SoundHound Stock Soars 93% on Nvidia Stake Ahead of Key Earnings
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Shares of AI company SoundHound AI surged up to 93% this week after it was revealed Nvidia had taken a small stake in the company.
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Nvidia's investment gave investors more confidence in SoundHound's voice/audio recognition software and its potential in the growing AI market.
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Analysts were mixed - some see it as a logical move given SoundHound's capabilities, others say Nvidia's stake is small and not new.
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SoundHound now trades at a high valuation despite lack of profits and moderate revenue growth.
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Investors should be cautious as SoundHound reports Q4 earnings Thursday - the recent rally may be overly aggressive.