SoundHound AI, Inc.

Key Points
Nvidia announced it has made a $1 billion investment in Nokia.
Nvidia is also partnering with Nokia on technology integrations and new networking tech.
Today's investment and partnership news is a promising sign that Nokia's network bets will continue to pay off.
In a surprising move revealed Tuesday, Nvidia (NASDAQ: NVDA) announced it was taking a $1 billion investment stake in Nokia (NYSE: NOK). The news pushed Nokia stock up 22.8% in the day's trading and rocketed its market capitalization up to approximately $41.8 billion -- its highest level in well over a decade.
In addition to the investment deal, Nokia is teaming up to tailor its 5G and 6G technologies to run on Nvidia's processors. The two companies are also teaming up to create other network technologies to support artificial intelligence (AI) initiatives. Is Nokia stock poised for a sustained bullish run now that it has Nvidia in its corner?
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Nvidia flashes green flag for Nokia investors
A vote of confidence from Nvidia carries a lot of weight in the tech world -- and for good reason. The company's advanced graphics processing units (GPUs) are the top hardware for training and running AI models and applications.
The hardware leader has played a pioneering role in pushing the AI revolution forward, and it's scored incredible sales and earnings growth as customers have lined up to purchase its processors and secure a seat at the table for potentially transformative artificial intelligence trends. These dynamics have made Nvidia the world's most valuable company, and it sported a market capitalization of approximately $4.89 trillion at today's market close.
As the top player in the AI hardware market, Nvidia could emerge as a partner that helps drive big growth for Nokia and allow the smaller tech player to more easily branch into promising categories. The stock purchase raises some intriguing questions about what the AI giant sees in the former mobile hardware leader. Nvidia has had a fantastic track record with growth bets over the last half-decade, and it may have seen potential in Nokia's that's previously gone largely overlooked.
On the other hand, there are also recent developments that suggest investors shouldn't get too comfortable with expectations that Nvidia's investment is sure to power long-term gains for Nokia. For example, companies such as SoundHound AI and Serve Robotics saw massive gains when it was announced that Nvidia had made investments in them -- only to get hit with big sell-offs when subsequent 13F filings showed that these investment stakes had been liquidated.
In the grand scheme of things, Nvidia's investment in Nokia is still relatively small. Alternatively, the partnership between the two companies looks far more significant because Nokia's 5G and 6G technologies could be useful to Internet of Things (IoT) and robotics initiatives from Nvidia and other companies.
While the rise of large language models has already had a substantial impact on the software side of the tech sector, real-world AI implementation to further robotics and IoT technologies still appears to be at an earlier growth phase. Nokia was already scoring some significant wins and showing promise with its 5G and next-generation network technologies, and the recent team-up with Nvidia signals that the stock could be worth a close look for risk-tolerant investors.
Should you invest $1,000 in Nokia Oyj right now?
Before you buy stock in Nokia Oyj, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nokia Oyj wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,287!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,173,807!*
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Keith Noonan has positions in Serve Robotics. The Motley Fool has positions in and recommends Nvidia and Serve Robotics. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nvidia Just Made a $1 Billion Bet on Nokia. Should Investors Follow Its Lead?

Shares of SoundHound AI (NASDAQ: SOUN) have crushed the broad market in the past year with stunning gains of almost 170%, despite witnessing a lot of volatility. Investors have been buying this small-cap company hand over fist to take advantage of the growing demand for voice-based artificial intelligence (AI) solutions.
But SoundHound stock really took off earlier this year after Nvidia revealed a small stake in the company, which has carved out a niche in the voice AI market despite its small size. But should investors continue to hold the stock in anticipation of more gains over the next year, even though it's trading at an expensive valuation?
Let's find out.
SoundHound AI's latest results tell us its rapid growth is sustainable
SoundHound released its second-quarter results on Aug. 8. Revenue shot up 54% year over year to $13.5 million, beating the consensus estimate of $13.1 million. The adjusted loss per share fell to $0.04 from $0.07 in the same quarter last year.
