With today’s explosive gains, SoundHound AI stock is up 703% in 2024.
SoundHound AI (SOUN 23.70%) stock is posting explosive gains in Friday’s trading. The conversational artificial intelligence (AI) company’s share price was up 24.5% as of 3:15 p.m. ET.
SoundHound AI stock is surging today after the company was named a leader in the 2024 Frost Radar Report from Frost & Sullivan. Specifically, the company’s Amelia platform was named a leader in conversational AI for enterprise healthcare.
SoundHound AI surges as Frost & Sullivan shouts out healthcare opportunity
Frost & Sullivan published its 2024 Frost Radar report yesterday, and SoundHound AI’s share price is seeing huge bullish momentum thanks to positive coverage for the company’s Amelia platform in the report. Frost & Sullivan sees the market for conversational AI in healthcare growing to reach $2.34 billion in annual sales by the end of 2027. The company’s report suggests this corner of the market will grow at a compound annual growth rate (CAGR) of 17.2% through the end of that forecast period.
Frost & Sullivan lead industry analyst Nitin Manocha said SoundHound’s Amelia platform stands out for its performance and innovation pipeline. The company acquired Amelia in September for $80 million, and Manocha believes the integration of SoundHound’s voice AI capabilities into Amelia’s platform for enterprises opens the door for huge growth opportunities.
What comes next for SoundHound AI?
Thus far, SoundHound AI’s core sources of business have been in categories that include restaurants and automotive. Along those lines, the company announced on Dec. 11 that it was bringing its AI ordering and customer service software to Church’s Texas Chicken restaurants. Last week, the conversational AI specialist announced it was bringing its software to Torchy’s Tacos.
Frost & Sullivan’s positive coverage of SoundHound AI’s position in the enterprise healthcare market highlights a major new growth opportunity for the company. The business is still in the very early stages of tapping into potential growth in the category, and it’s possible that it could rapidly become a major performance driver.
Recent contract wins and coverage of emerging opportunities have helped power an incredible bull run for the company. Its share price is now up 703% across this year’s trading, and the business is undeniably seeing some encouraging adoption momentum.
On the other hand, big gains for the stock mean the company is now valued at roughly 75 times this year’s expected sales. With such a highly growth-dependent valuation, investors should understand that SoundHound AI stock’s explosive potential also comes with a high level of risk.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
