The AI-Powered Potential of SoundHound AI: A Must-See Investment Opportunity

SoundHound AI (NASDAQ: SOUN) is a company that creates technology to understand and naturally respond to human speech. The company began trading on the Nasdaq Stock Market on April 28, 2022, after merging with special purpose acquisition company (SPAC) Archimedes Tech SPAC Partners. Right from the start, it faced several challenges, such as going public in a weakening economy, investor worries over its high customer concentration, and using a complex business model that resulted in a lukewarm reception. The company also received mixed reviews from analysts, who questioned its growth prospects and profitability. The Stock started trading at $8.72 a share, and by Dec. 22, 2022, it was trading at an all-time low of 0.93, down 89%. However, despite the bad start, this company should be an excellent investment over the long term. Here's why.

According to SoundHound, the voice artificial intelligence (AI) transactions market, which uses voice recognition and natural language processing technologies to make voice-based transactions like payments, purchases, bookings, and reservations, is expected to grow to $160 billion by 2026. The company expects to grab a significant chunk of that market by fulfilling the increasing demand for an independent voice AI platform.

Big tech companies like Amazon, Alphabet, Apple, and Microsoft have their own voice AI offerings. Still, those offerings are mostly just additional features to their primary services. Instead of big tech companies enhancing their customers' products, their voice AI offerings can lead to their customers losing control over their branding, their users' experience, and data, making it feel like the big tech company is the one in charge. Consequently, brands that depend entirely on big tech lose the opportunity to innovate, distinguish themselves, and personalize their offerings. Sometimes, these big tech companies compete with the customers they are supposed to assist, making their voice interface offerings less attractive.

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Source Fool.com