inc. (SOUN) Soared At The Start Of The Trading Week

We recently compiled a list of the 10 Firms Kick Off Trading Week Soaring. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against the other stocks.

Wall Street’s main indices kicked off the trading week soaring on Tuesday amid a series of catalysts from President Donald Trump’s inauguration event that fueled investor sentiment.

The Dow rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

On Tuesday, 10 companies—mostly under the space exploration, energy, and quantum computing sectors—registered the highest gains. In this article, let’s take a look at their impressive performance.

To come up with Tuesday’s top gainers, we considered only the stocks with 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)

Shares of SoundHound AI (NASDAQ:SOUN) surged by 21.11 percent on Tuesday to end at $16.52 apiece in line with the broader market optimism, as investors took heart from announcements by President Donald Trump to support the artificial intelligence industry through a $500-billion government funding.

SoundHound AI (NASDAQ:SOUN) is part of a growing ecosystem fueled by major players like OpenAI, which recently formed a partnership with SoftBank and Oracle, for a joint venture company called Stargate, with an initial $100 billion investment and plans to commit up to $500 billion over the next four years to propel the AI industry.

SoundHound (NASDAQ:SOUN), whose share price has skyrocketed by 734 percent to date, is poised to reap even greater benefits from the government’s AI-focused support over the coming years.

Overall SOUN ranks 6th on our list of the firms that kicked off the trading week soaring. 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 as promising as SOUN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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