The company -- whose voice solutions are used by businesses in customer-service areas such as restaurant ordering, and by automakers to develop chatbots and conversational AI assistants -- witnessed strong growth in demand once again last quarter. Its SoundHound Chat AI voice assistant is now being deployed by six brands of the automaker Stellantis.
A U.S.-based electric vehicle (EV) manufacturer will also start deploying SoundHound's voice assistant across its entire fleet very soon. It's also gaining a foothold with automakers in Latin America and Europe, not to mention various restaurants and food ordering platforms.
All this explains why the company's revenue pipeline increased faster than its top line last quarter. It finished the period with a cumulative subscriptions and bookings backlog of $723 million, almost double year over year. The bookings backlog includes committed customer contracts, while the subscriptions backlog is the potential revenue it could achieve from its current customers.
There is an element of uncertainty to this metric: There could be contract cancellations, or it might not achieve the revenue it anticipates from its current customers in the long run. But the company does point out that it makes "reasonable assumptions about adoption percentages" while calculating the backlog metric.
More importantly, SoundHound's growth suggests it's able to convert its strong pipeline into actual revenue. And the company has decided to further expand its opportunity in the voice AI market with the acquisition of Amelia for $80 million. The deal is meant to strengthen its presence in customer service, by helping to reach more customers in insurance, healthcare, retail, and financial services.
Management said Amelia will start contributing to its growth in the second half of 2024, and it now expects to clock more than $80 million in revenue this year, up from the prior range of $65 million to $77 million. For 2025, SoundHound expects sales to exceed $150 million, with Amelia contributing $45 million in recurring revenue alone.
All this indicates the stock could continue to remain a top investment in the coming year.
Analysts expect more upside over the next 12 months
According to six analysts covering SoundHound, the stock has a median 12-month price target of $7.00, a 36% jump from current levels. Five analysts rate it as a buy, while one has a hold rating. The company's latest results hint that it could indeed live up to those expectations in the coming year.
However, investors should note SoundHound stock is trading at an expensive 26 times sales following its red-hot rally in the past year. And the company is not profitable yet. So, those looking to add this AI stock to their portfolios need to be prepared to pay a rich valuation.
The good part is SoundHound's impressive growth could help it justify that premium, especially with the pending Amelia acquisition. Growth investors with a higher risk appetite can still consider it in anticipation of more upside.
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $711,657!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Where Will SoundHound AI Stock Be in 1 Year?

Key Points
SoundHound AI is winning big clients in the financial and healthcare industries.
Management believes it could keep putting up 50% organic revenue growth annually for the foreseeable future.
Finding under-the-radar artificial intelligence (AI) stocks isn't as easy as it once was, as there is a ton of interest in the sector, and interesting new players don't stay obscure for long. Still, there are plenty of stocks out there that could deliver jaw-dropping returns thanks to their various approaches to AI.
One of the ones I'm most excited about is SoundHound AI (NASDAQ: SOUN). It's still a relatively small company, with a market cap of $7.7 billion. If some of management's projections are true, it won't stay this small for long and could deliver some of the best returns in the market.
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SoundHound AI is a leader in audio recognition technology
SoundHound AI pairs generative AI with audio recognition. This isn't a new concept; products like Siri and Alexa have been attempting to do this for some time. However, SoundHound AI's technology is a massive leap forward in this arena, and its success is on display in multiple industries.
Two of the most popular deployment areas for SoundHound AI's tech are in restaurant drive-thrus and digital assistants in vehicles. SoundHound AI has captured many clients in the restaurant and automotive sectors, but it has its eyes on larger prizes.
Some of the most promising are industries where there is a heavy customer support presence, like the healthcare and financial industries. If SoundHound AI can create a product that can replace humans in assisting customers with common tasks, the cost savings to such companies could be enormous. SoundHound AI is already seeing strong adoption from companies in these industries; it claims seven of the top 10 global financial institutions as clients, and four of them increased their spending or renewed their contracts with it during Q2.
All of this success resulted in SoundHound AI's strong Q2 growth of 217% to $42.7 million. Few companies are growing at that speed, regardless of whether they're involved in artificial intelligence. However, investors aren't concerned about what SoundHound has delivered in the past. They want to know what's next.
