The SoundHound AI shares are rising significantly during the daily trading session on Thursday. S&P Global Market Intelligence data shows that the share price of the audio technology business had increased by 16.9% of the total
SoundHound is surging higher today following a week of unstable trading, largely because of positive analyst coverage on Nvidia. This AI stock is currently followed most closely in the market. Despite a recent post-earnings decline that has caused the SoundHound stock to decline by about 21% down its 52-week high, the company’s share price has risen by 178% throughout 2024 trading.
Nvidia is yet again raising SoundHound AI stock.
Nvidia is the most significant AI stock on the market, and it manufactures the graphics processors (GPUs) required to operate sophisticated AI applications. Whether positive or negative, news about the market leader in GPUs typically has a noticeable impact on the values of other businesses that are heavily exposed to trends in artificial intelligence.
Additionally, it was disclosed last month that Nvidia owned about $3.7 million worth of SoundHound AI stock after the previous year’s fourth quarter. SoundHound has recently seen particularly noticeable movements in line with Nvidia-related news due to the investment situation. With everything considered, it has proved a very optimistic catalyst for the audio expert. As a result, its stock is rising further today.
Mizuho increased its one-year price objective on the stock of Nvidia between eighty-five dollars for each share to one thousand dollars for each share in a note released today. The company raised its price target, citing Nvidia’s strengths in custom AI processor designs and upcoming ethernet positive trends. According to the publication time, the market leader in GPUs’ share price has increased by about 3.6% in today’s trade, and SoundHound is also benefiting from the positive momentum.
What is SoundHound AI’s next move?
SoundHound is still far smaller than Nvidia, with a market cap of just $1.8 billion, and it can provide a more spectacular upside from its current valuation levels. Because of this, audio-tech experts frequently experience even greater share price increases after Nvidia releases positive news.
Therefore, it’s probable that positive Nvidia-related events will keep SoundHound stock rising in the foreseeable future. However, the company’s sales and earnings results will ultimately determine the long-term performance of the sound software company’s stock.
Demand for SoundHound’s technology is picking up speed, as the company’s order backlog nearly doubled to $661 million by the conclusion of the previous year’s fourth quarter. However, it will take a while before these incomplete orders become genuine purchases.
By the centre of its projection range, SoundHound estimates that sales would rise by nearly 52.5% for the current financial year, reaching about $70 million. Although it is an impressive growth rate, investors should know that the stock is an at-risk, high-reward proposition given the company’s valuation, which is almost twenty-six times the current year’s projected revenue.
Is it the right time to invest $1,000 in SoundHound AI?
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