SoundHound stock has been making waves in the market. On Thursday, its rally continued as shares soared once again. This comes after the voice AI company announced a significant deal with Torchy's Tacos, a renowned "damn good tacos" maker, to utilize its technology at all 130 of the restaurant's locations. The upward trend is quite remarkable, with shares showing consistent growth.

SoundHound's Tech Takes On The Restaurant Industry

SoundHound's Public Listing and Industry Reach

Santa Clara-based SoundHound AI (SOUN) went public in 2022. The company's AI voice technology is not only available on various devices but also in business kiosks and call centers. It has gained significant traction in the restaurant industry, having signed deals with renowned names like Chipotle, Jersey Mike's, White Castle, Panda Express, and Church's Texas Chicken. This wide range of partnerships showcases SoundHound's growing influence in the food service sector.The restaurant industry is constantly evolving, and SoundHound's technology is playing a crucial role in enhancing the customer experience. By integrating its voice AI into Torchy's Tacos, the company is providing an additional and convenient way for customers to order their favorite food. As Thai Tran, Torchy's chief technology officer, stated, "At Torchy's Tacos, we want our guests to have the best experience every time they engage with the brand. Partnering with SoundHound and using their Smart Ordering system, we are able to give guests another way to easily order our food."

SoundHound's Newfound Spotlight and Investor Interest

Previously a relatively unnoticed stock, SoundHound suddenly found itself in the spotlight on Wall Street after AI giant Nvidia (NVDA) disclosed its investment stake in the company. This move has sparked a lot of interest among investors. SoundHound Chief Executive Keyvan Mohajer emphasized in a recent interview with Investor's Business Daily that "we think every product is going to benefit from voice AI. And then every service also is going to benefit from an AI agent. Those are the two pillars of our business."The impact of this investment has been significant. At the close, SoundHound stock surged 31.3% to 13.33, bringing it close to its intraday record high of 18.14 achieved in May 2022. The stock's performance is also impressive when compared to its moving averages. It is about 117% ahead of its 50-day moving average and roughly 153% north of its 200-day line. However, with the stock showing such a rapid increase in a short period, it is advisable for investors to take partial profits at the current level.Traders can use various strategies to manage their positions. A downside reversal off highs can be a signal to trim holdings, followed by an undercut of the prior day's lows. Shareholders can also utilize the 10-day and 21-day moving averages as areas to lock in gains. Buying a stock that is wildly extended is risky, and savvy investors should wait for the stock to settle down and form a new buyable area, ideally a high-tight flag, which is a rare and bullish pattern that leading stocks tend to develop in strong markets.SoundHound stock has a perfect IBD Digital Relative Strength Rating of 99, indicating that it ranks in the leading 1% of all stocks in terms of 12-month performance. This further highlights its strength and potential in the market.Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.