On the surface, SoundHound AI (NASDAQ: SOUN) looks like a small-cap stock with the promise of growing into a much larger company. Its voice recognition technology has attracted contracts with companies from numerous industries. It also received a significant investment from Nvidia.

Despite such interest, SoundHound stock comes with significant and surprising potential dangers. Investors should assess the following major risks before considering a position in this stock.

SoundHound has attracted a notable client list despite being a small-cap stock. The company provides voice recognition capabilities to companies as diverse as Honda, , and Mastercard. Moreover, the Nvidia investment likely added to the company's credibility.

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Source Fool.com