On the latestearnings call Chief Financial Officer Nitesh Sharan stated that he thinks a goal of annual organic growth of 50% or greater for the "foreseeable future" is likely. While that's slower than its current pace, sustained 50% growth is nothing to be disappointed about, and could deliver massive, market-crushing returns.
However, there's one roadblock in the way.
SoundHound AI's stock carries a premium valuation
Just because SoundHound AI's stock isn't wildly popular in the stock market doesn't mean that it's an unknown. Quite a few investors have become aware of this booming business, which has caused its valuation to skyrocket over the past few years.
Trading now at 56 times sales, SoundHound AI is valued at some of its most expensive levels since it crashed at the end of 2024 and the beginning of 2025. That valuation is a bit of a red flag for investors: Most software stocks normally trade between 10 and 20 times sales, with the most successful trading at close to 30 times sales. However, most software companies aren't growing at sustained annual rates of 50% or greater, so SoundHound AI gets a bit of a pass here. Even so, it will take a few years' worth of such growth to bring its valuation back to reasonable levels, even if shares trade largely flat in the meantime.
Should SoundHound AI sustain its 50% growth rate for five years, its revenue will total nearly $1.3 billion by the end of 2030. Relative to SoundHound AI's current $7.7 billion valuation, this would only price the stock at 5.9 times 2030 sales. If the market gives it a 20 times sales valuation, that would put SoundHound AI at a market cap of $26 billion.
To hit that result from here would require it to deliver a compound annual growth rate of 28% over a five-year span, which would easily be among the market's higher-performing stocks.
So SoundHound AI stock may be expensive right now, but if it can deliver on the growth it expects, it could still be a phenomenal investment opportunity.
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: This Under-the-Radar AI Stock Could Deliver the Market's Best Returns

Key Points
AI has likely created some individual "bubble" stocks.
The industry's growth rate could continue to push AI stocks higher.
Most tech investors credit artificial intelligence (AI) with ending the 2022 bear market and sparking a boom in stock prices. Those gains created a new crop of transformational stocks, with companies like Nvidia (NASDAQ: NVDA) and Palantir leading the pack.
Now, the staggering gains in some of these stocks have led investors to speculate whether AI stocks are in a bubble. Knowing this, have investors missed this boom, or can they still find opportunity by investing in AI?
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Here's what investors should know and watch.
Understanding bubbles
In this context, investors must first understand stock market bubbles. They occur when stock prices increase considerably faster than the value those stocks represent.
Admittedly, one can find individual AI stocks that arguably sell for "bubble level" valuations. An example is Palantir, whose forward P/E ratio recently exceeded 275. Over time, its profits would likely have to increase considerably to justify such a forward earnings multiple.
Moreover, bubbles can be dangerous, even for long-term investors. One can look at Micron, whose stock did not return to its dot-com bubble high until 2022. Also, the price of silver just now achieved a new all-time high, something silver bulls have waited for since 1980.
Since few investors can afford to wait out such recoveries, it is critical for them to differentiate between bubbles and the overvaluations common with tech growth stocks.
Assessing AI valuations
Once investors better understand bubbles, they need to take stock of the industry's growth. According to Grand View Research, the AI industry is expected to grow from around $279 billion in 2024 to approximately $3.5 trillion by 2033. That amounts to a compound annual growth rate (CAGR) of 32% over the next eight years.
That indicates two things. For one, the "bubbles" in AI are less likely to pop anytime soon amid the industry tailwinds. Additionally, even beginning investors will probably have time to profit from an AI-driven bull market. Fortunately, the individual stocks show wide variances in terms of valuations.
For example, despite 1,500% gains over the last three years, market leader Nvidia has a P/E ratio of 52. While that is above the S&P 500's average of 31, it hardly represents bubble territory. It is also cheaper than rival AMD with a 139 P/E ratio. Still, when considering AMD's forward P/E of 62, its possible overvaluation does not compare to the higher valuations of stocks like Palantir.
