SoundHound AI Stock (NASDAQ: SOUN) Finding Strength Post Earnings. What Next?

After an increase of 134% in 2024, SoundHound AI stock (NASDAQ: SOUN), a leading innovator in voice artificial intelligence (AI) technology, have been a hot topic for traders looking for AI opportunities.

SoundHound AI's innovative chat AI voice assistant, which now integrates with ChatGPT, has gone live in various European markets. The technology is featured in Peugeot, Opel, and Vauxhall vehicle brands, reaching customers across 11 European nations with plans to expand to six additional markets by month's end. This rapid deployment underlines the pace at which SoundHound AI is advancing in the automotive industry.

In recent earnings, the company beat on both EPS and revenue consensus marks, but markets seemingly wanted more. EPS of -0.04 against an expectation of -0.08 is impressive, but it is not yet positive. Revenue of $13.46million for the quarter against expectations of $13.09million is also directionally bullish from the past reported level. Sitting on $201 million in cash, the firm has some runway to turn positive and markets liked the report, with the stock gaining 12% since Thursday's print.

Despite having hit highs over $10 in the past year, the trend over the past month before earnings had not been overly positive, with the stock having fallen a little over 20% in the last month of trading and re-entering a popular zone.

From a technical perspective, SoundHound shares are trading in a range which has provided some resistance on previous run ups in 2022/23 between $4-$5 as you can see on the 2 year weekly chart below. A break above or below this range that then firmly holds could be indicative of the next major directional move.

Analysts have been split on SoundHound's potential in the past, but this position seems to be improving.

The low mark of $5.50, against a high target $9.50 shows significant potential upside on analysts views, but it is also important to remember this is current expectations that can shift based on various internal triggers.

Back to operations, and Stellantis is another to decide on implementing SoundHound AI’s voice technology across additional car brands it owns in Europe in recent times. This decision marks a significant milestone in automotive AI integration and positions SoundHound AI firmly at the forefront in its domain.

This AI technology allows for a hands-free voice control experience, providing drivers with the capability to command various functions and obtain answers to questions on any topic while keeping their focus on driving. The seamless integration of SoundHound’s AI with vehicles aims to enhance the driving experience by combining convenience with advanced technology.

Michael Zagorsek, Chief Operating Officer of SoundHound AI, emphasised the success of the collaboration. By blending Stellantis's automotive expertise with SoundHound’s cutting-edge AI technology, both companies are charting a course that is redefining innovation in the automotive industry.

As vehicles become more connected and sophisticated, collaborations such as the one between SoundHound AI and other major manufactures may well become a standard, reflecting a future where technology and transportation evolve in unison.