SoundHound AI (NASDAQ: SOUN) stock saw another day of explosive gains in Friday's trading. The conversational-AI company's share price closed the day up about 12.5%. While there wasn't any direct business news pushing SoundHound AI's stock higher today,

SoundHound AI's valuation is surging today following news that the company's AI ordering and customer service technologies are being rolled out at Torchy's Tacos. The stock is now up 157% over the last month.

In Q3, SoundHound's revenue soared by 89% year over year to a record $25 million. But acquisitions hit the company's profit margins. Its gross margin dropped to 49% compared to 73% in the prior-year period. Therefore, while revenue was skyrocketing, its gross profit was up a less impressive 26%. And its net loss actually widened.

SoundHound AI (NASDAQ:SOUN), a leading AI technology company focused on voice-enabled products and services, faces a simple but important question