From Nasdaq:

SoundHound AI stock (NASDAQ: SOUN) dropped 8% in morning trading Wednesday, with shares down as much as 14% earlier. Analyst caution prompted the rating downgrade from outperform to market perform. Despite recent gains, the stock remains up around 240% over the last month.

The incredible surge in SoundHound AI stock’s valuation has caused Northland to take a more cautious stance. The company’s emerging AI opportunities and Nvidia’s stake have fueled the stock’s rise. Investors should watch for the rollout and adoption of the company’s technologies this year, including in restaurants and drive-thrus.

SoundHound AI’s position as an AI play will likely lead to continued volatility, following its recent gains. With Nvidia’s disclosed stake amplifying interest, investors should weigh the stock’s valuation and personal risk tolerance. A conference call after Thursday’s market close will reveal more on the company’s performance and outlook.

Should you invest $1,000 in SoundHound AI now? The Motley Fool Stock Advisor team did not include it in their top 10 stocks for potential big returns. Stock Advisor offers a blueprint for success, including portfolio building guidance and new stock picks each month. Since 2002, Stock Advisor has tripled the return of the S&P 500.



Read more at Nasdaq: Why SoundHound AI Stock Is Plummeting Today