SoundHound AI has been one of the best-performing stocks on the market in the past year, registering stunning gains of 936% as of this writing, thanks to a combination of factors. SoundHound took off big time in February last year after it emerged that artificial intelligence (AI) giant Nvidia has a small stake in the company.

One of the biggest themes that helped drive the market last year was artificial intelligence (AI). Known as one of the U.S. government's most important vendors, Palantir Technologies (NASDAQ: PLTR) and its data gathering and analytics solutions have been used for such critical tasks as fighting terrorism and tracking COVID-19 cases.

Shares of SoundHound AI (SOUN) surged around 836% in 2024. The voice artificial intelligence (AI) technology leader benefitted from rising demand for its offerings and significant growth opportunities across key verticals such as automotive,

In SoundHound AI's conference call, management made the bold projection that its revenue would double in 2025. Additionally, it expects to reach EBITDA profitability by the end of 2025, which is a key milestone in achieving net income profitability. These projections ignited a massive run-up in SoundHound AI's stock, but is it still worth buying?

Speculators have started to make a clear move to start taking from some of the higher performance stocks including SoundHound AI. On Tuesday, shares of SoundHound dropped roughly