The Soundhound artificial intelligence (AI) shares is ‘clearly’ a ‘pump and unload’ stock.

containing a hidden image carousel with the alt text “Soundhound AI stock is ‘obviously’ a ‘pump and dump’ stock – market watcher” has seen a significant rise in share value of 272% in 2024. This surge has led some analysts to label Soundhound AI as a “pump and dump stock.”

Riding the wave of artificial intelligence (AI) advancement, Soundhound AI is not the only company experiencing growth in this sector. Other AI-focused companies such as Nvidia, AMD, and Super Micro Computer are also benefiting from the investor enthusiasm surrounding AI technology.

Soundhound AI, which is based in Santa Clara, California, provides voice and audio AI solutions, including automatic speech recognition and text-to-speech services. The company’s mobile app uses Automatic Content Recognition (ACR) technology to identify songs, similar to the Shazam app, along with features like real-time lyrics and voice-activated music search.

Analysts at DA Davidson recently raised their price target for Soundhound AI, citing increased demand for the company’s AI solutions. Despite this positive outlook, some analysts have expressed concerns about the company’s forecasted earnings and revenue growth.

While Soundhound AI’s stock has surged in recent months, analysts at Navellier believe that the company’s high valuation and earnings forecast indicate potential risks for investors. They caution that the stock may be overvalued and at risk of a price correction in the near future.