Nvidia is eyeing building a galaxy of lesser known companies for its next AI push.
The AI chip leader has been giving two other Magnificent seven stock a beating. The stock has a bigger market cap than either Amazon.com or Alphabet.
Meanwhile, in its first 13F filing ever, Nvidia disclosed it has invested $3.67 million in new issue SoundHound. Shares of SOUN are soaring, up nearly 50% in morning trading while volume is skyrocketing nearly 5,500% above its average. Shares shot up as much as 80% after today's open.
SoundHound Offers Products For Several Industries
While the stock trades below $4 per share, it has a daily trading dollar average volume of more than $32 million, which is plenty of liquidity. Aggressive investors could use the move above the 200-day moving average as an entry, but it may be better to wait for a proper base to develop.
SoundHound makes AI software for several industries. According to the company, automakers such as Stellantis, Hyundai and Mercedes-Benz use its voice assistant products and data management services.
Restaurants are another industry that uses its products for mobile, drive-through and kiosk orders. SoundHound also provides products for self-service platforms in banking, travel, leisure and other industries.
The company has had steady sales growth though it has yet to show profits since it went public in 2022. Shares listed on the Nasdaq after the company merged with Archimedes Tech SPAC Partners, a special purpose acquisition company. Its products also compete with Amazon's Alexa.
Nvidia also announced stakes in other little known recent new issues, including health care stocks Nano-X Imaging and Recursion Pharmaceuticals and autonomous semi-trucks maker TuSimple Holdings. TuSimple is a play in Tesla's space.
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