SoundHound (NASDAQ: SOUN) stock price has blasted higher in 2024, helped by the recent investments by Nvidia and the strong demand for AI assets. It was trading at $8 on Tuesday, meaning that it has jumped by over 226% in 2024, beating the Nasdaq 100 index. 

SoundHound stock price has done well in the past few weeks as demand for AI jumped. The company will, therefore, be in the spotlight in the coming days as Nvidia hosts its GTC Conference at the SAP Center in the US.

The keynote speaker will be Jensen Huang, the founder of Nvidia, who is worth over $70 billion. Some of the other top speakers will be from companies like Character.ai, Inceptive, Cohere, and OpenAI. Therefore, there is a likelihood that SoundHound and other stocks will jump towards the event.

Still, the biggest concern among investors is whether SoundHound is an AI bubble stock because of its high valuation. The company has a market cap of over $1.85 billion, which is substantial based on its financial performance.

SoundHound has been growing. Data shows that its annual revenue stood at over $7.7 million in 2019 and $45.9 million in 2023. It has also been losing substantial sums of money. Its net loss in 2019 stood at $64.5 million and has risen to over $88.9 million in 2023.

The most recent results came short of expectations. Its Q4 revenue was $17.1 million, a 80% increase from the same period in 2022. It missed estimates by about $600k. But the 80% revenue growth is still a bright spot.

The company also has a strong backlog. It ended the quarter with over $341 million in backlog, with the automotive segment being the biggest one. It has partnerships with the likes of Stellantis, the maker of Fiat, Maserati, and Alfa Romeo.

SoundHound’s AI tools are also seeing more usage in the restaurant and hotel industry. Its AI solutions are used to simplify communication and also help these companies slash costs. In this case, the technology has been added in over 10,000 merchant locations and the company is in talks with over 100k more.

Therefore, SoundHound believers hope that this increased adoption will lead to faster revenue growth and help it bridge the valuation gap. In this case, the company hopes that its revenue will jump to between $63 million and $77 million this year followed by $100 million in 2025.

SOUND chart by TradingView

Turning to the daily chart, we see that the SOUN stock made a big gap on February 14th and it has never looked back. It has now jumped from the year-to-date low of $1.50 and peaked at $8. Most recently, the stock retreated and retested the important support at $5.11, which was its highest point in June last year.

SoundHound stock has remained above all moving averages. It will also publish its next financial results in the next few months. As such, with Nvidia’s GTC event coming up, there is a likelihood that the shares will continue rising as buyers target the resistance at $10. This view will be confirmed if the stock moves above the YTD high of near $8.

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