Soundhound aiwith (Nasdaq: Soun) The shares suddenly jumped as many as 883% last year. However, artificial intelligence supplies (AI) are now approximately 55% of their peak in late December.
You can blame part of this fall for federal reserves. Investors were scared when the FED signaled that there could be less decreasing interest rates than expected in 2025. This caused a decrease in many high -growth stocks, including Soundhound AI.
However, another culprit was lagging behind Soundhound Ai -Ow of nearly 30% of the last days – Nvidia(NASDAQ: NVDA). Did she bought the beaten AI shares after a sale on NVIDIA?
One of the best things that can happen for a small company is to achieve a big investment from a large company. Many investors see that as a sign they can be safer in a small business.
Nvidia first invested in Soundhound AI in 2017 as part of a $ 75 million funding circle. In February 2024. A huge GPU Maker revealed in a regulatory application how big his stake was in the sound direction. This detection was provided by a large catalyst of small AI stock.
But the same hand it gives can also take away. Last week, Nvidia filed another regulatory application that showed that it had fully made its share in Soundhound AI. Just as investors looked at the starting position of Nvidia Soundhound as a vote of trust, they considered the sale of all his shares by vote without trust.
Of course, that could read between lines. Nvidia could have several reasons to sell all her shares of AI shares that do not reflect less optimism about the company. However, perception is important – and Nvidia sales Soundhound has been seen in a negative light.
But it should be done a good case that the assumption of investment for Soundhound AI is the same as before the regulatory detection of Nvidi. The outcomes of the company still look like they promise.
Soulndhound sale Ai flourished. In the third quarter of 2024. The company has reported its greatest revenue ever, and sales have jumped 89% of the year. The income was also more diverse than in the past, and 12% came from the largest Soundhound buyer compared to 72% in the previous year.
This diversification has also improved in industries. In Q3 2023, over 90% of Soundhound revenue came from car customers. A year later, customers in the car sector, restaurants, financial services, health care and insurance contributed between 5% and 25% of total revenue.
There is still a huge opportunity for voice AI technology with an estimated total addressable market of at least $ 140 billion. Even with the success of Soundhound so far with cars and restaurants, only scratching the surface of what could be done with voice AI in those areas.
However, negative aspects of investment in Soundhound AI also remain intact. The company is still not profitable. He continues to face significant competition, including several rivals with much deeper pockets. The Soundhound estimate is also steep even after a recent fall with stocks that are traded almost 50 times by sale.
So, is the Soundhound AI shares buy after a sale on Nvidia? My answer is the same as before the news broke on Nvidia’s sale of her Soundhound shares: maybe.
I think investors prone to risk should definitely avoid Soundhound AI. Inventories will be very unstable in the coming months (just as it has been in the past). It is possible that big competitors could eventually overcome the Soundhound on the market.
On the other hand, Soundhound AI does a lot of correct things to grow its business. The opportunities of the company are truly great if it can be well done and the competition. Aggressive investors who like high-risky, potentially high prizes could find intriguing selection-and-available choice at a cheaper price now thanks to Nvidia.
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Keith Speiights There is no position in any of the shares mentioned. Motley Fool has positions and recommends Nvidia. Motley Fool has disclosure rules.
