SoundHound AI Stock Recovers From Sell-Off Triggered By Nvidia Exit: Retail Gets More Bullish

Shares of voice and conversational artificial intelligence (AI) solutions company SoundHound, Inc. (SOUN) recovered on Tuesday from Friday’s 28% plunge. 

At last check, the stock traded 2.55% higher at $11.24.

Friday’s sell-off came after a 13-F report filed by Nvidia Corp. (NVDA) showed that the AI frontrunner fully divested its stake in SoundHound AI. At the end of the third quarter, Nvidia held 1.73 million SoundHound AI stock. 

Shares of SoundHound AI topped at $24.98 on Dec. 26, riding on the momentum imparted by multiple contract wins. The stock ended the year with a whopping gain of 836%. Subsequently, the stock witnessed a pullback, especially after the company’s Consumer Electronics Show announcements.

An ongoing Stocktwits poll showed that 43% of the respondents believe SoundHound AI has a solid business model. A sizeable 35% opined that Nvidia’s backing was essential.  Another 22% said it was too early to tell and would wait out the earnings. 

On Stocktwits, retail sentiment toward the stock climbed further into the ‘bullish’ territory (73/100), while the message volume jumped to an ‘extremely high’ level.

A retail watcher saw the dip as another “chance of a lifetime” to capitalize on a potential move past the $100. 

Another bullish user, convinced of the fundamentals, said shorts could pose a threat.

The stock has lost about 45% for the year. The average analysts’ price target for SoundHound AI stock is $18.67, according to TipRanks-compiled data. This leaves scope for a nearly 66% upside from current levels.

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