Why SoundHound AI Stock Is Skyrocketing Again Today
Why SoundHound AI Stock Is Skyrocketing Again Today
SoundHound AI (NASDAQ: SOUN) stock is posting explosive gains in Monday’s trading. The company’s share price was up 39.5% as of 2:40 p.m. ET, according to data from S&P Global Market Intelligence.
SoundHound AI is surging today thanks to an announcement that Nvidia (NASDAQ: NVDA) has formed a new partnership with other influential hardware and software players to advance artificial intelligence (AI) technologies in the telecommunications industry. Nvidia also announced that it was expanding its partnership with ServiceNow to advance telecom technologies.
The news could bode well for SoundHound’s voice-based assistant business. The audio software specialist’s stock is now up 180% across 2024’s trading.
An AI telecom alliance has Wall Street feeling bullish
At the Mobile World Congress expo today, it was announced that Nvidia had entered into a new partnership with Arm Holdings, Microsoft, Amazon, Softbank, Samsung, Ericsson, and Nokia to advance radio-access-network (RAN) and AI technologies in the telecommunications industry. The AI-RAN Alliance has been formed with the goal of paving the way for dramatic improvements in artificial intelligence and communications technologies.
This morning, Nvidia’s Senior Telecom Vice President Ronnie Vasishta said, “The AI-RAN Alliance brings together industry-shaping companies with expertise from silicon through software to deliver on the promise of ubiquitous AI and 6G.” Next-generation network technology could help power ongoing improvements for AI and bolster adoption of SoundHound’s services.
In addition to the unveiling of the AI-RAN Alliance, Nvidia also announced today that it’s deepening its partnership with ServiceNow. The two companies are rolling out generative-AI solutions that have been tailored for the telecom industry. While neither of Nvidia’s partnership announcements specifically mentioned SoundHound AI, investors are betting that they could wind up creating bullish catalysts for the audio-technology specialist.
With holdings disclosures that were made public last week, Nvidia revealed that it owned a stake in SoundHound AI. At the time of Nvidia’s filing, its SoundHound stock was worth roughly $3.7 million — but the disclosure soon sent the audio-software company’s share price skyrocketing.
What comes next for SoundHound AI?
SoundHound announced last week that its Iris voice-assistant technology would soon go into full production and launch with vehicles from Stellantis. SoundHound’s voice assistant is integrated with OpenAI’s ChatGPT technology and will be launching with Stellantis DS vehicles next month.
With new AI, RAN, and 6G technologies, the capabilities of SoundHound’s personal assistant could be significantly improved. Additionally, it’s possible that a wide range of new use cases could emerge. Voice-based operating systems have come into focus as a key interface for potential AI technologies.
SPONSORED:
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of February 26, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and ServiceNow. The Motley Fool recommends Stellantis and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.