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Why Soundhound Ai Stock Was Racing Higher On Thursday
Impressive news from a high-profile business partner was a major reason for the stock price pop experienced by SoundHound AI (NASDAQ: SOUN) on Thursday. The artificial intelligence (AI) company was up by nearly 9% in late-session trading, a rate that was easily topping the 0.8% rise of the S&P 500 (SNPINDEX: ^GSPC).
Follow the leader
That news was the quarterly results posted after market hours Wednesday by leading graphics card processor company Nvidia, whose cutting-edge hardware products are widely used in the burgeoning AI industry.
Happily for that industry -- not to mention its shareholders -- Nvidia did very well in the third quarter of its fiscal 2025. It managed to nearly double its already considerable revenue on a year-over-year basis, to more than $35 billion, and somehow top that with a 103% improvement in per-share net income (which hit $0.81). Both figures were comfortably above the consensus analyst estimates.
This positively affects SoundHound AI in two important ways. One, it clearly illustrates that there's more than enough demand for AI functionalities of all kinds to sustain companies supplying the hardware that makes the tech possible. Second, and more directly, Nvidia is an investor in SoundHound AI; as of Sept. 30, the former company owned more than 1.7 million shares of the latter.
Agents of change
That happy development with Nvidia's results wasn't the only reason the market was sweet on SoundHound AI Thursday -- the company had some good news of its own to report.
That morning, it said in a press release that its AI "agents" had assisted one of its clients, insurer Apivia Courtage, in helping more than 100,000 customer inquiries. SoundHound AI added that this had reduced by 20% the number of inbound requests handled by Apivia's customer relations specialists.
Both of these developments were unambiguously positive for SoundHound AI, and should boost the company's profile. Just now, it isn't considered one of the more impactful or influential AI businesses on the market.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
