SoundHound AI Stock (SOUN) Making New Highs on Huge Volume Spike

SoundHound AI's stock (NASDAQ: SOUN) is coming off the back of a week that has seen gains of 63.33%, and new 52 week highs up above $15. The stock has certainly gained a huge amount of attention, with daily volumes spiking significantly above the average range. The week ended off with Friday's session 218.9 million shares changing hands versus the ADV of 35.78 million a continuation of what has been a pattern over the previous few days that had also seen higher than average volume (85.9M, 195.5M).

These levels reflect the highest volume days since the beginning of 2024, when the stock first came to the attention of many, with a run from under $2 to a high of $10 as you can see on the below chart. On a year- to-date basis, SOUN has gained 621.63%, and stands out as a huge outperformer on the Nasdaq.

Primarily known for its AI-driven voice assistants, the company is making significant strides in the Quick Service Restaurant (QSR) sector. SoundHound AI's strategic involvement in emerging markets and collaborations with top industry players position it uniquely in the AI landscape.

One of the company's notable achievements is its partnership with seven out of the top 20 global QSR brands, including prominent names like Chipotle and Five Guys. This establishes SoundHound AI as a leading entity in the AI-driven voice assistant market and underscores its potential in revolutionizing customer service in fast-food chains.

A significant driver of SoundHound AI's current momentum is the burgeoning food automation market, which is anticipated to reach $14 billion by 2024. This rapidly expanding sector reflects increasing interest and investment in technology solutions that enhance operational efficiency and customer experience in the food industry. SoundHound AI's technological offerings align neatly with these market trends, indicating a strong growth trajectory.

Beyond the QSR sector, SoundHound AI is broadening its horizons by venturing into finance and healthcare. Collaborations with technology giants like Nvidia suggest innovative projects that aim to reduce dependency on cloud solutions, potentially cutting costs and increasing operational efficiency for their partners and clients.

Despite the promising outlook, potential investors are cautioned about the inherent risks associated with all stocks, but particularly some of those mid run. The stock has previously taken a huge pullback after a big runup early this year, and whilst the circumstances now may be very different, history warrants some caution. Discounting the early post IPO excitement, this is one that still moves with a wide range when volume spikes, so keep your risk tolerance in mind when assessing suitability.