2024 will be the year of the artificial intelligence (AI) boom. mega cap stocks like Nvidia and broadcom Thanks to my exposure to the AI industry, I have risen to incredible heights.
But the emerging AI sector doesn't just include giant chipmakers. This includes AI application developers. So let's dig into one such company. Soundhound AI (Thorn 15.38%)see why it's a name investors should know heading into 2025.
Image source: Getty Images.
What does SoundHound AI do?
SoundHound AI is a voice AI company. meaning We develop software that supports communication between humans and AI models. Most people are familiar with how this works. For example, if you have ever asked Amazon Questions about Alexa-enabled devices, your voice was used Trigger a response from your AI model.
However, one thing that makes SoundHound different is that, unlike Amazon's Alexa, appleSoundHound is a relatively small company focused on Siri and other big tech sponsored devices. just Voice AI. In other words, SoundHound's AI tools not linked For certain brands of hardware, such as Amazon Echo or Apple iPhone. Instead, SoundHound works with clients to integrate their voice-enabled AI capabilities. own Device.
So companies that are hesitant to share data or bring big technology into their operations (and by extension, their customers) may feel more at ease with a company like SoundHound. Additionally, SoundHound is also a leader in this field. that I support It supports 25 languages and can understand many accents in its language library.
In the end, the proof is in the pudding. Global brands such as Kia, hondaKrispy Kreme selected SoundHound's technology for its speed, accuracy, and ability to deliver human-like conversations in real time.
How is SoundHound AI doing financially?
Looking at the company's finances,It is important to note that SoundHound is in the very growth stage of its lifecycle. At this time, SoundHound needs to increase revenue by acquiring new clients and expanding relationships with existing clients.
In that respect, the company's performance is strong. Total revenue for the most recent quarter (ending September 30) increased to $25 million, an 89% increase from the same period last year.
Additionally, SoundHound's customer base has grown and its dependence on any particular customer has decreased.
For example, a year ago, the company's largest customer accounted for 72% of SoundHound's revenue. today, Its largest client offers 12% of total revenue. Similarly, automotive customers made up 90% of SoundHound's customer base a year ago, but now they account for less than 25%.
In summary, SoundHound AI is expanding its customer list as it expands into new industries such as healthcare, financial services, and medical services. insurance Meanwhile IMaintain existing partnerships in the restaurant and automotive sectors.
Should you buy SoundHound AI stock now?
Needless to say, SoundHound AI do not have stocks of all investors. The company is not yet profitable or generating positive free cash flow. That puts the stock out of reach for value investors and those looking for passive income from their investments.
But for growth-minded investors, SoundHound is a stock worth considering. Rapid growth in revenuecoupled with that Cutting-edge voice AI technology, This makes it an attractive option for investors looking for shares in fast-growing stocks within the AI sector.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Jake Lerch has held positions at Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
