SOUN - Nvidia's AI Mini-Bets Set An Example Not To Follow
2024-02-19 19:55:00 ET
Summary
- SoundHound got a 76% share price boost on Thursday thanks to a newly disclosed investment from $1.8 trillion chipmaker Nvidia.
- After making 20 different investments in AI companies last year alone, more than even technology giants Alphabet and Microsoft, Nvidia will barely feel the sting of one bet gone bad.
- Nvidia’s filing also revealed investments in chipmaker Arm and biotechnology firm Recursion Pharmaceuticals, both of which also saw boosts to their stock prices on Feb. 15.
By Breakingviews
The stock-market hype around artificial intelligence turns out to be contagious. SoundHound (SOUN), a company that makes AI-powered voice assistants for cars and customer-service lines, got a 76% share price boost on Thursday thanks to a newly disclosed investment from $1.8 trillion chipmaker Nvidia (NVDA). It’s sensible for Nvidia boss Jensen Huang to spread his bets, even if some prove to be duds. But those hoping to ride his company’s coattails in pursuit of AI riches can’t say the same....
Nvidia's AI Mini-Bets Set An Example Not To Follow