Is Nvidia's Investment a Massive Game-Changer for SoundHound AI?
Companies invest in other companies all the time with no fanfare. But heads turn when a company the size and stature of Nvidia (NASDAQ: NVDA) does it. This was the case when an Nvidia filing revealed a $3.7 million position in SoundHound AI (NASDAQ: SOUN). As you can see, the stock shot up overnight.
For perspective, SoundHound has a market cap of around $1 billion, so this investment is well under 1% of its market cap and almost nothing to Nvidia's nearly $2 trillion market cap. But this wasn't the only news. SoftBank Group, which invests in many successful tech companies (like Arm Holdings (NASDAQ: ARM), which you can read about here), purchased 1.1 million shares in fourth-quarter 2023. Neither of these investments breaks the bank, but they have investors asking: What exactly does this SoundHound company do, and is it an excellent investment?
The days of a person taking your order at fast-food restaurants are ending. Sure, humans will still be needed to oversee it, but voice recognition technology will do the heavy lifting. Automobiles are also advancing voice recognition and AI-powered virtual assistants. SoundHound's tech allows people to communicate conversationally to make complex orders or queries. It's incredible stuff.
Source Fool.com
