SoundHound's stock pops again en route to best two-day stretch since March

By Emily Bary

The company recently announced live voice-assistant integrations with carmakers in Europe

SoundHound AI Inc. shares are making big moves again as they look to clock their second consecutive double-digit gain.

Shares of the company, which makes speech-recognition products that use artificial intelligence, saw a frenzied performance earlier this year after a filing from Nvidia Corp. (NVDA) showed that the semiconductor company had an investment in SoundHound (SOUN).

See more: Nvidia discloses positions in SoundHound AI, Arm - and these other stocks

The stock saw 12 double-digit moves in any direction between mid-February - when that filing came out - and early May. The stock's performance had been less dramatic since then - until Wednesday, when SoundHound shares clocked a 22.5% gain.

They're up another 14% in Thursday morning action, which translates to a 39.6% two-day gain. That would be the stock's largest over two days since they advanced 44.7% over the stretch that ended March 13, according to Dow Jones Market Data.

The company announced Wednesday that its voice assistant, which integrates with OpenAI's ChatGPT, was "live and in production in Peugeot, Opel, and Vauxhall vehicle brands across 11 European markets." SoundHound has plans to expand to six other markets by the end of the month.

Through the integration, drivers and passengers can ask contextual questions and give more complex commands. Examples from SoundHound's press release include: "What's the most scenic route from Paris to Bordeaux" and "Roll down the windows and navigate me there."

"Our collaboration with Stellantis has put both companies right at the cutting edge of innovation in the automotive sector, bringing the driver experience into a new and exciting era," SoundHound Chief Operating Officer Michael Zagorsek said in the release.

The company has a nearly $2 billion market capitalization, though losses were greater than revenue in SoundHound's last-reported quarter. SoundHound had a first-quarter net loss of $19.9 million, while revenue was $11.6 million.

Read: SoundHound's losses exceed revenue, but stock gains as voice-AI demand picks up

-Emily Bary

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07-11-24 1109ET

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