SoundHound AI (SOUN 8.70%) stock is posting another day of big gains Monday. The artificial intelligence (AI) software specialist's share price was up 9.5% as of 3:20 p.m. ET. At the same point in the session, the S&P 500 and the Nasdaq Composite were each up 0.3%. The stock had been up as much as 11.2% earlier today.

While there doesn't appear to be any major new business-specific news for SoundHound AI, the company's valuation is getting a lift from excitement surrounding AI plays and bullish momentum for the broader market. Both the S&P 500 and the Nasdaq Composite have hit new record levels today, and artificial intelligence investments are playing a big role in the gains.

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SoundHound AI stock surges on broader artificial intelligence rally

After some sell-offs and volatility earlier in the year, the AI trade appears to be back on -- and many top players in the space have recently hit new valuation highs. SoundHound AI continues to trade at a substantial discount compared to its valuation peak, but its share price is climbing amid bullish momentum for the broader market and renewed excitement surrounding AI-related growth opportunities.

What's next for SoundHound AI?

With a market capitalization of roughly $4.3 billion, SoundHound AI is valued at approximately 27 times this year's expected sales. As of this writing, SoundHound AI stock has risen roughly 173% over the last year. On the other hand, the company's share price is still down roughly 56% from its valuation peak.

With its last quarterly report, revenue grew 151% year over year to reach $29.1 million. While the company's sales base is still relatively low, its revenue growth has actually been accelerating. Demand for the company's technologies appears to be quite strong and could support a continued rally for the stock.