Why SoundHound AI (SOUN) Is Skyrocketing?

We recently published a list of 10 Stocks Jump on Impressive Earnings, Bullish Outlooks. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other stocks that have surged on impressive earnings and bullish outlooks.

The stock market ended firmer on Tuesday, with all of Wall Street’s main indices finishing in the green territory amid news that President Donald Trump temporarily delayed the imposition of tariffs against Canada and Mexico.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

On Tuesday, 10 companies under mixed sectors mirrored the broader market rally, fueled by impressive earnings results and optimistic business outlooks, among others. This article details the reasons behind the top gainers’ impressive performance.

To come up with Tuesday’s top gainers, we only considered those with $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, Inc. (NASDAQ:SOUN) extended its winning streak for the fourth day on Tuesday, with the company surging by 10.32 percent to finish at $15.71 each as investor sentiment was buoyed by news that China announced tariffs on select US imports in retaliation to President Donald Trump’s imposition of levies on Chinese goods.

Over the weekend, the US officially began imposing 10 percent taxes on Chinese goods, while a 25 percent levy on Canadian and Mexican goods was put on hold to make way for discussions between the US and the said countries.

Meanwhile, SoundHound AI (NASDAQ:SOUN) does business with China, and any trade war with the US could create a domino effect on its bottom line.

Overall, SOUN ranks 4th on our list of stocks that have surged on impressive earnings and bullish outlooks. 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 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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