Benzinga - by Surbhi Jain, .
SoundHound AI (NASDAQ:SOUN) stock was up over 21% in pre-market trading on Tuesday. The stock has risen over 83% in the past year, though much of the surge can be attributed to recent events, such Nvidia‘s (NASDAQ:NVDA) investment in the company.
SoundHound AI is known for its expertise in voice-enabled artificial intelligence and music recognition technology. The company has developed a popular voice-activated virtual assistant called “Houndify,” which allows developers to integrate voice-enabled AI capabilities into their applications and devices.
SoundHound AI’s technology is also widely recognized for its ability to identify songs and provide music-related information through voice commands, making it a notable player in the field of voice and audio-based AI applications.
Also Read: EXCLUSIVE: SoundHound’s AI Voice Technology Revolutionizes Restaurant, Automotive Industries
5 Catalysts Pushing SoundHound AI Stock Higher
- SoftBank Investment: In Q4 2023, SoftBank Group initiated an investment in SoundHound AI with a purchase of around 1.1 million shares, according to its 13F filing.
- Nvidia’s Strategic Investments & Ongoing Support: Nvidia, a leading AI chipmaker, disclosed investments in various AI-linked companies, including SoundHound AI. The announcement included a $3.7 million stake in SoundHound, further solidifying the company’s standing in the AI Revolution.
Nvidia’s initial investment in SoundHound dates back to 2017, participating in a $75 million funding round. Since then, it has acquired approximately 1.73 million shares, emphasizing Nvidia’s continued support and belief in SoundHound’s role in the evolving AI landscape.
- Positive Analyst Outlook: Wedbush Securities views Nvidia’s investment as a positive indicator, solidifying SoundHound’s brand within the AI landscape. Analysts believe this could mark the beginning of broader investments, with an Outperform rating and a $5 price target on SoundHound.
- Strategic Positioning: SoundHound’s strategic performance areas include autos, televisions, internet-connected devices, and AI voice customer solutions. Partnerships with companies like Stellantis and Hyundai showcase its strong presence, with added potential to venture into the AI chatbot market, especially with Nvidia’s backing.
- Northland Capital’s Endorsement: Northland Capital Markets maintains an Outperform rating and a $4.00 price target for SoundHound, considering it one of the top stock picks for 2024. The endorsement is underscored by Nvidia’s significant investment and SoundHound’s strategic positioning in the AI market.
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