Even among the "Magnificent Seven," stocks like Google parent Alphabet and social media giant Meta Platforms have P/E ratios below 30. Also, Qualcomm is arguably the value stock in the AI space. At a P/E of 16, it is likely investors are more concerned about muted upgrade cycles and China exposure than they are about the AI-enabled chips the company continues to release.
Instead, some of the higher valuations that could be in bubble territory seem to involve smaller stocks. Stocks like SoundHound AI, a mid-cap stock specializing in voice-enabled AI, do not even earn profits. Knowing that, its price-to-sales (P/S) ratio of 58 might concern investors given the S&P 500's average P/S ratio of 3.4.
More extreme valuations appear among quantum computing stocks. IonQ sells at a P/S ratio of 272, while Rigetti Computing's sales multiple is nearly 1,500. This could indicate that the quantum computing subsector is in a bubble, but neither of those represent AI stocks as a whole.
Is the AI boom becoming a bubble?
After evaluating individual stocks, investors should not think of AI stocks in general as a bubble.
Admittedly, one can find likely bubbles in the sector, and stocks like Palantir and some smaller stocks that specialize in quantum computing may fit that description.
Still, most stocks, including Nvidia, are likely not in bubble territory. When also seeing the low valuation of Qualcomm, investors should understand that they can find AI stocks trading at a wide variety of valuations.
That bodes well for an industry growing at an estimated 32% CAGR. With the AI growth likely to continue for years, investors should not shy away from the sector over "bubble" fears.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, Nvidia, Palantir Technologies, and Qualcomm. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is the AI Boom Turning Into a Bubble? Here's What Smart Investors Should Watch.

Below is Validea's guru fundamental report for SOUNDHOUND AI INC (SOUN). Of the 22 guru strategies we follow, SOUN rates highest using our Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
SOUNDHOUND AI INC (SOUN) is a small-cap growth stock in the Computer Services industry. The rating using this strategy is 41% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SOUNDHOUND AI INC
More Information on Motley Fool
About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Detailed Fundamental Analysis - SOUN

Key Points
IonQ is looking to become the Nvidia of quantum computing.
SoundHound could have a big advantage with voice-based artificial intelligence (AI) agents.
UiPath is looking to become an AI agent orchestration platform.
If you're looking to find a stock that could set you up for life, it could be a smart idea to add a few higher-risk, high-reward bets that could pay off big. Not all of these are going to hit, but if one does, it could help set you up for life. Let's look at three stocks that have this potential.
1. IonQ
IonQ (NYSE: IONQ) is trying to do for quantum computing what Nvidia did for artificial intelligence (AI). If it can accomplish this, the stock is going to have a ton of potential upside. IonQ management talks a big game, but it's also trying to follow Nvidia's (NASDAQ: NVDA) playbook by not being just focused on quantum computers, but by trying to carve out an important position throughout the entire quantum computing ecosystem.
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Its platform starts with its trapped-ion system, which uses real atoms instead of fabricated qubits, creating far more stable results with fewer errors. That approach is harder and more expensive, but it gives IonQ's machines a distinct edge in reliability, which is a massive hurdle in the race to build useful quantum computers.
Meanwhile, IonQ has been expanding its technology stack beyond just hardware. It's developing software like its Clifford Noise Reduction system to lower logical error rates and make its systems more scalable.
IonQ also recently showed its systems can convert photons from its trapped-ion machines into telecom wavelengths, meaning future quantum computers could communicate over existing fiber networks. That could one day be the foundation for a true quantum internet. The company is also aggressively making acquisitions to add new technologies and talent to its fold.
That said, quantum computing technology is still very young. IonQ only generated $28.3 million in revenue in the first half of the year while having a negative free cash flow of $89 million. However, it's well-financed and has a strong plan in place. If IonQ can execute and realize its long-term vision, the stock's potential upside is massive.
2. SoundHound AI
SoundHound AI (NASDAQ: SOUN) is a company that has shown it is able to go with the flow in an ever-changing tech landscape. It started out in music recognition, and then pivoted to voice AI, where it gained strong traction in the automobile and restaurant sectors due to its speech-to-meaning and deep-meaning understanding technology. More recently, it acquired a company called Amelia, which added conversational intelligence and a strong foothold in regulated industries like healthcare and finance that have their own jargon and compliance guidelines.
