Keep an Eye on SoundHound AI as Nvidia's GPU Technology Conference Begins—Important Aspect to Monitor

SoundHound AI experienced a remarkable surge, with its shares skyrocketing by 52% in the week preceding Nvidia's GPU Technology Conference. Following Nvidia's revelation in a recent SEC filing regarding its ownership stake in SoundHound by the close of 2023, SoundHound shares have witnessed an unprecedented surge in value, more than tripling since. SoundHound is renowned for its AI voice solutions catering to a wide array of industries, including automotive, culinary, customer service, and various other sectors. Investors are closely monitoring SoundHound shares as they approach a potential barrier at the stock's previous peak of $18.14, achieved during intraday trading in May 2022.

SoundHound AI (SOUN) continues to command attention on Monday following a notable 52% surge in its shares last week, just ahead of the highly anticipated conference hosted by investor favorite Nvidia (NVDA) this week. Nvidia's disclosure last month of its stake in the AI speech recognition software maker further fueled market excitement.

Since Nvidia's regulatory filing on February 14 revealed its ownership of 1.73 million SoundHound shares valued at approximately $3.67 million by the end of 2023, SoundHound's stock has more than tripled. While this transaction represents only 0.63% of SoundHound's outstanding stock, it signifies a significant vote of confidence in its AI product suite and future growth prospects.

Although SoundHound is not slated to present at Nvidia's annual GPU Technology Conference, its recent remarkable stock performance and growing influence in the AI sound sector will ensure that it remains in the spotlight.

Investors should be wary of potential significant price swings leading up to the conference. With the stock having surged more than fourfold since the beginning of the year and approximately 18.39% of its float held in short positions, near-term volatility is a distinct possibility. Additionally, while the company reported an impressive 80% increase in fourth-quarter revenue compared to the previous year, it continues to incur losses as it progresses toward commercializing its products.

After its IPO in April 2022, SoundHound AI shares experienced a sharp decline until the end of the year before stabilizing mostly sideways throughout 2023. Bullish sentiment emerged in February of this year, with the stock surpassing key resistance levels around $5 and its 50-day moving average crossing above the 200-day moving average, signaling a golden cross buy signal.

In a positive development for bullish investors, the stock has retested and successfully held its previous resistance area. Looking ahead, attention should be directed towards the all-time high (ATH) set in May 2022 at $18.14, which could serve as a critical level if the shares continue their upward trajectory. In premarket trading around 7:05 a.m. ET Monday, SoundHound shares were up 1.2% at $9.02.