SoundHound AI: A Play On Agentic AI (Rating Upgrade)

The Asian Investor
29.45K Followers

Summary

  • SoundHound AI is achieving rapid triple-digit revenue growth and expanding its customer base in a booming voice AI market.
  • Despite strong momentum, the company's GAAP profitability in Q1 was driven by a one-time gain and is unlikely to be sustained.
  • Gross margin pressures are a potential concern, but new partnerships, like the one with Allina Health, could open up the agentic AI market in the healthcare industry for SOUN.
  • I am upgrading shares to 'Hold' given the growth opportunity in the agentic AI market. However, shares are still expensive.

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ngkaki

SoundHound AI (NASDAQ:SOUN) is growing its top line at triple-digits while benefiting from heavy AI investments in an expanding addressable market. While SoundHound AI clearly has a ton of momentum due to the growing capabilities of voice AI technology

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