SoundHound AI (NASDAQ: SOUN) is a company that develops voice artificial intelligence (AI) technology. Despite its recent volatility, with a 52-week trading range between $1.50 and $10, the stock is currently trading at the lower end of this range. The company has been successful in inking deals that drive impressive revenue growth, particularly in the automotive and customer service industries. However, it faces significant competition from technology giants like Alphabet’s Google division.

SoundHound AI’s technology is not unique, but its brand- and data-neutral approach differentiates it from more restrictive competitors. The company has over 270 granted and pending patents, which protect its core technology. Despite this, the stock is highly speculative due to its high valuation and unprofitability. The company must prove it can dominate the competition while generating positive free cash flow to justify its high valuation.

Investors should consider the stock’s speculative nature and the risk of momentum stalling. While the company has a healthy $682 million backlog and is aggressively expanding into new fields, it must continue to show strong execution and customer retention to sustain growth. The stock’s high valuation and significant losses in recent quarters make it a high-risk investment, suitable only for aggressive investors willing to take on high uncertainty.