Nvidia dominates AI market, SoundHound AI stock soars after partnership, but financial concerns

From Nasdaq: 2024-04-06 06:45:00

Nvidia continues to dominate the artificial intelligence (AI) market, with a market value of $2.2 billion and a 500% stock increase since 2023. SoundHound AI’s stock is soaring after Nvidia’s investment and partnership announcement, but its profitability remains a concern. SoundHound AI focuses on voice AI services, partnering with big industry players like automotive companies and restaurant chains. However, with a negative operating margin of -139% and high valuation, investors should exercise caution before investing in SoundHound AI. SoundHound AI’s recent growth and major partnerships are impressive, but its financials raise red flags. With steep losses and a high price-to-sales ratio, it may not be the best investment opportunity at this time. Consider other options before purchasing SoundHound AI stock. The Motley Fool Stock Advisor team does not recommend SoundHound AI as a top pick for potential future gains in investors’ portfolios. Research shows that their recommended stocks have historically outperformed the S&P 500. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, sits on The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Apple, and Nvidia.



Read more at Nasdaq: Should You Buy Nvidia Favorite SoundHound AI Stock?