Week to date, shares of speech recognition specialist SoundHound AI (NASDAQ: SOUN) were up 53% as of 12 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence. The stock soared after Nvidia revealed late Wednesday that it owned a small stake in the company worth $3.7 million as of the end of December.

SoundHound AI is a small company with only $38 million in trailing revenue, but its speech recognition technology powered by artificial intelligence (AI) has been gaining adoption among several notable companies in the restaurant industry, including Jersey Mike's and White Castle. The company's revenue grew 19% year over year in 2023's third quarter.

The investment is consistent with Nvidia's recent interest in partnering with small tech start-ups doing big things in AI. Nvidia has two business segments, NVentures and Nvidia Inception, that are focused on identifying start-ups to form long-term partnerships. Nvidia made several corporate investments last year, including in cloud service provider CoreWeave and advanced AI model platform Hugging Face.

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Source Fool.com