Why SoundHound AI (SOUN) and Quantum Computing (QUBT) Are Surging Today

SoundHound AI (SOUN) and Quantum Computing (QUBT) are both rallying by well over 20% today.

SoundHound develops voice-based AI solutions, while Quantum Computing sells quantum machines that are used to solve extremely complex problems and process data.

SOUN stock has been soaring since Monday, when Wedbush Securities analyst Dan Ives hiked his price target on the shares to $22 from $10 while keeping an outperform rating on the name.

Calling SOUN “an underappreciated pure play AI company,” Ives predicted that the company’s total addressable market and growth would both increase in 2025. Specifically, the analyst wrote  that the company, whose customers include Chip0tle (CMG)  and Panda Express,  would move into the e-commerce sector nest year.

Turning to Quantum Computing, the stock has been on an upward tear since yesterday when the company announced that it had received a contract from NASA. Under the deal, the space agency will utilize the firm’s  s entropy quantum optimization machine to facilitate its advanced imaging and data processing activities.

 In the last month, SOUN has jumped 270%, while QUBT is up 531% during the same time period.

While we acknowledge the potential of SOUN, our conviction lies in the belief that some 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.

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