SoundHound AI (NASDAQ: SOUN) stock soared on Tuesday after Northland Capital named it a top pick for 2024, alongside NVIDIA’s investment.
Northland Capital Markets maintains an optimistic stance on SoundHound AI (SOUN), reaffirming an Outperform rating. They also maintain a consistent price target of $4.00. This move follows the disclosure that NVIDIA Corporation (NASDAQ: NVDA), a prominent figure in the AI and gaming realm, has made a substantial investment in SoundHound AI.
NVIDIA’s investment, unveiled in a 13F filing, reveals the acquisition of 1.7 million shares in SoundHound AI. This investment is perceived as a strong endorsement of SoundHound AI’s prowess in natural language processing (NLP) technology, a vital component for various AI applications.
SoundHound AI’s technology stands out for its extensive natural language processing (NLP) capabilities. These capabilities are crucial for developing large language models (LLMs) such as those pioneered by OpenAI. The seamless integration of its core technology with LLMs represents a pivotal component of SoundHound AI’s value proposition. This integration has the potential to fuel the demand for AI solutions and, consequently, NVIDIA’s products.
The strategic alignment between NLP technology and the expanding landscape of AI makes NVIDIA’s investment in SoundHound AI a logical move. As NLP continues to catalyze AI advancements, NVIDIA’s stake in SoundHound AI underscores its commitment to capitalizing on the growing opportunities within the sector.
Northland Capital Markets has singled out SoundHound AI as a top stock pick for 2024, showcasing a high confidence in the company’s future outlook. This endorsement from analysts underscores the strategic significance of NVIDIA’s investment and SoundHound AI’s advantageous position within the rapidly growing AI sector.
SoundHound AI (NASDAQ: SOUN) Stock Movement
SOUN stock jumped 4.45% to close at $3.99 on Tuesday. The traders had exchanged hands with 100,343,845 (100.34 million) shares compared to the average daily trading volume of 16.09 million.
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