Soundhound ai (Nasdaq: Soun) It has become one of the most important shares in Wall Street, as it rose about 170 % since the beginning of November 2024. However, it is outside its huge peaks, as it rose about 400 % at the end of December.
As Soundhound shares have decreased by more than 40 % of its highest level ever, many investors may wonder whether this stock can be prepared in another huge operation. Some may think of this stock a ticket To become a millionaire.
So, does this shares have the ability to do this? After all, the other artificial intelligence shares (AI) have already made many millions of investors.
It may seem to become a millionaire of choosing one shares as a long -standing dream for some people, but this is completely possible. If you invest $ 10,000 in Nafidia (Nasdaq: nvda) Arrows a decade ago, you will now have $ 2.55 million, as long as you hold on to them and never sold them. Is it possible that SoundHound has this type of upward trend? Let's take a look.
Soundhound AI revolves around the audio recognition and the use of this input to the artificial intelligence model. Most of the models of the Trucitomic intelligence that we have interacted with so far are used inputs. However, users must have access to a keyboard in order to work this. This is not always practical.
Some customers may prefer to speak to a voice (think about driving in a restaurant) or need to investigate AI's auxiliary while driving (even if the car is self -driving, do you really want a keyboard in the car?). This is where Soundhound technology comes, and some adult customers have already fell.
Soundhound program has already been combined Stelantis Vehicles in Europe and Japan. This is a huge cars brand, and if this technology becomes very successful, it is very likely that other car manufacturers will participate with Soundhound as well. Several restaurants have also made a partnership with SoundHound to publish their technology to integrate artificial intelligence into driving and communication online.
All this allowed Soundhound to develop a variety of revenue flow, as none of the sectors in its business (cars, restaurants, financial services, health care and insurance) constitute more than 25 % of the total. This is a major improvement, with 72 % of revenue from one customer in the automotive sector during the third quarter of last year (is supposed to be stellantis).
Soundhound also huge growth aspirations. The revenue is expected to be doubled in 2024, and doubled again in 2025, with preliminary sales directives of $ 165 million (compared to $ 83 million in 2024). This is a tremendous growth, as he sees great growth in revenue after this point.
The accumulation of the company's reservation describes the remaining value of the current contracts it signed. Although this is not guaranteed revenue, it gives investors an idea of the amount of growth they can expect to move forward. SoundHound now exceeds one billion dollars and is spread over a six -year period of time. These are powerful, expected revenues, and with increased use of technology increase, this accumulated number is likely to rise.
But is this enough to make you a millionaire?
First, we need to set a basic investment amount. We will use $ 10,000 because this is what I used in the example of NVIDIA above. To transfer $ 10,000 to a million dollars, the shares must rise 100 times. Currently, Soundhound is a company worth $ 5.4 billion, which means that it will be worth about $ 540 billion if it achieves this feat.
So, what are the companies that the threshold now appreciate? This would put Soundhound in the same scope of evaluation MasterCard (515 billion dollars) and Oracle (496 billion dollars). These are incredibly dominant companies that serve the entire world, so this may be an unrealistic expectation.
For more comparison, some software companies in the market now Salesforce (310 billion dollars) and Adobe (199 billion dollars). It seems that the current Soundhound revenue as a mistake about these companies, even if its strong growth 2025 is combined.
Therefore, is Soundhound a millionaire to make you a $ 10,000 investment? Maybe not. But this does not mean that it cannot be a good investment. It has a strong product display and deals with an important place in the integration of artificial intelligence throughout society. It has strong growth in the future, but there are still a lot of risks that stocks involve, as other companies can easily provide a sound recognition platform competed by Soundhound.
If you decide to invest in SoundHound, then understand There is a great danger, but if it succeeds, there is also a high reward.
Before buying stocks at Soundhound AI, think about this:
the Motley Adviser is a lie The analyst's team has just identified what they think 10 best stocks For investors to buy now … Soundhound Ai was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 850,946 dollars!
Now, it is worth noting Stock consultantAverage overall return 959 %-Suspestness in the market compared to 178 % For the S&P 500, do not miss the 10 best menu menu.
*The stock consultant dates back from February 7, 2025
Kethan Drury It has jobs in Adobe, MasterCard, NVIDIA and Salesforce. Motley Fool has positions in Adobe, MasterCard, Nvidia, Oracle and Salesforce. Motley Fool Stelantis recommends. Motley deception has Disclosure.
Is Soundhound AI Store your ticket to become a millionaire? It was originally published by Motley Fool