We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights SoundHound, NVIDIA, Nebius, Alphabet and Chipotle Mexican Grill
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 19, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: SoundHound AI, Inc. (SOUN - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Nebius Group N.V. (NBIS - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
SoundHound AI Stock Selloff Explained – Buy More SOUN Shares?
Courtesy of the artificial intelligence (AI) boom, SoundHound AI, Inc. stock has soared over 380% in the past year. However, its upward journey abruptly stopped, leaving investors concerned about SoundHound AI’s prospects. Are investors panicking needlessly, or is the stock a risky but potentially rewarding investment? Let’s explore –
NVIDIA Dumps SoundHound AI, More Challenges Ahead
SoundHound AI stock slumped 28.1% on Friday after NVIDIA Corp.’s latest 13-F form revealed no stake in SOUN stock for the December quarter. According to the Dow Jones Market Data, this marks one of the worst performances for the SOUN stock, second only to the 48.4% one-day decline on June 6, 2022.
As of the September 13-F form, NVIDIA held 1.7 million shares of SoundHound AI, valued at $8 million. However, NVIDIA’s sale of its entire stake raised doubts about SoundHound AI’s future growth trajectory, leading to strong market selling.
NVIDIA is looking to diversify its AI portfolio, possibly shifting its stake from voice recognition technology to cloud computing and AI infrastructure. The semiconductor giant made new investments in Chinese self-driving tech firm WeRide and Nebius Group N.V., an AI cloud computing company.
Meanwhile, SoundHound AI’s lofty valuations, resource constraints, losses from heavy investments, and reliance only on equity financing may hamper future growth. Alphabet Inc. entering SoundHound AI’s space might also lead to stiff competition. After all, several cars, including Mercedes-Benz CLA vehicles, use Alphabet’s conversational AI platform.
How to Trade SOUN Stock Now?
Despite setbacks like NVIDIA’s exit, the SoundHound AI stock has the wherewithal to be a long-term winner in the AI race. The loss of NVIDIA, undoubtedly, has injected short-term volatility in SOUN stock, but the company still has strong revenue growth prospects.
SoundHound AI’s management estimated revenues to be $85 million for 2024 and $175 million for the current year, up from an earlier forecast of $80 million for 2024 and $150 million for 2025. The revenue growth projections remain impressive because of the widespread adoption of SoundHound AI’s products. Its voice-enabled AI systems are in demand among electric vehicle manufacturers and quick-service restaurants like Chipotle Mexican Grill, Inc.
For the time being, the Federal Reserve has kept interest rates unchanged in its latest policy meeting; this won’t affect SoundHound AI’s cash flows. Moreover, NVIDIA’s stake in SoundHound AI was minuscule, and won’t have a material impact on the voice AI platform provider’s business.
Thus, risk-tolerant investors who believe in SoundHound AI’s long-term potential should treat Friday’s selloff as a buying opportunity. Some cautious investors may wait to see how SoundHound AI’s outlook unfolds. (read more: Is Under $20 SoundHound AI Stock the Next NVIDIA, and a Buy?).
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights SoundHound, NVIDIA, Nebius, Alphabet and Chipotle Mexican Grill
For Immediate Release
Chicago, IL – February 19, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: SoundHound AI, Inc. (SOUN - Free Report) , NVIDIA Corp. (NVDA - Free Report) , Nebius Group N.V. (NBIS - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
SoundHound AI Stock Selloff Explained – Buy More SOUN Shares?
Courtesy of the artificial intelligence (AI) boom, SoundHound AI, Inc. stock has soared over 380% in the past year. However, its upward journey abruptly stopped, leaving investors concerned about SoundHound AI’s prospects. Are investors panicking needlessly, or is the stock a risky but potentially rewarding investment? Let’s explore –
NVIDIA Dumps SoundHound AI, More Challenges Ahead
SoundHound AI stock slumped 28.1% on Friday after NVIDIA Corp.’s latest 13-F form revealed no stake in SOUN stock for the December quarter. According to the Dow Jones Market Data, this marks one of the worst performances for the SOUN stock, second only to the 48.4% one-day decline on June 6, 2022.
As of the September 13-F form, NVIDIA held 1.7 million shares of SoundHound AI, valued at $8 million. However, NVIDIA’s sale of its entire stake raised doubts about SoundHound AI’s future growth trajectory, leading to strong market selling.
NVIDIA is looking to diversify its AI portfolio, possibly shifting its stake from voice recognition technology to cloud computing and AI infrastructure. The semiconductor giant made new investments in Chinese self-driving tech firm WeRide and Nebius Group N.V., an AI cloud computing company.
Meanwhile, SoundHound AI’s lofty valuations, resource constraints, losses from heavy investments, and reliance only on equity financing may hamper future growth. Alphabet Inc. entering SoundHound AI’s space might also lead to stiff competition. After all, several cars, including Mercedes-Benz CLA vehicles, use Alphabet’s conversational AI platform.
How to Trade SOUN Stock Now?
Despite setbacks like NVIDIA’s exit, the SoundHound AI stock has the wherewithal to be a long-term winner in the AI race. The loss of NVIDIA, undoubtedly, has injected short-term volatility in SOUN stock, but the company still has strong revenue growth prospects.
SoundHound AI’s management estimated revenues to be $85 million for 2024 and $175 million for the current year, up from an earlier forecast of $80 million for 2024 and $150 million for 2025. The revenue growth projections remain impressive because of the widespread adoption of SoundHound AI’s products. Its voice-enabled AI systems are in demand among electric vehicle manufacturers and quick-service restaurants like Chipotle Mexican Grill, Inc.
For the time being, the Federal Reserve has kept interest rates unchanged in its latest policy meeting; this won’t affect SoundHound AI’s cash flows. Moreover, NVIDIA’s stake in SoundHound AI was minuscule, and won’t have a material impact on the voice AI platform provider’s business.
Thus, risk-tolerant investors who believe in SoundHound AI’s long-term potential should treat Friday’s selloff as a buying opportunity. Some cautious investors may wait to see how SoundHound AI’s outlook unfolds. (read more: Is Under $20 SoundHound AI Stock the Next NVIDIA, and a Buy?).
SoundHound AI has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.