SoundHound AI Stock Drops Amid Nvidia Earnings Anticipation

SoundHound AI's stock is facing turbulence as it drops 8.8% amid concerns over Nvidia's upcoming earnings report. Investors are increasingly cautious about the impact Nvidia may have on AI stocks, including SoundHound.

Date: 24-02-2025

AI Rating: 4

Overview of the Situation
SoundHound AI's stock has fallen sharply, down 8.8%, driven by a broader pullback in tech stocks as investors await Nvidia's earnings report.

As Nvidia is a significant player in the AI sector and previously invested in SoundHound, its performance may influence investor sentiment towards SoundHound AI. Nvidia's 13F filing, revealing it sold all its shares of SoundHound, has raised concerns about competitive pressures for SoundHound from Nvidia's potential new offerings.

SoundHound AI has been experiencing high volatility in its stock price, now trading at about 23 times its expected sales for the year. The report indicates that Nvidia's earnings and guidance may create significant valuation shifts across the AI sector, potentially impacting SoundHound AI's stock even further.

Stocks: SOUN NVDA