What's Going On With SoundHound AI Stock?

SoundHound AI Inc SOUN shares are ripping higher Thursday after AI darling Nvidia Corp NVDA reported a stake in the company.

What Happened: SoundHound shares began surging shortly after the market close on Wednesday as traders circled a new 13-F filing from Nvidia in which the company disclosed a 1.73 million share stake in SoundHound. The stock has continued to trend higher Thursday morning.

SoundHound’s ties to Nvidia date back to 2017 when the company raised $75 million from a consortium of investors including Nvidia GPU Ventures. The investment was aimed at accelerating the adoption of SoundHound's AI platform and helping the company expand into international markets.

Several other stocks are getting a boost Thursday from Nvidia’s new regulatory filing. The chipmaker’s other investments include Arm Holdings, Recursion Pharmaceuticals, TuSimple Holdings and Nano-X Imaging.

SoundHound AI last reported earnings on Nov. 9. The company is due to report fourth-quarter results in the coming weeks, but an official date has not been announced.

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SOUN Stock Prediction 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of SoundHound have an average one-year price target of $4.50, representing an expected upside of 13.96%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on SoundHound AI, while two analysts have bullish ratings. The street high price target from HC Wainwright & Co. is $5, while the street low from Ladenburg Thalmann is $4.

SOUN Price Action: SoundHound AI shares were up 75.7% at $3.96 at the time of publication, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.