SoundHound AI (SOUN -3.23%) stock crashed after Nvidia (NVDA -0.12%) disclosed it sold all of its shares in the innovative growth stock.*Stock prices used were the afternoon prices of Feb. 17, 2025. The video was published on Feb. 19, 2025. ...

Nvidia's (NVDA -0.12%) graphics processors (GPUs) for the data center are the gold standard when it comes to developing artificial intelligence (AI). The company has added $3 trillion to its market capitalization over the last couple of years on the back of surging demand for those chips.Nvidia started spreading some of that wealth by investing in smaller AI stocks at the end of 2023. One of them is a leading developer of conversational AI software called SoundHound AI (SOUN -3.23%), and during 2024, its st ...

Core Viewpoint - SoundHound AI experienced a significant decline in stock price following Nvidia's complete divestment from the company, raising concerns about its future growth trajectory and investor sentiment [1][3]. Group 1: Stock Performance and Market Reaction - On February 14, 2025, SoundHound AI's stock fell by 28.1%, closing at $10.97 after Nvidia announced it had fully exited its stake in the company [1]. - Nvidia's previous stake of 1.71 million shares was valued at approximately $33.57 million at the end of 2024, based on a closing price of $19.43 on December 31 [3]. - The divestment from SoundHound AI, although small relative to Nvidia's $3.36 trillion market cap, sent a negative signal to the market, exacerbating concerns about SoundHound AI's growth [3]. Group 2: Nvidia's Investment Strategy - Nvidia's exit from SoundHound AI was part of a broader portfolio reshuffle, which included a 43.83% reduction in its stake in Arm Holdings and sales of shares in Serve Robotics and Nano X Imaging [4]. - New investments were made by Nvidia in WeRide Inc., a self-driving technology company, and Nebius Group N.V., an AI cloud computing firm [4]. Group 3: Future Outlook for SoundHound AI - Despite the stock decline, SoundHound AI trades at 26.8 times its projected sales for the year, indicating vulnerability to further market volatility [5]. - The company has demonstrated strong revenue growth and maintains a presence in the expanding voice AI market, particularly in healthcare, automotive, and smart devices [6]. - Analysts, including Wedbush's Daniel Ives, remain optimistic about SoundHound AI's long-term potential in the AI sector, labeling it a 'long-term winner in the AI revolution' [6].

Core Viewpoint - SoundHound AI has experienced significant stock volatility, rising approximately 170% since early November 2024 but remains down over 40% from its all-time high, leading to speculation about its potential for future growth [1] Company Overview - SoundHound AI specializes in audio recognition technology, differentiating itself from other generative AI models that primarily use text inputs [4] - The company has established partnerships with major clients, including Stellantis for automotive applications and various restaurants for AI integration in drive-thrus and online ordering [6] Revenue and Growth Potential - SoundHound has diversified its revenue streams across multiple sectors, including automotive, restaurants, financial services, healthcare, and insurance, with no single sector contributing more than 25% of total revenue [7] - The company anticipates significant revenue growth, projecting to double its revenue in 2024 and again in 2025, with preliminary guidance of $165 million in sales for 2025 compared to $83 million in 2024 [8] - SoundHound's booking backlog exceeds $1 billion, indicating strong projected revenue over the next six years as the use cases for its technology expand [9] Market Position and Valuation - To achieve a $1 million return from a $10,000 investment, SoundHound's market capitalization would need to reach approximately $540 billion, comparable to major companies like Mastercard and Oracle [10][11] - Current revenue levels are significantly lower than those of leading software companies such as Salesforce and Adobe, suggesting that SoundHound's growth trajectory may not align with the expectations set by these larger firms [12] Investment Considerations - While the potential for substantial returns exists, the likelihood of SoundHound making a $10,000 investment into $1 million is considered low, though it remains a viable investment opportunity due to its strong product offering and growth prospects in the AI integration space [13]

SoundHound AI (NASDAQ: SOUN) has been one of the big winners in the AI boom so far.Shares of the voice-activated AI specialist jumped by more than 800% last year, though it has cooled off a bit since. Investors have bet on the fast-growing company, which got its start as a music identification app like Shazam and now provides technology for automakers, restaurants, and other businesses to run voice-activated systems.SoundHound has been growing fast as well, with revenue up 89% in the third quarter to $25.1 ...

Core Points - SoundHound AI Inc's stock is experiencing a significant decline, dropping 23.1% to $11.72 after Nvidia dissolved its stake in the company [1] - There is a notable increase in options trading activity, with over 111,000 calls and 87,000 puts traded, indicating heightened market interest [1] - Bearish sentiment has been building, with short interest rising 27.3% in the last month, totaling 101.8 million shares sold short, which is 30.8% of the stock's float [2] - The current loss positions SoundHound AI for its largest single-session decline since June 2022, when it fell by 48.4% [3] - Despite a year-over-year gain of 193.9%, the stock is down 44.3% year-to-date and is trading at its lowest level since early December [3]

The stock market has a long history of creating wealth for investors. Companies that have a record of strong growth with expanding market potential for their products are the ones that can generate lasting wealth for shareholders.Here are two companies doing exciting things that could produce wealth-building returns.1. TeslaTesla (TSLA -3.01%) stock delivered incredible returns over the last 12 years. A $1,000 investment when the company was just launching the first in its lineup of Model S, 3, X, and Y veh ...

In the latest trading session, SoundHound AI, Inc. (SOUN) closed at $15.33, marking a -1.73% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.98%.Shares of the company have appreciated by 10.72% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.79% and the S&P 500's gain of 2.07%.Investors will be eagerly watching for the performance of Soun ...

Last year was a big one for stock splits. Major companies from Walmart to Chipotle Mexican Grill launched such operations, and players in the market's hottest growth industry -- artificial intelligence (AI) -- got in on the movement too. Leading chipmaker Nvidia, networking giant Broadcom, and equipment maker Super Micro Computer each announced and completed stock splits last year after their prices soared.And after each new stock split, investors' biggest question was: "Which market giant will be next to j ...

Many investors are worried about DeepSeek's latest breakthrough. Its Chinese developers claim to have trained a generative AI model that's on a par with many of the U.S. versions for under $6 million. This has caused many AI-related stocks to sell off, although some have remained strong.One stock that's still well off its all-time highs (although for reasons unassociated with DeepSeek) is SoundHound AI (SOUN -0.19%). It's down over 40% from its highest point, which could lead investors to believe that this ...