SoundHound stock's rally continued Thursday as the shares soared again as the voice AI company announced a deal with Torchy's Tacos -- the maker of "damn good tacos" -- to use its voice AI technology at all 130 of the restaurant's locations.
Santa Clara, Calif.-based SoundHound AI (SOUN) went public in 2022. The company provides AI voice tech to devices, business kiosks and call centers. It's also gaining traction in the restaurant industry, where SoundHound has also signed deals with Chipotle, Jersey Mike's, White Castle, Panda Express and Church's Texas Chicken.
Now, Torchy's Tacos is signing onto the trend. Torchy's describes itself as a "cult-favorite taco chain." It makes items like the "trailer park taco" and the "green chile queso."
"At Torchy's Tacos, we want our guests to have the best experience every time they engage with the brand," Thai Tran said in a written statement. Tran is Torchy's chief technology officer. "Partnering with SoundHound and using their Smart Ordering system, we are able to give guests another way to easily order our food."
SoundHound, which had been a sleepy stock, suddenly was in the Wall Street spotlight after AI giant Nvidia (NVDA) disclosed that its has taken an investment stake in the company.
"We think every product is going to benefit from voice AI," SoundHound Chief Executive Keyvan Mohajer told Investor's Business Daily in a recent interview. "And then every service also is going to benefit from an AI agent. Those are the two pillars of our business."
In afternoon trades, SoundHound stock surged more than 30% to 13.20. That put shares within striking distance of their intraday record high at 18.14, achieved in May 2022. SoundHound shares are also well above their 50-day and 200-day moving averages, MarketSurge chart analysis shows.
Shares have a perfect IBD Digital Relative Strength Rating of 99. This means SoundHound stock ranks in the leading 1% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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