2 Trades to Consider Following SoundHound AI’s (SOUN) Dramatic Implosion

While the technology ecosystem — particularly the segments dealing with artificial intelligence — has undeniably delivered groundbreaking innovations, it has also sparked wild volatility in the market. Case in point is voice AI technology specialist SoundHound AI (SOUN). As a provider of voice assistants and conversational AI, the company has imbued machine learning with a sense of practicality. Not surprisingly, SOUN stock has gained almost 175% in the past one year.

Still, investors can’t take the good without the bad. On Friday, SOUN stock gave up over 28% of equity value. For the week, that brought the loss to just under 30%. What sparked the selloff? It wasn’t really anything that the company did per say. Rather, regulatory filings revealed that Nvidia (NVDA) sold its stake in SoundHound. Unfortunately, the market viewed the move as a serious loss of confidence.