SoundHound AI (NASDAQ: SOUND) Share prices have soared over the past trading week. The company’s stock price rose 61.2% from last week’s market close, according to data from S&P Global Market Intelligence.
SoundHound AI stock posted big gains this week after the company hosted an investor presentation and announced that a new restaurant partner had rolled out its software. The company’s stock price also gained ground thanks to macroeconomic and political developments and momentum from meme stocks.
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SoundHound AI Chief Financial Officer Nitesh Sharan attended the UBS Global Technology and AI conference on December 4. During his presentation at the conference, Sharan demonstrated and discussed the company’s conversational artificial intelligence (AI) software.
The next day, SoundHound announced that Torchy’s Tacos had adopted the company’s AI ordering and customer service technologies. The software has been rolled out to 130 Torchy’s Tacos locations and can handle 100% of incoming calls and take customer orders. While bringing the software to 130 new restaurant locations probably isn’t a big deal in the grand scheme of things, investors took it as an indication that the software could gain much broader adoption — and SoundHound’s stock skyrocketed on the news.
While there was some major business news that pushed SoundHound AI’s valuation higher this past week, the stock likely also benefited from the momentum of meme stocks. Investors have generally become more risk tolerant lately, and some are looking for explosive profits on short-term trades. Accordingly, meme stock trading has come back into fashion.
In addition to the meme stock momentum, SoundHound AI and other artificial intelligence stocks got a boost from Donald Trump’s announcement that he plans to appoint venture capitalist David Sacks as AI and crypto czar under his new administration. The news appears to support the idea that the new Trump administration will take steps to further the evolution of the artificial intelligence industry.
Macroeconomic news was also good for growth stocks last week. November jobs data showed an improvement in the labor market, and the Federal Reserve is expected to cut interest rates later this month.
