SOUN - Why SoundHound AI Stock Lost 22% Last Month
2024-07-08 00:57:05 ET
Shares of SoundHound AI (NASDAQ: SOUN) fell 21.8% in June 2024, according to data from S&P Global Market Intelligence . The voice control software specialist had no bad news to share last month, but investors shrugged off a handful of positive developments to drive the stock price lower anyway.
The move still makes sense from a certain point of view. In my eyes, however, the price drop makes SoundHound AI a no-brainer buy right now.
The June slide is a correction to an earlier jump. Semiconductor designer Nvidia (NASDAQ: NVDA) invested $3.7 million in SoundHound AI in 2023, building a 0.6% ownership stake in the smaller artificial intelligence (AI) company. When this investment was disclosed in February, Nvidia's modest position drove SoundHound AI's stock price sharply higher. The stock gained 66% overnight and tripled in price over the next two weeks. On March 15, one month after the disclosure, SoundHound AI's share price peaked at $10.25 -- more than four times the pre-disclosure level on $2.26 per share.
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Why SoundHound AI Stock Lost 22% Last Month