• SoundHound AI, BigBear.ai are benefitting from meme stock momentum

• SoundHound's AI ordering and customer service software has just been rolled out at Torchy's Tacos

• BigBear.ai's share price has gotten a boost from a recent article suggesting the stock could be the next Palantir

BigBear.ai stock rocketed 7% higher in overnight trading while SoundHound AI jumped 6.7%. While today's explosive gains for AI stocks were pushed by good news related to these companies, there's a foundational element that could be playing an even greater role in the share price gains.

SoundHound AI, BigBear.ai were also fueled by meme stock momentum. Shares of SOUN, BBAI have frequently seen big shifts on little or no relevant news over the last few months.

New restaurant deal powers huge gains for SoundHound AI stock

SoundHound published a press release today announcing that its AI Smart Ordering service had gone live at Torchy's Tacos. The service has been adopted at all 130 of the company's restaurant locations. SoundHound's conversational AI software has been trained on the Torchy's menu and has the capacity to manage 100% of the restaurant's incoming calls and handle questions about menu items, specials, store hours, and allergen information. In turn, the utilization of the AI software will allow Torchy's staff to focus on food preparation and providing in-store service.

BigBear.ai rallies on continued meme stock momentum

On Dec. 2, The Economic Times published an article discussing Bigbear.ai and whether the stock had the potential to deliver multibagger returns comparable to recent gains posted by Palantir -- a leader in artificial intelligence (AI) technologies. While there wasn't any new information contained in the report, the write-up was enough to help spur big gains for BigBear.ai's share price.

In conjunction with expectations that next year could bring new rounds of cuts for interest rates and corporate taxes and a more lax regulatory climate, meme stocks have been posting explosive gains lately. BigBear.ai stock is now up roughly 82% over the last month.

Risks to concern

While the stocks could continue rocketing higher on meme-powered momentum, the recent gains raise some significant valuation concerns -- and there's a good chance the stocks will be highly volatile in the near term. SoundHound is up 85% in Nov. while BigBear.ai rose 44% last month.

Investors are on the hunt for the next big opportunity in the AI software space, and the announcement of good news will push the hot AI stars’ valuations above current levels.

On the other hand, investors should probably move forward with the understanding that with the company's share price climbing thanks to meme stock momentum and excitement surrounding the broader AI software category, SoundHound AI, BigBear.ai look riskier on the heels of their recent rally.