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In the dynamic world of tech investments, differing viewpoints are as common and healthy as software updates. When it comes to artificial intelligence (AI) company SoundHound AI (SOUN), two Fool.com tech aficionados have two very different takes.

Read on for an analysis of this under-the-radar tech company. It may just change your mind.

Image source: Getty Images.

Anders Bylund (Bull case): Remember the days when SoundHound was the app to use for identifying a catchy tune? I sure do. It was a two-dog race between SoundHound and Shazam back in the early smartphone era, long before digital assistants like Apple's Siri and the Google Assistant started doing the same job. This company has been developing leading-edge audio analysis tools since 2005.

Now, SoundHound AI has evolved from a personal music detective to a maestro of voice AI, orchestrating conversations between businesses and people with the help of artificial intelligence. The company may not dominate song-naming services anymore, but you and I have probably interacted with SoundHound's Houndify technology more recently without knowing it. The company's impressive client roster includes social media giant Snap, video-streaming veteran Netflix, and giant carmaker Stellantis, just to name a few.

This isn't just a trip down memory lane; it's a testament to SoundHound AI's journey from a cool app on smartphones to a powerful force behind the voice-controlled AI revolution. The company's vision of creating a conversational AI platform that exceeds human capabilities isn't just a lofty goal; it's a reality unfolding before us. Each interaction with clients like restaurant management expert Toastor in your favorite Stellantis vehicle, is a brush with SoundHound's advanced AI platform.

Each one of the household names listed above could have selected another voice recognition system from a larger, better-known tech giant. But they all selected Houndify, making the client list a mighty selling point in future deal negotiations. It's happening now, with two new partnerships announced in just the last two months. Houndify powers Netflix's reference system for set-top boxes, guiding consumer electronics partners to build products that connect to the streaming service. In Jeep and Dodge cars, SoundHound's software helps you control the infotainment system, navigation, and more. And yep, it's Houndify's generative AI voice you hear on the phone with restaurants using Toast's automated ordering system. This little company is going places.

And for investors, this is more than just betting on a company. SoundHound shareholders are part of a story that many of us have experienced passively for years. SoundHound AI, with its blend of nostalgia-worthy experience and cutting-edge technology, presents a unique investment narrative -- one where the past and future of AI innovation converge.

Jeremy Bowman (Bear case): 2023 has been the year of artificial intelligence on the stock market, and SoundHound AI is among the winners. That makes sense as AI is at the core of the company's speech recognition and voice-to-text capabilities.

Shares of SoundHound AI have nearly doubled this year on enthusiasm for AI stocks, and there are legitimate reasons to like the stock. The company reported 52% sequential revenue growth in its most recent quarter, and while it's still unprofitable, its losses are narrowing, showing it's taking steps to profitability. Its valuation is high, but not unreasonable at a price-to-sales ratio of 12.

The reason I'm taking a bearish position against the stock is that I don't think SoundHound can defend its turf against big tech companies over the long term. The company claims to have best-in-class voice AI technology and says it has 15-plus years of Voice AI data accumulation, but it's still a small company with just $13 million in revenue in the recent quarter, and growth has been uneven.

SoundHound also says it's operating in a $160 billion addressable market, but that seems to exaggerate the company's opportunity. On that large of a scale, the company would be competing against Apple's Siri, Google Assistant, and Amazon Alexa, which have all been developing voice recognition technology for at least a decade. Suppose SoundHound proves that there is a significant market opportunity and a profitable one. In that case, the company will likely face increasing competition from those deep-pocketed tech giants and specialists in individual sectors.

Looking at SoundHound from that perspective, its upside potential seems more limited. Investors can likely find better AI growth stocks elsewhere.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Alphabet and Netflix. Jeremy Bowman has positions in Netflix and Snap. The Motley Fool has positions in and recommends Alphabet, Apple, and Netflix. The Motley Fool recommends Stellantis and Toast. The Motley Fool has a disclosure policy.

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SoundHound AI Stock: Bull vs. Bear - The Motley Fool