SoundHound AI Inc (NASDAQ: SOUN) rallied another 30% to an all-time high of $13.12 today after Torchy’s Tacos said it has deployed its AI Smart Ordering across all 130 of its locations.
The fast-food chain is broadly known for its “Damn Good Tacos”.
Customers will now speak with AI to place orders at Torchy’s Tacos. SoundHound’s artificial intelligence technology will recognise their orders instantly and accurately as it has been trained on the entire menu of the taco chain, as per a press release on Thursday.
SoundHound stock has now grown by about 8 times since its low in early February.
SoundHound is an AI leader in restaurants
AI Smart Ordering will handle 100% of the incoming calls at Torchy’s Tacos.
It will take orders as well as answer common questions related to menu items, enabling the taco chain’s staff to focus entirely on providing excellent in-store service, the press release added.
The announcement from Torchy’s Tacos marks another milestone for SoundHound that dubs itself an AI leader in restaurants.
“As we continue to scale our AI-powered restaurant solutions, we have seen the impact they have in redefining how restaurants engage with their customers, adding an entirely new layer of convenience and efficiency,” James Hom – the chief product officer of SoundHound said today.
SoundHound stock is not currently a part of the S&P 500. If it had been, however, it would have been the top-performing name in 2024.
Why else is SOUN stock rallying today?
SoundHound share price has soared in recent weeks also because its executives are scheduled to participate in key UBS and Barclays conferences in December.
Both retail and institutional investors expect them to offer more colour on the company’s growth strategy as they speak at those conferences. They expect the management to set ambitious goals for the coming years as well.
SoundHound currently expects up to $85 million in revenue this year – a number it’s convinced will double to about $170 million in 2025.
SOUN shares do not currently pay a dividend, though.
Is it too late to invest in SoundHound stock?
SoundHound stock isn’t inexpensive to own at current levels by any stretch of the imagination.
Having said that, the voice AI technology company is growing at a fast clip and diversifying its revenue streams beyond automotive that may help it sustain or even increase its share price further.
Keyvan Mohajer said in a recent interview that SOUN’s goal is “to be in all the enterprise brands.”
That certainly creates ample room for it to grow in the coming years.
SoundHound AI Inc is fully committed to achieving profitability in 2025 that will help remove a significant overhang from its stock price as well. That’s part of the reason why Wall Street continues to rate it at “overweight”.
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