From Nasdaq: 2024-05-26 11:47:58

1. Nvidia (NVDA) leads the charge in AI stock performance, with phenomenal growth and widening profit margins. Other AI-driven stocks with lofty valuations are also catching investors’ attention.

2. SoundHound AI (SOUN) has surged 68% in the last year and over 136% in 2024. However, one Wall Street analyst believes the stock is overvalued at its current levels and warns of potential underperformance.

3. Valued at $1.64 billion, SoundHound AI operates in conversational intelligence with notable clients like Netflix and Mastercard. Despite revenue growth, the company remains unprofitable, leading to concerns about future fundraising and dilution of shareholder wealth.

4. KM Capital is bearish on SOUN stock, citing its lofty valuation and overpriced status. Despite positive outlooks and strong earnings, the firm believes the stock is significantly overvalued and may see a 76% drop from its current levels.

5. Wall Street analysts mostly recommend a “strong buy” or “hold” on SOUN stock, with a consensus rating of “moderate buy.” The mean target price of $7.17 suggests a potential 41.6% rally from current levels, although concerns about stock valuation persist.



Read more at Nasdaq: Find Out Which AI Stock a Wall Street Analyst Thinks is 76% Overvalued