Nvidia’s Lucrative Bet on Conversational AI Startup SoundHound AI (SOUN)

According to the latest information, SoundHound AI (SOUN) is a specialist in conversational AI technologies that has caught the attention of Nvidia. Nvidia disclosed in a recent SEC filing that it purchased stakes in several AI-related companies, with SoundHound AI being the most successful investment so far. SoundHound AI’s stock has risen by 160% in 2024, leaving Nvidia with a profit of over $9 million. SoundHound AI’s technology is used by major brands such as Applebee’s, Chipotle, and Krispy Kreme to facilitate customer orders and employee assistance through voice recognition. The company also has partnerships with automakers such as Mercedes-Benz, Hyundai, and Stellantis (Chrysler, Jeep, and Dodge) for the integration of AI-powered voice assistants. Despite this strong performance, SoundHound AI’s stock valuation of 35 times sales is considered expensive compared to the likes of Nvidia and Microsoft, both of which are leaders in the AI industry. Therefore, while SoundHound AI’s growth prospects seem promising, investors should consider their risk tolerance before investing in the stock. Alternatively, the Motley Fool Stock Advisor service offers investors a blueprint for success, including regular updates and two new stock picks every month. This service has outperformed the S&P 500 since 2002.