Why SoundHound AI's Stock Is Plummeting Today
SoundHound AI (NASDAQ: SOUN) stock was selling off again in Monday's trading. The conversational artificial intelligence (AI) company's shares were down 8.8% as of 2:40 p.m. ET after having been down by as much as 11.9% earlier in the session.
Tech stocks generally were pulling back as investors braced themselves for Nvidia's fourth-quarter earnings release on Wednesday. That report and conference call could have implications for SoundHound AI on multiple levels.
Nvidia will publish this earnings season's most anticipated report this week, and investors are taking a moderately more cautious approach to AI stocks ahead of its release. The report could send valuation shock waves throughout the broader market, and AI stocks will likely see outsized movements, depending on how the chipmaker's earnings performance and guidance come in. As a mid-cap AI stock with a heavily forward-looking valuation, SoundHound AI could see a large valuation shift.
Source Fool.com
