After SoundHound AI Stock Soared as Much as 320%, 1 Wall Street Analyst Thinks It's Falling to $1. Here Are 3 Things Smart Investors Should Know.
Euphoria surrounding artificial intelligence (AI) has helped fuel the S 500 and Nasdaq Composite to record levels this year. Indeed, the "Magnificent Seven" stocks -- Microsoft, Apple, Nvidia, , Amazon, Meta Platforms, and Tesla -- garner the majority of AI hype and have collectively played a big role in pushing the market higher.
But outside of mega-cap tech, one small AI player in the voice-recognition market has emerged. Shares in SoundHound AI (NASDAQ: SOUN) soared as high as 320% earlier this year after news that Nvidia made an investment in the company.
Although the momentum has cooled a bit, SoundHound AI stock is still up more than 90% so far in 2024. Considering that SoundHound AI was a penny stock at the beginning of the year, investors may want to think twice before pouring into this unique AI opportunity.
Source Fool.com