As artificial intelligence (AI) adoption impacts every sector of the economy, SoundHound AI (SOUN 2.04%) is positioning itself to be the default choice for businesses looking for AI-powered voice recognition technology.
SoundHound's share price has been very volatile over the past few years, but some investors may feel they have missed the boat after the stock has soared 189% over the past year. Here's one important reason investors buying shares today are still early in this opportunity.
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SoundHound has a data edge over the competition
SoundHound is still a very small business that is reporting record financials every quarter. Analysts expect full-year revenue to grow 96% this year. While this growth is partly from the benefit of recent acquisitions adding to its revenue, SoundHound has a competitive advantage that will pave the way for growing demand for its technology.
NASDAQ: SOUN
Key Data Points
SoundHound has lots of data, which is essential for training AI. Its products are generating over 1 billion queries per month from user interactions, which can fuel improvements to its Polaris AI model. Earlier this year, management was claiming that its AI was marginally more accurate for voice recognition than models from OpenAI and Alphabet's Google.
To be successful in AI, you need quality data to train the models, and SoundHound might be reaching that tipping point to become unstoppable. SoundHound AI has 20 years' worth of data from user interactions with its products, and this edge should make it a long-term winner.
