Nvidia Owns a Stake in SoundHound AI Stock. (You Should Too!)

Stocks to buy

Not long ago, The Wall Street Journal reported that Nvidia (NASDAQ:NVDA) owned approximately 1.7 million shares of SoundHound AI (NASDAQ:SOUN). Surely, it’s fair to call Nvidia a kingmaker in artificial intelligence. Therefore, investors should conduct their due diligence on SoundHound AI and then consider buying some SOUN stock.

Before you hit the “buy” button, though, you’ll need to understand why SoundHound AI isn’t just another machine-learning-focused company. Once you get to know SoundHound AI and see how the company is growing, you’ll almost certainly be ready to make a small investment.

What Makes SoundHound AI Different

Plenty of companies specialize in artificial intelligence, but have you heard about conversational intelligence? That’s SoundHound AI’s focus. In particular, the company “offers voice AI solutions that let businesses offer incredible conversational experiences to their customers.”

SoundHound AI co-founder and CEO Keyvan Mohajer provided further explanation to Yahoo! Finance. He stated that SoundHound AI is “enabling cars and TVs… millions of devices, and we are powering customer service, we are in 10,000 locations with 100,000 in our pipeline…”

Now, Nvidia’s stake in SOUN stock makes a lot of sense. Just as Nvidia is the undisputed champion of AI graphics processing units, SoundHound AI is positioning itself as a leader in AI-powered customer-service products.

SoundHound AI recently introduced a “voice assistant with integrated ChatGPT” functionality for automobiles. Thus, SoundHound AI is a pioneer in what could prove to be a hyper-growth niche machine-learning market.

SoundHound AI’s Quarterly Revenue Stunner

SoundHound AI might be “in 10,000 locations with 100,000” more in the company’s pipeline, but does this translate to revenue growth? The answer is definitely yes, and SoundHound AI has the data points to prove it.

During 2023’s fourth quarter, SoundHound AI generated revenue of $17.1 million, up 80% year over year. That’s a result that even the most reluctant investors have to respect.

SoundHound AI appears to be closing the profitability gap. Specifically, the company reported a Q4 2023 a net earnings loss of 7 cents per share, versus a net loss of 15 cents per share in the year-earlier quarter.

Looking ahead, SoundHound AI expects to generate full-year 2024 revenue of $63 million to $77 million. Then, the company’s outlook calls for 2025 revenue “exceeding $100 million.” This would represent rapid revenue acceleration, as SoundHound AI’s revenue for 2023 was $45.9 million.

SOUN Stock: A Niche AI Winner in the Making

Think about how successful Nvidia is in the area of AI GPUs. Could SoundHound AI become similarly successful in voice AI? It’s a possibility worth considering.

To put it another way, SoundHound AI is a specialist in a niche AI market that could expand quickly in the coming quarters. Besides, SoundHound AI’s revenue growth is indisputable.

It makes perfect sense, then, that Nvidia has a stake in SoundHound AI. Consequently, investors ought to research the company thoroughly and then pick up a few SOUN stock shares.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Articles You May Like

The Flying Car Revolution: 3 Soaring Stocks to Watch in the eVTOL Market
Top Wall Street analysts like these 3 dividend stocks for passive income
3 Low-Beta, High-Reward Stocks That Have More Room to Run
The 3 Most Undervalued Healthcare Stocks to Buy in April 2024
Plug Power Stock’s Wild Ride: Brace for Impact or Bail Out Now?