According to the latest 13F filing, chip giant Nvidia (NASDAQ:NVDA) bought shares of SoundHound AI (NASDAQ:SOUN) in Q4. While this is a positive indicator, investors should use more than one parameter to formulate their investing strategies. Savvy investors can use TipRanks’ Experts Center tools to make well-informed investment decisions.
Before we dig deeper, it’s worth highlighting that shares of SoundHound, which specializes in voice artificial intelligence (AI) solutions, jumped over 47% in Wednesday’s after-hours trading following the disclosures. Notably, Nvidia owned 1.73 million shares of SoundHound worth $3.7 million as of the end of December 2023.
With this background, let’s look at the Street’s forecast for SoundHound stock.
Is SoundHound a Good Stock to Buy?
Based on analysts’ consensus ratings, SoundHound is a good stock to buy. The company’s focus on expanding its Chat AI platform and channel partner ecosystem augurs well for revenue growth. Moreover, the company’s accretive acquisitions aimed at expanding its product portfolio are encouraging.
Ladenburg analyst Glenn Mattson started coverage of SOUN stock with a Buy rating and a price target of $4 on January 30. The analyst expects SOUN to benefit from the significant end-market opportunities. Meanwhile, Northland Securities analyst Michael Latimore termed SoundHound the “top pick for 2024.” Latimore reiterated a Buy on SOUN stock last month.
Overall, with three unanimous Buy recommendations, SOUN stock has a Strong Buy consensus rating. SoundHound stock has lost nearly 43% of its value in one year. The average analysts’ price target of $4.67 per share suggests 107.1% upside potential over the next 12 months.
