Shares of SoundHound AI (NASDAQ: SOUN) saw a significant increase in the spring of 2024 when Nvidia (NASDAQ: NVDA) made a rare investment in the company. However, the stock price has since dropped by 56% from its peak in early March.
Despite this drop, there is no need to panic. In fact, this could be a good opportunity for growth investors to buy shares at a lower price.
SoundHound AI specializes in voice AI and conversational intelligence technologies, which are becoming increasingly important in today’s world. The company has a strong technology platform built on years of experience and has secured long-term contracts worth $682 million with various clients.
Recently, SoundHound AI made strategic moves to strengthen its position in the market. The company paid off its $100 million debt, acquired key assets from Allset to expand into voice-based e-commerce, and converted preferred stock into common stock to simplify its capital structure.
While SoundHound AI is currently not profitable and its valuation ratios may raise some concerns, the company’s future looks promising with a large order backlog and strategic initiatives in place.
Investing in SoundHound AI may come with some risks, but the potential for impressive returns is there. The recent price drop presents an opportunity for investors looking to capitalize on the company’s growth potential.
Before investing in SoundHound AI, it’s important to consider all factors and do thorough research. The Motley Fool Stock Advisor team has identified 10 stocks that they believe could generate significant returns, so it’s worth exploring all options before making a decision.
Overall, SoundHound AI’s innovative technology and strong backlog suggest a bright future ahead, making it a potentially rewarding investment opportunity for those willing to take on some risk.