Nvidia sold its stake in SoundHound, causing its stock to plummet by over 64%

From Nasdaq: 2025-03-14 04:22:00

Nvidia has seen a massive increase in valuation due to strong sales of its powerful data center chips for AI. The company recently sold its stake in SoundHound, a conversational AI developer, causing the latter’s stock to plummet by over 64%.

SoundHound AI is a key player in embedding conversational AI in daily life, with its technology being used by major quick-service restaurants and car manufacturers. Despite a recent drop in stock value, SoundHound’s revenue surged by 85% in 2024.

SoundHound ended 2024 with a significant order backlog and expects substantial revenue growth in the coming years. However, the company also reported a massive GAAP net loss, raising concerns about its financial sustainability.

SoundHound stock, though down from its peak, still trades at a high price-to-sales ratio compared to industry giants like Nvidia. Investors should consider the valuation before buying, especially with Nvidia exiting its stake in SoundHound.

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Read more at Nasdaq: Should You Buy SoundHound AI Stock After Its 64% Drop? This Recent Move by Nvidia Might Hold the Answer.