SoundHound AI (NASDAQ:SOUN), which offers conversational artificial intelligence (AI) solutions, witnessed a 53% drop in its shares in one month. This significant decline came after Capybara Research issued a short report on this penny stock. While SoundHound stock lost considerable value, individual investors have a Very Positive view of the company, given that in the last 30 days, the number of portfolios (tracked by TipRanks) holding the stock increased by 34.8%.
The data indicates that these investors capitalized on the dip in SOUN stock to take long positions. Notably, SOUN stock is still up about 87%, benefitting from investors’ enthusiasm for AI. Further, Nvidia (NASDAQ:NVDA), the leader in the AI space, revealed a stake in the company in February 2024. This further boosted investors’ sentiments.
Overall, among the 722,487 portfolios monitored by TipRanks, 0.9% have invested in SOUN stock.
Is SOUN Stock a Good Investment?
While individual investors are bullish, Wall Street analysts are cautiously optimistic about SOUN stock. As SOUN stock gave up most of its gains, Cantor Fitzgerald analyst Brett Knoblauch viewed SOUN’s valuation as attractive and upgraded the stock to Hold from Sell on April 10. His price target of $4.90 implies a 23.43% upside potential from current levels.
Overall, SOUN stock has a Moderate Buy consensus rating based on four Buy, one Hold, and one Sell recommendations. Analysts’ average SOUN stock price target of $7.15 implies 80.10% upside potential from current levels.
Note: Investors can rely on TipRanks’ penny stock screener to find more compelling penny stocks.
