Why SoundHound AI, Inc. (SOUN) Crashed on Friday

We recently compiled a list of the These 10 Firms Were Heavily Hit on Friday. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against the other stocks.

Wall Street’s main indices finished mixed on Friday, with the tech-heavy Nasdaq emerging as the sole gainer, rallying 0.41 percent. The Dow Jones, for its part, decreased by 0.37 percent, while the S&P 500 was little changed, dipping 0.01 percent.

Ten companies mirrored a mostly pessimistic broader market.

To come up with this list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A software engineer focused on a computer screen, writing code to create a conversational assistant.

SoundHound AI, Inc. (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) was hit heavily on Friday, losing 28.10 percent to finish at $10.97 apiece as investors disposed of positions in the company, mirroring Nvidia Corp.’s (NVDA) dump in its shares.

Last week, NVDA submitted a regulatory filing showing its ownership positions in various firms. The filing showed a 44-percent reduction in its ownership in British chipmaker Arm Holdings while exiting Serve Robotics and SoundHound AI, Inc. (NASDAQ:SOUN).

An analyst from Triple D Trading was quoted as saying that there is no stronger vote of confidence than NVDA investing in a company.

NVDA’s divestment in SoundHound AI, Inc. (NASDAQ:SOUN) has raised investor concern over the future of its growth trajectory, particularly as it was once seen as a promising player in the AI industry.

Overall SOUN ranks 1st on our list of the stocks that crashed on Friday. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for other AI stocks that are as promising as SOUN but that trade at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.