SoundHound AI stock surged Tuesday as the maker of conversational voice AI technology advances its agentic artificial intelligence capabilities.
Zacks Equity Research analysts on Tuesday spotlighted SoundHound stock as one to watch.
"SoundHound AI anticipates 2025 revenues of $157 million to $177 million, up from last year's $84.7 million," Zacks said. "SoundHound AI's 2024 booking backlog of $1.2 billion suggests strong long-term revenue growth, alongside a total addressable market (TAM) of $140 billion, indicating potential for further expansion."
The conversational AI market is projected to grow from $17.05 billion in 2025 to $49.8 billion by 2031, according to MarketsandMarkets.
"Rising customer demand for quick service and labor shortages are driving restaurants to adopt voice automation, benefiting SoundHound AI," which counts Casey's General Stores and Chipotle Mexican Grill among its clients, Zacks said.
On the stock market today, SoundHound stock rose 11.7% to close at 12.71. Earlier in the session, it was up 17.8% to 13.41.
In recent months, SoundHound has been promoting its AI assistants for restaurant ordering and health-care customer services.
SoundHound stock has an IBD Relative Strength Rating of 96 out of 99, according to IBD Stock Checkup. That means it has outperformed 96% of stocks over the last 52 weeks.
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