SoundHound AI Inc’s (NASDAQ:SOUN) results this morning remind investors that the company is more than an AI-firm that received a nod of confidence from Nvidia Corp. (NASDAQ: NVDA).
The company, based in Santa Clara in California, announced on Friday that its revenues more than doubled during the fourth quarter. This led to an increase of 20% in its share price.
SOUN has also increased its forecast for the entire year, indicating that the future is bright whether or not Nvidia invests.
SoundHound’s stock has dropped by close to half for the entire year.
How Nvidia’s investment was no longer significant to SOUN
SoundHound’s shares fell by nearly 30% after Nvidia announced that it was no longer investing in voice AI.
The price movement may be a result of an investor’s overreaction.
This is because NVDA’s investment in SOUN was purely a financial one.
When the AI darling announced its first stake in SoundHound during the fourth quarter 2023, this was significant for SoundHound as it brought credibility and attention to the stock.
The investment didn’t yield any tangible benefits for SoundHound, as it did not result in a substantial partnership or direct support from Nvidia.
SoundHound, a Nasdaq listed company, continues to thrive without Nvidia. The demand for SoundHound products is just as high, so the NVDA driven selloff of SoundHound’s stock could be an excellent opportunity to invest.
SoundHound is still a popular choice for QSRs
SoundHound’s revenue is expected to fall between $157 and $177 millions in 2025.
The previous range was $175-$200 million.
Quick-service restaurants continue to show a strong interest in the voice AI platform.
Recently, it has teamed up even with some notable brands such as Peet’s coffee and Burger King UK.
Keyvan Mohajer, the chief executive of the company, told investors during the quarterly earnings call that “the pace of adoption is increasing” for the customer service. He added SOUN was “already the biggest provider with well over 10,000 outlets and dozens of prominent brand names.”
SoundHound does not pay dividends at the time of writing.
What other factors could increase the SoundHound share price in 2025
SoundHound views the DeepSeek project as an opportunity, since a rise in AI-based models may lower costs.
This artificial intelligence firm is dedicated to “taking its technology on the edge”, and this could also help it unlock further gains in share value.
Keyvan Mohajer, SOUN’s chief executive officer, is equally bullish about the in-car voice assistant. It “delivers leads and creates an monetizable opportunity for SoundHound by offering revenue sharing to carmakers.”
Wall Street is still bullish about SoundHound despite recent volatility.
Analysts expect the AI stock to rise by an average of $15.
The post Nvidia’s SoundHound investment isn’t as significant as it seems appeared first on ICD
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