American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Nvidia’s investment in SoundHound wasn’t all that significant after all

by admin March 1, 2025
March 1, 2025

SoundHound AI Inc (NASDAQ: SOUN) earnings this morning reminded investors that it’s more than just an AI firm that once received a vote of confidence from Nvidia Corp (NASDAQ: NVDA).

On Friday, the company based out of Santa Clara, CA said its revenue more than doubled in the fourth quarter, leading to a 20% increase in its stock price.

SOUN also raised its guidance for the full year today, suggesting the future remains bright with or without the Nvidia investment.

For the year, SoundHound stock is still down close to 50%.

Why Nvidia investment wasn’t significant for SOUN anymore

SoundHound shares tanked nearly 30% on February 14 following Nvidia’s announcement that it’s no longer invested in the voice AI platform.

However, the price action may have been an overreaction on the investors’ part.

That’s because NVDA investment in SOUN was merely a financial one.

In the fourth quarter of 2023, when the AI darling first announced a stake in SoundHound, it was meaningful for the latter since it brought attention and credibility to its stock.  

But it didn’t eventually result in substantial direct support or partnership with Nvidia, which means operationally, the investment hardly bore any benefit for SoundHound.

The Nasdaq-listed firm continues to do well without Nvidia, and the demand for its products remains just as strong, indicating that the NVDA-driven sell-off in SoundHound stock may be an opportunity to buy.

SoundHound continues to attract solid demand from QSR

SoundHound now sees its revenue falling between $157 million and $177 million in 2025.

Its previous guidance was for $175 million at the top end of the range.

The voice AI platform continues to attract solid demand from quick-service restaurants.

It has even teamed up with a few notable names recently, including Peet’s Coffee and Burger King UK.

“The pace of adoption of our customer service in restaurants is increasing,” the company’s chief executive Keyvan Mohajer told investors on the earnings call, adding SOUN is “already the largest provider with dozens of prominent brands and well over 10,000 locations.”

SoundHound stock does not, however, pay a dividend at writing.

What else could drive SoundHound stock price up in 2025?

SoundHound sees the DeepSeek development as a tailwind since an increase in AI models could lower its costs.

The artificial intelligence company is committed to bringing its technology “on the edge”, which could help unlock significant further upside in its share price as well.  

SOUN chief executive Keyvan Mohajer is also bullish on the company’s in-vehicle voice assistant that “delivers new leads, and creates a monetizable moment for SoundHound with revenue sharing opportunities for carmakers.”

Despite recent turmoil, Wall Street remains bullish on SoundHound shares.

The consensus rating currently sits at “overweight” with analysts calling for upside to over $15 on average in the AI stock.

The post Nvidia’s investment in SoundHound wasn’t all that significant after all appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Microsoft is shutting down Skype: how Zoom and Microsoft’s own Teams sounded its death knell
next post
Big Food’s big challenge of keeping up with evolving consumer diets has Wall Street wary

Related Posts

White House promotes Kirby to expanded role to...

February 13, 2024

DOJ settles with former FBI officials over release...

July 28, 2024

US senators make new push to make daylight...

March 10, 2024

France’s €109 billion AI investment: Can it compete...

February 10, 2025

Top five Nifty Smallcap gainers of 2024: what...

December 25, 2024

Philippine mayor accused of acting as Chinese asset...

May 20, 2024

Blinken, guitar in hand, sings ‘Rockin’ in the...

May 16, 2024

is India missing its demographic dividend? Slow growth...

December 1, 2024

Reporter’s Notebook: Aboard the USS Dwight D Eisenhower...

February 25, 2024

AI security infrastructure needed after ‘malicious’ foreign actors...

February 18, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved