SoundHound AI Inc (SOUN) stock surged 5.09% in intraday trading on Tuesday, riding the wave of enthusiasm for artificial intelligence stocks and ahead of its planned participation in a major industry event. The company, which specializes in voice AI solutions, is set to showcase its next-generation technologies at the upcoming National Restaurant Association Show.

The broader AI sector saw significant gains on Tuesday, with several AI-related stocks posting notable increases. This sector-wide momentum appears to have boosted investor confidence in SoundHound AI, contributing to its impressive price jump. The company's stock has been volatile in recent months, reflecting both the excitement and uncertainty surrounding the rapidly evolving AI industry.

SoundHound AI's upcoming presence at the National Restaurant Association Show from May 17-20 in Chicago is generating particular interest. The company plans to demonstrate its advanced voice AI solutions, including AI-powered drive-thru, phone, kiosk, and in-car ordering systems. These innovations are designed to enhance staff productivity and speed up service in the restaurant industry, potentially opening up new revenue streams for the company.

While SoundHound AI has shown tremendous revenue growth, with a 151% year-over-year increase in the first quarter, the company is still working to improve its gross margins and achieve profitability. Investors seem optimistic about the company's potential, especially given its recent moves to combine agentic and voice AI, which could prove to be a game-changer in the industry.

As AI continues to dominate tech sector discussions, companies like SoundHound AI that are at the forefront of voice recognition and AI integration are likely to remain in the spotlight. However, investors should remain cautious, as the stock's volatility and the company's current unprofitability indicate that significant challenges still lie ahead.