Did Nvidia Make a Mistake by Selling SoundHound AI Stock?
Nvidia (NVDA -0.85%), the world's largest company fueled by demand for its data center chips, has occasionally invested in other AI ventures. SoundHound AI (SOUN -5.74%), a leader in conversational AI, was among its holdings. Nvidia disclosed its stake in February 2024 but exited by December, despite SoundHound's revenue tripling in its most recent quarter and its stock surging 40% in a month.
SoundHound's Voice AI technology is gaining traction in quick-service restaurants and automotive sectors, handling customer orders and employee queries autonomously. The company's applications are embedded with major brands, underscoring its market potential. Nvidia's decision to divest raises questions about strategic timing, given SoundHound's accelerating growth.