The Amelia acquisition was also a springboard to the company launching AI agents on its new Amelia 7.0 platform. The addition of AI agents moved the company beyond voice AI into one of the hottest areas of AI. While a lot of companies are chasing AI agents, SoundHound's voice-first approach, which can interpret intent even before a speaker finishes talking, is a huge potential advantage. The company has already begun transitioning 15 of its largest clients to Amelia 7.0, and it's made another acquisition, Interactions, to help improve how its AI agents work together.
SoundHound has already been growing like a weed, with revenue surging 217% year over year last quarter to $42.7 million. If its agentic AI push proves to be successful, the sky is the limit for the stock.
3. UiPath
UiPath (NYSE: PATH) is working to change the narrative that it will be an AI loser and instead be an AI winner. The company started out in robotic process automation (RPA), where bots can automate simple repetitive tasks. That still has a place, as it's much cheaper than running AI, but it is now looking to orchestrate how AI agents, bots, and humans can best work together.
With so many companies chasing AI agents, UiPath's platform is aimed to help these different agents and bots interact and work with each other. This gives customers the most flexibility by not being locked into one AI agent vendor, while also being able to save costs using bots when more pricey AI agents are not needed. Essentially, UiPath is looking to be the Switzerland of AI agents, and more of an orchestration platform.
It recently announced collaborations with several top AI companies, including Nvidia, Alphabet, and OpenAI. But perhaps the most interesting one is with Snowflake (NYSE: SNOW), where it will combine UiPath's automation tools with Snowflake's Cortex AI system, so businesses can move directly from data insights to real-time automated actions. That's a strong alternative to Palantir's data-driven platforms, and lets Snowflake clients use the data they already store to generate instant operational outcomes.
UiPath is starting to see early signs of a turnaround, and most new customers are adopting both its AI and RPA tools. With the stock trading at a forward price-to-sales (P/S) ratio of only around 5 times 2026 revenue estimates, the stock could have huge upside if it can become an essential AI agent orchestration tool and growth begins to significantly reaccelerate as a result.
Should you invest $1,000 in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $602,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,092!*
Now, it’s worth noting Stock Advisor’s total average return is 1,028% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Geoffrey Seiler has positions in Alphabet and UiPath. The Motley Fool has positions in and recommends Alphabet, Nvidia, Palantir Technologies, Snowflake, and UiPath. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Tech Stocks That Could Help Set You Up for Life

Below is Validea's guru fundamental report for SOUNDHOUND AI INC (SOUN). Of the 22 guru strategies we follow, SOUN rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
SOUNDHOUND AI INC (SOUN) is a mid-cap value stock in the Computer Services industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SOUNDHOUND AI INC
SOUN Guru Analysis
More Information on Dashan Huang
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
High Momentum Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Guru Fundamental Report for SOUN

Below is Validea's guru fundamental report for SOUNDHOUND AI INC (SOUN). Of the 22 guru strategies we follow, SOUN rates highest using our Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
SOUNDHOUND AI INC (SOUN) is a mid-cap value stock in the Computer Services industry. The rating using this strategy is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SOUNDHOUND AI INC
More Information on David Dreman
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
Additional Research Links
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Key Points
Point72 Asset Management increased its position in Nvidia by 207% last quarter.
While some investors have made a lot of money owning SoundHound AI, the stock is extremely volatile.
Despite its incredible return over the last few years, Nvidia still offers meaningful upside.
Steven A. Cohen is one of the most fascinating money managers of the modern era. As the billionaire founder of Point72 Asset Management and owner of the New York Mets, Cohen has long been a larger-than-life personality on Wall Street. He even served as the inspiration for fictional hedge fund titan Bobby Axelrod from Showtime's television series, Billions.
Unlike many of his high-profile peers, Cohen rarely seeks the spotlight. He seldom grants interviews or discusses his firm's inner workings. Yet, through Point72's quarterly 13F filings, everyday investors can still catch a glimpse of where one of the sharpest minds in finance is putting his capital.
