The Zacks Analyst Blog NVIDIA, SoundHound AI, Chipotle Mexican Grill and Alphabet

For Immediate ReleasesChicago, IL – January 17, 2025 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include, NVIDIA Corp. NVDA, SoundHound AI, Inc. SOUN, Chipotle Mexican Grill, Inc. CMG and Alphabet Inc. GOOGL.Here are highlights from Friday’s Analyst Blog:Is Under $20 SoundHound AI Stock the Next NVIDIA, and a Buy? NVIDIA Corp. has been around for decades. However, with the advent of artificial intelligence (AI), the company has witnessed explosive business growth. In the past year, NVDA stock has surged 149%, becoming one of the top S&P 500 performers of 2024.But it’s just not NVIDIA, SoundHound AI, Inc. has also been one of the market darlings, which saw its shares jump a whopping 663% over the past year. Does this mean the company that provides voice AI platforms is now the next big thing in the AI space, and worth a buy? Let’s see –2 Reasons to be Bullish on SOUN StockCooler-than-expected price pressures recently boosted SoundHound AI stock. According to the Bureau of Labor Statistics, the consumer price index increased 0.2% from the prior month in December, a deceleration from November’s month-over-month gain of 0.3%. Similarly, wholesale inflation unexpectedly eased last month due to decreased food and service costs. Waning inflation lessens the chance of interest rate hikes, benefiting SoundHound AI’s future cash flows.SoundHound AI’s products, anyhow, are widely accepted among several industries. SoundHound AI’s audio inputs are popular in generative AI models for drive-through ordering at quick-service restaurants like Chipotle Mexican Grill, Inc. Electric vehicle manufacturers and several auto brands are utilizing SoundHound AI’s voice AI. Lest we forget, SoundHound AI’s proprietary Polaris AI model has been adopted across various industries for its superior performance at a lower cost.This widespread adoption of SoundHound AI’s voice-enabled AI systems has led to an impressive 89% revenue growth in the third quarter. Management has also increased revenue guidance to almost $85 million for 2024 and nearly $175 million for 2025. In the prior quarter, the revenue guidance was $80 million for 2024 and $150 million for the current year.Is Investing in SOUN Stock Now Wise? Is it the Next NVIDIA?Despite SoundHound AI’s strong revenue growth and guidance, and favorable macro trends, its lofty valuations, trading at 35 times sales, raise concerns. Resource constraints, recent operating losses from heavy investments, and reliance solely on equity financing cast doubts on its sustainable growth.SoundHound AI is also facing stiff competition from major players like Alphabet Inc. The conversational AI platform of GOOGL was recently selected by Mercedes-Benz for its CLA cars and various other vehicles. Alphabet’s move in this space may have an impact on SoundHound AI’s gains in the future.Moreover, investors must determine whether SoundHound AI’s stupendous growth has been driven by fundamentals or inflated share prices driven by meme-style investors, indicating a potential bubble that could burst.So, investors should adopt a wait-and-watch approach before placing bets on the SOUN stock, and certainly not assume that it will be the next NVIDIA. After all, NVIDIA has successfully expanded its business, is financially strong, and offers long-term investment potential (read more: NVIDIA is the Top 2025 Magnificent 7 Stock Pick - Find Out Why).For now, SOUN stock has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report SoundHound AI, Inc. (SOUN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks