SoundHound AI Inc. (SOUN) shares jumped 5.07% in pre-market trading on Tuesday, extending a remarkable rally that saw the stock surge 326% in the fourth quarter of 2024. The pre-market surge reflects sustained bullish sentiment towards the AI company, fueled by its robust business growth and the broader enthusiasm surrounding AI and tech stocks.
SOUN has been rapidly expanding its footprint across multiple industries through strategic partnerships and acquisitions. In Q3 2024, the company reported an 89% year-over-year increase in revenue to $25.1 million. Recent deals, such as powering voice AI for Church's Texas Chicken's drive-through and Lucid Motor's in-vehicle AI assistant, highlight SOUN's diversification into sectors like automotive and quick-service restaurants.
The pre-market rally also coincides with a broader upswing in AI and tech stocks, particularly those linked to industry giants like Nvidia. Overnight trading saw shares of Nvidia-related companies, including Serve Robotics, Arbe Robotics, and Applied Digital Corp, surge on optimism surrounding the AI boom. As an AI-focused company, SOUN appears to be benefiting from this positive sentiment spilling over into the sector.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.