SoundHound AI (NASDAQ: SOUN) stock surged over 19% on Tuesday amid speculation of its involvement in a new collaborative initiative integrating AI into cellular technology.
Several telecommunications juggernauts, alongside AI leader Nvidia Corporation (NASDAQ: NVDA), have joined forces to launch the AI-RAN Alliance at the GSMA Mobile World Congress on Monday. This collaboration aims to harness the power of AI to create fresh opportunities within the telecommunications industry.
The announcement sent ripples through the stock market, with traders showing strong interest in companies associated with the alliance. Shares of SOUN stock saw a notable uptick in trading activity following the news.
SOUN stock remained a hot topic across various social media platforms on Tuesday, ranking among the most discussed tickers on Stocktwits. Individual traders are anticipating a potential revelation when the company releases its earnings this week.
SoundHound will release its fourth-quarter financial results after the market closes on Thursday. Analysts expect the company will report a loss of 6 cents per share and revenue of $17.746 million.
SOUN stock soared in tandem with other AI-centric stocks in the wake of Nvidia’s stellar quarterly earnings report last week. Moreover, Nvidia disclosed investments in various firms in a recent 13-F filing with the SEC, less than a fortnight ago. SoundHound, among the beneficiaries, witnessed a notable surge in its stock price upon the filing’s revelation.
SoundHound AI (NASDAQ: SOUN) Stock Reaction
SOUN stock soared 19.30% to close at $6.86 on Tuesday. The traders had exchanged hands with 295,563,074 (295.56 million) shares compared to the average daily trading volume of 23.19 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
