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In 2023 and 2024, the rising tide has been lifting generative artificial intelligence boats. Nvidia (NASDAQ:NVDA) is an obvious beneficiary, but SoundHound AI (NASDAQ:SOUN) stock has caught peoples attention. Were giving SOUN stock a solid B grade.

You may have heard about Nvidias blowout fourth-quarter fiscal 2024 financial report. Nvidia isnt the only AI company with impressive revenue growth. For a well-rounded AI market exposure, invest in both Nvidia and SoundHound AI.

Nvidia is a kingmaker among AI-related businesses, so it speaks volumes if Nvidia invests in an AI company. Prospective shareholders should be interested to know that Nvidia invested $3.7 billion in SoundHound AI.

Why would Nvidia pour so much money into SoundHound AI? Perhaps Nvidias management envisions robust growth for the niche market that SoundHound AI serves.

SoundHound AI CEO Keyvan Mohajer recently explained in an interview that, while Nvidia creates the infrastructure for AI, SoundHound puts that infrastructure to good use. So the synergy is very clear.

This synergy means that theres room for both Nvidia and SoundHound AI to ride the gen-AI trend higher. SoundHound AIs specialization is AI-powered voice software, which businesses could use for customer service.

This could be a largely untapped, niche market. Mohajer stated that theres a $100 billion opportunity as SoundHound AIs products enable voice-AI functionality in televisions and other devices, and even automobiles.

Still, discerning investors dont just want to see opportunities. They also want to see improvement in the hard data. As it turns out, SoundHound AI has the data to back up the bull case for SOUN stock.

Much like Nvidia, SoundHound AI is a revenue grower. Specifically, in the fourth quarter of 2023, SoundHound AIs revenue increased 80% year over year to $17.1 million.

Furthermore, SoundHound AIs gross margin improved by 6 percentage points YOY to 77%. This capped off an impressive performance for the full year of 2023, in which SoundHound AIs gross margin increased by 6 percentage points YOY to 75%.

Were not currently giving SOUN stock an A grade, as theres still room for SoundHound AI to improve the companys financials. Certainly, we would like to see SoundHound AI post a profitable quarter and year.

Still, SoundHound AIs full-year 2023 net earnings loss of 40 cents per share is certainly better than the companys net loss of 74 cents per share from 2022.

SoundHound AI shares have rapidly gained value this year. The upward momentum could continue throughout 2024 as businesses discover the many use cases for gen-AI voice software.

This doesnt mean investors have to choose SoundHound AI or Nvidia. Its entirely possible to own both NVDA stock and SOUN stock, even if Nvidia is the better established company. Going forward, we encourage you to monitor SoundHound AIs progress as a notable, Nvidia-backed up-and-comer.

On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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SOUN Stock: The AI Voice Revolution Starts Here, and Nvidia Knows It - InvestorPlace