Nvidia owns a stake in SoundHound AI stock. (You should too!)

Until a while ago, wall street journal reported that Nvidia (NASDAQ:NVDA) Holds approximately 1.7 million shares Soundhound AI (NASDAQ:early clouds). Indeed, Nvidia is rightly called the king of artificial intelligence. Therefore, investors should perform their due diligence on SoundHound AI before considering purchasing SOUN stock.

But before you hit the “buy” button, you need to understand why SoundHound AI is more than just a machine learning company. Once you get to know SoundHound AI and understand how the company is growing, you’ll almost certainly be ready to make a small investment.

SoundHound AI difference

There are many companies that specialize in artificial Intelligence, have you heard of it? conversational Intelligence? That’s the focus of SoundHound AI. Specifically, the company “offers voice AI solutions that enable businesses to deliver great conversational experiences to their customers.”

Keyvan Mohajer, co-founder and CEO of SoundHound AI, provided further explanation. Yahoo!finance. He said SoundHound AI is “enabling millions of devices…in cars and televisions…and we’re powering customer service, with 10,000 locations and 100,000 pipelines…” said.

Now, it makes a lot of sense for NVIDIA to invest in SOUN stock. Just as Nvidia is the undisputed champion of AI graphics processing units, SoundHound AI has established itself as a leader in AI-powered customer service products.

SoundHound AI recently introduced a “Voice Assistant with ChatGPT Integration” feature for cars. SoundHound AI is therefore a pioneer in a niche machine learning market with the potential for hyper-growth.

SoundHound AI’s incredible quarterly revenue

SoundHound AI may have “100,000 more in 10,000 locations” in the company’s pipeline, but will this translate into increased revenue? The answer is definitely yes, and SoundHound AI has the data points to prove it.

In the fourth quarter of 2023, SoundHound AI generated $17.1 million in revenue, an 80% year-over-year increase. This is a result that even the most reluctant investor must respect.

SoundHound AI appears to be closing the profitability gap. Specifically, the company reported a net income loss of 7 cents per share in the fourth quarter of 2023, compared to a net loss of 15 cents per share in the year-ago period.

Looking forward, SoundHound AI expects full-year 2024 revenue to be between $63 million and $77 million. The company predicts that its revenue will exceed $100 million in 2025. SoundHound AI’s 2023 revenue was $45.9 million, so this represents a rapid acceleration in revenue.

SOUN Stock: Becoming a niche AI ​​winner

Consider how successful Nvidia has been in the AI ​​GPU space. Will SoundHound AI be equally successful with voice AI? That’s a possibility worth considering.

In other words, SoundHound AI is a specialist in a niche AI ​​market that is likely to expand rapidly in the coming quarters. Additionally, SoundHound AI’s revenue growth is hard to argue with.

So it makes perfect sense that Nvidia has a stake in SoundHound AI. Therefore, investors should research the company thoroughly before buying some SOUN stock.

Publication date, David Mordell did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.