Why Wall Street Can’t Stop Betting on SoundHound AI (Spoiler: It’s Not Just the Hype)
Wall Street's latest obsession isn't another meme stock—it's SoundHound AI. Here's why hedge funds are dumping cash into voice recognition while Main Street scratches its head.
### The AI Gold Rush 2.0
Forget pickaxes—2025's prospectors are betting on neural networks. SoundHound's edge? Processing speech 3x faster than Amazon's Alexa while using half the power. That's not innovation—that's a license to print money.
### The Whisper Heard Across Trading Floors
When SoundHound inked deals with 8/10 major automakers last quarter, algo traders went berserk. Now every quant from NYC to Hong Kong is backtesting voice-command adoption rates like it's the new CPI data.
### The Cynical Truth
Let's be real—Wall Street isn't funding the future. They're front-running the next hype cycle before retail catches on. When the music stops, at least the AI will politely tell bagholders 'I'm sorry, I can't do that.'
Two peas in an AI pod
This used to be a pretty obvious thing. SoundHound AI's stock surged sky-high in early 2024 because Nvidia made a small investment in the company's stock. The AI chip giant followed up with not one but two SoundHound AI partnerships. The companies are working together on voice-controlled vehicle features as part of the Nvidia Drive platform. Furthermore, SoundHound AI is working closely with Nvidia to deliver real-time AI responses even if you don't have access to the internet.
Nvidia has sold its handful of SoundHound AI shares. Many investors may have forgotten this important connection, but the two projects are still happening. For example, SoundHound AI recently presented new in-car ordering systems that rely on the vehicle's Nvidia-powered AI hardware -- not the fast food restaurant's digital tools.
Image source: Getty Images.
Don't sleep on SoundHound AI's earnings
You might have written SoundHound AI off as a pure meme stock in recent months, driven more by social media posts than business prospects. That's a mistake. Sure, SoundHound AI's shares still look a bit pricey after the meme-based shenanigans of 2024, but the company also runs a serious business -- and it can't hurt to have Nvidia as a partner.
I expect more details about SoundHound AI's cozy Nvidia connections in next Thursday's second-quarter earnings call. The company has delivered mixed results in recent quarters, with soft revenue growth but plenty of bullish bottom-line surprises. I don't recommend loading up on SoundHound AI's pricey stock ahead of this event, but you could set up a small position just to keep an eye on this promising AI stock in the long run.
