What Happened?
Shares of voice AI recognition company SoundHound (NASDAQ:SOUN) fell 29.4% in the afternoon session after a 13F filing from Nvidia revealed that the chipmaker has sold its stake in the company. The market reaction suggests investors saw Nvidia's involvement as a vote of confidence, and its exit has introduced uncertainty.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.
What The Market Is Telling Us
SoundHound AI’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. But moves this big are rare even for SoundHound AI and indicate this news significantly impacted the market’s perception of the business.
SoundHound AI is down 46.9% since the beginning of the year, and at $10.70 per share, it is trading 55.9% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $1,426.
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