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In its most recent filing, Point72 revealed two striking moves: The fund completely exited its position in SoundHound AI (NASDAQ: SOUN) during the second quarter while simultaneously doubling down on semiconductor powerhouse Nvidia (NASDAQ: NVDA).
Let's explore what might have driven these bold shifts -- and whether investors should consider following Cohen's lead.
Why Point72 dumped SoundHound AI stock
At first glance, SoundHound AI might appear to be a natural fit for a hedge fund chasing the artificial intelligence (AI) revolution. The company focuses on voice-recognition and conversational AI, operating at the crossroads of automotive interfaces, consumer services platforms, and Internet of Things (IoT) devices.
However, this once-promising niche is now dominated by big tech. Apple's ecosystem revolves around Siri, Amazon's smart devices are powered by Alexa, and both Alphabet and Microsoft continue to expand their own voice-enabled applications. Against this backdrop, smaller players like SoundHound face a steep uphill battle to compete on distribution and integration.
From an investment standpoint, Point72's exit likely reflects SoundHound's limited market position. While the company has developed impressive technology and is demonstrating an ability to expand its footprint through a growing list of strategic partnerships, it remains unprofitable, calling into question how the business will fund its growth.
In a hypercompetitive industry where customer acquisition costs are high and moats are thin, Cohen may be reallocating capital toward opportunities with stronger balance sheets and more durable positioning. Moreover, SoundHound AI stock has been a roller coaster over the last few years. Shares have often traded more on hype and headlines than on fundamentals or clear visibility into future earnings.
Ultimately, Point72 may have viewed SoundHound AI as short-term momentum trade before rotating any gains into companies with deeper competitive advantages and more predictable long-term growth trajectories.
Why Steven Cohen is piling into Nvidia right now
In contrast to SoundHound's uncertain path, Nvidia's trajectory looks nearly unstoppable. The semiconductor giant has become the foundation of the global AI boom, supplying the GPUs that power everything from large language models (LLMs) to autonomous vehicles, robotics, and next-generation data centers.
During the second quarter, Point72 increased its Nvidia position by 207% -- purchasing roughly 4.3 million shares. The firm also maintains a modest mix of call and put options -- a common practice among sophisticated funds seeking to optimize risk-adjusted returns.
In my view, Cohen's decision to increase exposure to Nvidia rests on several key factors.
AI infrastructure is the new goldrush
Cloud hyperscalers such as Microsoft Azure, Google Cloud Platform, Amazon Web Services (AWS), and Oracle are expected to pour nearly $500 billion into capital expenditures (capex) next year. In parallel, the U.S. government's Stargate Project aims to commit an additional half-trillion dollars to AI infrastructure as the technology becomes a strategic national priority. Over the long run, analysts estimate that total data center investments could approach $7 trillion by 2030 -- a wave of spending that positions Nvidia as an indispensable supplier at the heart of this transformation.
Stock-split accessibility
After completing a stock split last June, Nvidia's shares have climbed by roughly 50%. The split appears to have reignited buying enthusiasm and liquidity, helping fuel the company's multiyear rally.
Long-term margin expansion
Nvidia's upcoming chip architectures -- Blackwell Ultra and Rubin -- will pair with its CUDA software ecosystem to create a formidable competitive moat that extends far beyond silicon. This combination of hardware innovation and recurring software revenue gives Nvidia a rare dual advantage -- one that Cohen's portfolio managers likely see as the blueprint for sustained revenue growth and profit margin expansion at scale.
The bigger picture: A shift from speculation to scale
In essence, Cohen's Nvidia bet could mark a strategic rotation from speculation to substance -- a move away from chasing hype to owning the shovel factory in a gold rush. Rather than gambling on niche players hoping to find sustained footing, Cohen may be opting for the underlying infrastructure powering the entire AI ecosystem.
For investors, this decision carries an important takeaway: In today's bull market, scale, ecosystem dominance, and execution discipline matter far more than novelty. Hedge funds like Point72 are positioning accordingly, redeploying capital from the experimental corners of AI into the core pillars that will support its growth for the next decade.
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Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound AI, Inc.

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