SoundHound AI Inc (SOUN) shares surged 10.05% on Tuesday, fueled by sustained bullish sentiment and investor enthusiasm surrounding the artificial intelligence sector. The rally extended an impressive run that saw the AI company's stock soar 326% in the fourth quarter of 2024.
SoundHound AI has been rapidly expanding its footprint across multiple industries through strategic partnerships and acquisitions. The company reported an 89% year-over-year increase in revenue to $25.1 million in the third quarter of 2024, driven by recent deals such as powering voice AI for Church's Texas Chicken's drive-through and Lucid Motor's in-vehicle AI assistant.
The pre-market surge also coincided with a broader upswing in AI and tech stocks, particularly those linked to industry giants like Nvidia. As an AI-focused company, SoundHound AI appears to be benefiting from the positive sentiment spilling over into the sector, fueled by optimism surrounding the AI boom and the potential for transformative applications.
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