In a surprising move, Nvidia (NASDAQ:NVDA), a prominent player in the world of AI hardware, has made a significant investment in SoundHound AI (NASDAQ:SOUN). While this development has garnered attention, my analysis leads me to remain neutral on SOUN stock and withhold any immediate investment.
SoundHound AI is known for its voice AI platforms that enable businesses to provide interactive conversational experiences to their customers. It recently made waves by introducing a conversational AI product tailored specifically for restaurant employees. This innovative approach has caught the attention of industry players, and the news of Nvidia’s investment has only intensified the spotlight on SoundHound AI.
The details of Nvidia’s investment are worth noting. As per a 13-F filing, Nvidia purchased approximately 1.73 million shares of SoundHound AI. At the time of the filing, these shares were valued at nearly $3.67 million. This move further solidifies Nvidia’s position as a leading player in the AI market in 2024.
While SoundHound AI has made strides in narrowing its losses, it is still grappling with profitability. The company managed to reduce its quarterly loss from $30.061 million in the third quarter of 2022 to $20.197 million in the same quarter of 2023. Despite this progress, the recent surge in SOUN stock, which rose by 66.7% in a single day, may deter cautious investors from entering the market.
Analysts tracking SOUN stock, however, remain bullish. Three unanimous Buy ratings in the past three months have earned SoundHound AI a Strong Buy rating on TipRanks. The average price target of $4.67 suggests a potential upside of 24.2%.
For those contemplating investment decisions, it may be prudent to consider the recommendations of Michael Latimore from Northland Securities. Latimore has exhibited remarkable accuracy in his one-year timeframe predictions, achieving an average return of 12.64% per rating and a success rate of 71%.
While the partnership with Nvidia represents a significant milestone for SoundHound AI, it is crucial to exercise caution. The recent surge in stock price has introduced an element of frenzy to the market. Prudent investors may find it beneficial to wait for the market to stabilize before considering an investment in SOUN stock.
Disclosure: The author does not hold any position in the aforementioned stocks at the time of writing.
FAQ Section:
1. Who is SoundHound AI?
SoundHound AI is a company known for its voice AI platforms that enable businesses to provide interactive conversational experiences to their customers. They have recently introduced a conversational AI product tailored specifically for restaurant employees.
2. What is the significance of Nvidia’s investment in SoundHound AI?
Nvidia, a prominent player in the world of AI hardware, has made a significant investment in SoundHound AI. This investment further solidifies Nvidia’s position as a leading player in the AI market. It has also intensified the spotlight on SoundHound AI and attracted attention from industry players.
3. How much did Nvidia invest in SoundHound AI?
According to a 13-F filing, Nvidia purchased approximately 1.73 million shares of SoundHound AI, valued at nearly $3.67 million at the time of the filing.
4. Is SoundHound AI profitable?
SoundHound AI is still grappling with profitability. While it has made progress in reducing its quarterly losses, it has not yet achieved profitability.
5. What has been the recent performance of SOUN stock?
SOUN stock recently experienced a surge, rising by 66.7% in a single day. However, this significant increase may deter cautious investors from entering the market.
6. What do analysts say about SOUN stock?
Analysts tracking SOUN stock remain bullish; three unanimous Buy ratings in the past three months have earned SoundHound AI a Strong Buy rating on TipRanks. The average price target of $4.67 suggests a potential upside of 24.2%.
7. Who is Michael Latimore and what are his predictions?
Michael Latimore from Northland Securities is an analyst known for his accurate one-year timeframe predictions. He has achieved an average return of 12.64% per rating and a success rate of 71%.
Key Terms:
– AI: Artificial Intelligence, the simulation of human intelligence in machines that are programmed to think and learn like humans.
– 13-F filing: A filing with the U.S. Securities and Exchange Commission (SEC) that must be submitted by institutional investment managers with at least $100 million in assets under management.
– Nasdaq: A global electronic marketplace for buying and selling securities, particularly common stocks and securities.
– Stock: Shares representing ownership in a corporation.
Suggested Related Links:
– Nvidia Official Website
– SoundHound AI Official Website
– TipRanks Official Website
The source of the article is from the blog zaman.co.at