Nvidia, the top dog in the world of artificial intelligence (AI) investments, might just have a few tricks up its sleeve that many investors are unaware of. The tech giant recently disclosed investments exceeding $100 million, as mandated by the Securities and Exchange Commission (SEC). And one of the companies catching Nvidia’s eye is none other than SoundHound AI (NASDAQ: SOUN).
SoundHound AI, as the name suggests, specializes in audio and artificial intelligence. Their products are gaining significant traction in industries like restaurants and automobiles. The integration of ChatGPT into Stellantis DS vehicles and revamped phone ordering experiences with Jersey Mike’s Subs are just the tip of the iceberg for this innovative company.
But with great innovation comes great expense. SoundHound’s stock is currently quite pricey, with a valuation around 38 times sales, in comparison to other AI software stocks trading between 10 to 20 times sales. This begs the question – is now the right time to invest in SoundHound?
While the company shows tremendous promise with its product offerings and expanding customer base, the steep price of the stock and the recent hype surrounding Nvidia’s investment may give some investors pause. It’s crucial to weigh the potential for growth against the current valuation before making any investment decisions.
So, what should you do? The best course of action may be to take a small position in SoundHound, no more than 1% of your portfolio. This way, you can benefit if the company thrives without risking too much if it falters. Timing is key, and it may be wise to wait for the buzz around Nvidia’s investment to settle before diving in.
As we navigate the ever-evolving world of AI investments, SoundHound AI presents an intriguing opportunity for savvy investors. Do you think now is the right time to invest in this cutting-edge company? Sound off in the comments and let’s start a conversation about the future of AI investments!
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