Daily Stock Pick for June 21, 2023

Imagine this.

You get into your car, start driving, and while still keeping both hands on the steering wheel – tell it where you want to go.

And not only does the navigation system understand you perfectly – it starts suggesting alternate routes and even alternate activities!

Your car’s interface is now truly intelligent – and it’s all thanks to the product of today’s daily stock pick.

Thanks to AI tailwinds, this stock has now tripled in 2023 – and has been flying over the past couple weeks.

But it’s still trading below its all-time highs – and considering it just added generative AI to its product, it could still have plenty of room to run.

SoundHound AI, Inc. (SOUN)

SoundHound went public at the end of April via a SPAC merger. It soon hit a high of nearly $15, 

When it went public, it had a valuation of $2.1 billion – with its share price hitting a high of $14.98 soon after (a market cap of about $3.1 billion).

Even with the stock tripling in 2023, it’s still trading below $4.00 – far below its all-time high of nearly $13.50

And yet, the company has only added generative AI capabilities to its voice platform back in February 2023 – plus inked partnerships with names like Hyundai, Chrysler, Mercedes, Honda, KIA, and more.

Its earnings have also been accelerating, with FY22 revenue showing a 47% growth and 1Q23 revenue showing a 46% growth – before fully integrating generative AI.

To be clear, SoundHound is still an unprofitable company. But when we compare the prospects of the company back when its price was at an all-time high – then look at how far the company has progressed and where its price stands now – I believe the price still has room to run.

After all, the AI train is only just leaving the station.

To your wealth,
Felix @ Ace of Investing