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SoundHound AI Sank Despite Initially Posting Gains Today -- Is the Stock a Buy?
SoundHound AI (NASDAQ: SOUN) stock saw wild trading Monday and ended the day down 4.6% despite having been up as much as 7.8%. Meanwhile, the S&P 500 index slipped 1.8% in the session, and the Nasdaq Composite index fell 2.7%.SoundHound AI wound up posting a significant sell-off today due to risks for artificial intelligence (AI) company valuations and broader macroeconomic concerns. Reports emerged recently confirming that China was skirting U.S. export bans and still gaining access to Nvidia's most advanced AI processors by buying them from third-party sellers. Sell-offs intensified after President Trump confirmed that new tariffs on Canada and Mexico would go into effect tomorrow. There shouldn't be any doubts about it -- SoundHound is a high-risk stock. It's got some strong, early positioning in the conversational AI market, but the space is still young and likely to become home to a growing number of resource-rich competitors. Along those lines, Amazon has been showing off its next-gen conversational Alexa service and generating positive buzz.Continue reading
SoundHound AI (NASDAQ: SOUN) stock saw wild trading Monday and ended the day down 4.6% despite having been up as much as 7.8%. Meanwhile, the S&P 500 index slipped 1.8% in the session, and the Nasdaq Composite index fell 2.7%.
SoundHound AI wound up posting a significant sell-off today due to risks for artificial intelligence (AI) company valuations and broader macroeconomic concerns. Reports emerged recently confirming that China was skirting U.S. export bans and still gaining access to Nvidia's most advanced AI processors by buying them from third-party sellers. Sell-offs intensified after President Trump confirmed that new tariffs on Canada and Mexico would go into effect tomorrow.
There shouldn't be any doubts about it -- SoundHound is a high-risk stock. It's got some strong, early positioning in the conversational AI market, but the space is still young and likely to become home to a growing number of resource-rich competitors. Along those lines, Amazon has been showing off its next-gen conversational Alexa service and generating positive buzz.
