Artificial intelligence applications are conducting early trials in some fields, among which SoundHound AI's products seem to be providing some viable clues to the market.
SoundHound announced in a press release on Thursday that its AI intelligent ordering service has been launched at Torchys Tacos, a Mexican burrito chain restaurant, with all 130 chain restaurants offering this service to customers.
This news triggered a significant increase in SoundHound's valuation. As of the close of the US stock market on Thursday, the company's stock price surged 31.33%, and in the past month, it has risen nearly 150%, with the company's market value reaching $4.929 billion.
According to SoundHound, Torchys Taco customers can now use AI voice to place orders over the phone, asking questions about menus, business hours, special offers, and allergen information. Its AI model has completed menu training and can help merchants and customers manage customized orders. It can also handle multiple calls simultaneously, thereby improving the efficiency of order processing.
In addition, SoundHound revealed that its AI restaurant solution has been deployed in over 10000 locations worldwide, including telephone, drive in ordering systems, self-service terminals, and headphone ordering systems. Its telephone ordering technology has processed over 100 million customer interactions, equivalent to hundreds of millions of dollars in food orders.
Is it huge potential or huge foam?
According to a recent consumer study by SoundHound, nearly 80% of American regulars believe that voice AI technology will dominate ordering services in the near future. This trend means that voice AI systems like SoundHound may make a big splash in the automation of the catering industry.
This also makes investors more confident in SoundHound's future potential. Previously, SoundHound mainly provided services to five major clients including Honda, Chipotle, and Block, which accounted for as much as 90% of SoundHound's business, causing market concerns about the stability of the company's business under high concentration.
But in the latest disclosure, these five major companies have rapidly decreased their share of SoundHound's business to 33%, which means that SoundHound's products are being accepted by more and more companies, providing them with broader revenue and reducing business risks.
Analysts also pointed out that obtaining such a large number of customer orders in a short period of time also represents the company's leadership position in the field of AI applications. Considering that the future application market is expected to reach a scale of billions of dollars, SoundHound's current valuation can be even more optimistic.
However, there are also warnings that SoundHound's stock price trend is becoming "meme driven" as the stock price can sometimes suddenly fluctuate significantly without any relevant information.
These worriers warn that the partnership with Torchys Tacos is not enough to trigger a more than 30% increase in the stock, so SoundHound has some significant valuation deviations and may experience even greater price fluctuations in the short term.