Today's news is about SoundHound AI Inc. (SOUN) shares crashing on the stock market index, Dow Jones. The decline is due to investors' resorting to profit-taking and SOUN's rival company, Cerence, mutual partnership with Nvidia Corporation.
SOUN Shares Decline on Dow Jones
SoundHound AI Inc. (SOUN) has recently reviewed on Dow Jones, a stock market index. The review was based only on stocks with at least $2 billion in market capitalization and $5 million daily trading volume. SoundHound shares crashed today on Dow Jones.
SoundHound AI Inc. (NASDAQ: SOUN) share price value declined 3.54 per cent to $19.89, ending a two-day winning streak. The downfall is attributed to investors resorting to profit-taking as they sell off their positions after news of a rival company’s partnership with the Nvidia Corporation.
Cerence and Nvidia Shake Hands on a Mutual Partnership
Cerence, a rival of SoundHound, is highly known as a software company developing AI assistant technology for automobiles. Cerence has recently partnered with Nvidia Corporation, a partnership that has caused a decline in SoundHound AI Inc. shares in the market.
This mutual collaboration is done to build up the CaLLM (Cerence Automotive Large Language Model) family of language models that aims to speed up the development and deployment of generative AI for automotive applications, integrating both cloud-based and embedded solutions such as CaLLM Edge.
Analysts Remain Optimistic
Despite the drop, analysts are hopeful that SoundHound has a strong potential to grow, citing the booming AI industry. Last week, SoundHound grew its buy rating from HC Wainwright $8 per share to $26 apiece.
SOUN Ranks 10th on List of Stocks That Crashed
As of today’s news, the Dow Jones review has ranked SoundHound AI Inc. 10th on the list of stocks that crashed on Monday. Witnessing the company’s strong standing in the market and its fueled potential, analysts believe that other AI stocks may offer higher returns in a shorter timeframe and that the company will perform well.