Once again, the halo effect hits hard as Nvidia (NASDAQ:NVDA) brings up at least two AI stocks along with it. Indeed, C3.ai (NASDAQ:AI) and SoundHound (NASDAQ:SOUN) made big strides in Tuesday afternoon’s trading.
Nvidia recently brought out a whole slew of announcements, including some that emerged during the Memorial Day holiday itself. For instance, one report came out about Nvidia’s involvement in AI-driven advertising. Another dealt with Nvidia’s involvement in generative AI and its use in factories. All of that was enough to spur a lot of investor interest in AI and thus opened up some opportunities for more AI-related stocks to get in on the action.
But it wasn’t as though these two just enjoyed a halo effect. Only days ago, SoundHound rolled out a new voice assistant platform with an accompanying mobile app, all of which enjoyed some boost from AI functions. SoundHound, in particular, focused on delivering a quality experience through voice chat, which it believes is the key to a generative AI interface. Though C3.ai has had some unfortunate contretemps with analysts of late, it’s still bringing out new developments of its own to help drive its gains.
Nvidia, considered a Strong Buy by analyst consensus, only gained slightly today, but it offers the best overall chance for investors. With an average price target of $438.01, Nvidia stock offers a 9.41% upside potential. Meanwhile, C3.ai, rated a Hold, gained the most today but offers the least reason for investors to buy in. With an average price target of $20.50, C3.ai stock offers investors 49.27% downside risk.
