Is Soundhound Ai Stock a purchase after its sale powered by Nvidia?

Soundhound ai‘s (Nasdaq: Soun) The shares soaring up to 883% last year. However, the stock of artificial intelligence (AI) is now down approximately 55% compared to its peak at the end of December.

You can blame some of this drop in the federal reserve. Investors were frightened when the Fed reported that there may be fewer interest rate drops than expected in 2025.

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However, another culprit was behind the Soundhound AI dive of almost 30% in recent days – Nvidia (Nasdaq: NVDA). Is the BATTU stock a purchase after its sale powered by NVIDIA?

How Nvidia provoked the last Soundhound swan dive

One of the best things that can happen for a small business is to mark a major investment in a large business. Many investors see that as a sign, they can be more confident in the small business.

Nvidia invested for the first time in Soundhound IA in 2017 as part of a funding cycle of $ 75 million. In February 2024, the huge Gpu Maker revealed in a regulatory deposit the size of his participation in Soundhound. This disclosure provided a large catalyst for the small stock of AI.

But the same hand that gives can also withdraw. Last week, Nvidia submitted another regulatory file which showed that he had completely left his participation in Soundhound IA. Just as investors considered the initial position of Nvidia in Soundhound as a vote of trust, they saw the sale of all its shares as a vote of non-confidence.

It could be too read between the lines, of course. Nvidia could have several reasons to sell all of its Soundhound IA actions which reflect no less optimism about the company. However, perceptions are important – and the sale of Soundhound by Nvidia was observed in a negative light.

The same investment premise as before

But there is a good case to do so that the investment premise for Soundhound IA is the same as it was before the regulatory disclosure of Nvidia. The company’s prospects always seem promising.

Soundhound ai sales are booming. In the third quarter of 2024, the company published its highest income with sales of 89% from one year to the next. Income was also more diverse than in the past, 12% from the biggest customer in Soundhound compared to 72% during the period of the previous year.

This diversification has also improved in all industries. In the third quarter of 2023, more than 90% of Soundhound’s revenues came from automotive customers. A year later, customers in the automotive, restaurant, financial services, health care and insurance sectors each contributed between 5% and 25% of total income.

There is always a massive opportunity for vocal AI technology with an estimated total estimated market of at least $ 140 billion. Even with the success of Soundhound so far with automotive customers and restaurants, it only scratches the surface of what could be done with the voice of AI in these areas.

However, the negative aspects of the investment premise for Soundhound IA also remain intact. The company is still not profitable. It continues to deal with significant competition, including several competitors with much deeper pockets. Soundhound’s assessment is also steep even after the recent decrease with the actions that are negotiated at nearly 50 times sales.

Is Soundhound Ai Stock a purchase?

So, is Soundhound Ai Stock a purchase after its sale powered by Nvidia? My answer is the same as before the news broke out of the sale by Nvidia of its Soundhound actions: perhaps.

I think investors opposed to risk should certainly avoid Soundhound AI. The stock is likely to be very volatile in the coming months (just as it has been in the past). It is possible that major competitors can ultimately prevail on Soundhound on the market.

On the other hand, Soundhound IA does a lot of good things to develop his business. The business opportunities are really excellent if they can do well and innovate competition. Aggressive investors who like high -risk and potentially high shares could find Soundhound has an intriguing choice – and which is available at a cheaper price now thanks to Nvidia.

Should you invest $ 1,000 in Soundhound IA at the moment?

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