SoundHound AI (SOUN) Shares Drop as Nvidia Sells Stake
Shares of SoundHound AI (NASDAQ: SOUN) plummeted 29.4% in afternoon trading after a 13F filing revealed that chipmaker Nvidia had divested its stake in the company. This market reaction suggests that investors viewed Nvidia's involvement as a vote of confidence, and its exit has injected uncertainty into the picture.
Volatility and Opportunity
SoundHound AI's shares are notoriously volatile, having experienced 97 price swings of 5% or more in the past year. However, this recent drop is particularly significant, indicating a substantial shift in market sentiment.
Currently trading at $10.70 per share, SoundHound AI is down 46.9% year-to-date and 55.9% below its 52-week high. This drop may present a buying opportunity, especially for investors who believe in the company's strong fundamentals.
Lessons from the Past
As George Gilder's "Gorilla Game" reminds us, enterprise software stocks that develop their own generative AI capabilities may be the future leaders in the tech industry.
Special Report
For more detailed insights and analysis on SoundHound AI and other high-growth enterprise software stocks, access our exclusive Special Free Report here. This report provides valuable information on companies riding the automation wave and poised to capitalize on the generative AI trend.