SoundHound AI Inc SOUN shares are surging after AI powerhouse Nvidia Corp NVDA reported a stake in the company.

What’s Happening: SoundHound shares started soaring after Nvidia disclosed a 1.73 million share stake in SoundHound. The stock has continued to trend higher Thursday morning.

SoundHound’s association with Nvidia goes back to 2017 when the company raised $75 million from an investor consortium including Nvidia GPU Ventures. The investment aimed to accelerate the adoption of SoundHound’s AI platform and facilitate the company’s international expansion.

Nvidia’s new regulatory filing has also uplifted several other stocks. The chipmaker’s portfolio includes investments in Arm Holdings, Recursion Pharmaceuticals, TuSimple Holdings, and Nano-X Imaging.

SoundHound AI last reported earnings on November 9. The company is due to report fourth-quarter results in the coming weeks, although an official date has not been announced.

SoundHound AI – Equity Research Insights

Equity research can provide valuable insights into a company’s fundamentals. Analysts develop financial models based on a company’s fundamentals and expected future earnings, arriving at a price target and stock recommendation.

SoundHound shares have an average one-year price target of $4.50, signifying an anticipated upside of 13.96%.

Due to varying assumptions, analysts may derive substantially different price targets and recommendations. No analysts hold bearish recommendations on SoundHound AI, while two analysts have bullish ratings. The highest price target from HC Wainwright & Co. is $5, while the lowest from Ladenburg Thalmann is $4.

SOUN Price Action: SoundHound AI shares were up 75.7% at $3.96 at the time of publication, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.