What’s Fueling the Surge in SoundHound AI Stock? What’s Fueling the Surge in SoundHound AI Stock?

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By Ronald Tech

SoundHound AI Inc SOUN shares are soaring higher Thursday after AI giant Nvidia Corp NVDA revealed a stake in the company.

The Catalyst: SoundHound shares surged following the market close on Wednesday as traders reacted to a new 13-F filing from Nvidia, disclosing a 1.73 million share stake in SoundHound. The stock continued to trend higher on Thursday morning.

SoundHound’s connection to Nvidia dates back to 2017 when the company raised $75 million from a consortium, including Nvidia GPU Ventures. This investment aimed to expedite the adoption of SoundHound’s AI platform and facilitate the company’s international expansion.

Nvidia’s new regulatory filing has also propelled several other stocks on Thursday, including Arm Holdings, Recursion Pharmaceuticals, TuSimple Holdings, and Nano-X Imaging.

SoundHound AI last reported earnings on November 9. The company is expected to announce fourth-quarter results in the coming weeks, although an official date has not been disclosed.

Noteworthy: Remember ‘The Big Short’? In 2008, Michael Burry Bet Big On Chinese Giants, Supporting Google, Amazon’s AI Wave.

Predicting SOUN’s Stock Performance in 2024

Equity research offers valuable insights into a company’s fundamentals. Analysts devise financial models based on a company’s fundamentals and anticipated future earnings, culminating in a price target and stock recommendation.

SoundHound shares boast an average one-year price target of $4.50, signifying an anticipated upside of 13.96%.

Owing to differing assumptions, analysts can yield varying price targets and recommendations. SoundHound AI has not received any bearish recommendations, while two analysts have issued bullish ratings. HC Wainwright & Co. holds the street high price target of $5, whereas Ladenburg Thalmann’s street low is $4.

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SOUN’s Price Movement: SoundHound AI shares surged by 75.7% to $3.96 at the time of publication, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.