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SoundHound AI Inc. (Nasdaq: SOUN) saw its shares skyrocket over 50% in premarket trading Thursday morning after chipmaker Nvidia Corp. revealed a new $3.7 million investment in the conversational voice assistant developer.

Nvidia disclosed the stake and investments in other companies in a quarterly Securities and Exchange Commission filing Wednesday. Founded in 2005 and emerging as a leader in voice artificial intelligence, SoundHound has developed advanced conversational intelligence solutions over the past two decades.

The company went public just last year after forming key global partnerships across industries. It now powers customized voice AI strategies for top brands worldwide with its platform that facilitates natural voice-controlled interactions while maintaining enterprise data control.

Nvidia Announces Stake in SoundHound AI, Stock Surges Premarket

Nvidia Corp.’s latest regulatory filing showed the chipmaker’s investments in several companies, including conversational voice assistant developer SoundHound AI Inc., which saw its shares surge over 50% in premarket trading Thursday.

Nvidia revealed in a Securities and Exchange Commission 13F filing Wednesday that it had purchased a new $3.7 million stake in SoundHound AI during the first quarter. SoundHound’s shares jumped 53% to $3.47 apiece in premarket trading on the news. Nvidia also disclosed new investments in U.K.-based chip designer Arm Holdings and biotechnology company Recursion Pharmaceuticals Inc.

SoundHound AI’s stock experienced significant volatility early Thursday after Nvidia reported its investment. Shares opened at $2.37, surged as high as $4.06, and recently changed hands at $3.41 shortly before 10:30 a.m. EST.

The stock’s trading volume of nearly 135 million shares was far above SoundHound’s 65-day average volume of 9.6 million. Over the past 52 weeks, SoundHound’s share price has ranged from $1.49 to $5.11. Analysts estimate the company will report earnings per share of negative $0.46 over the next 12 months and have set a one-year price target of $4.43.

Soundhound AI’s Story So Far

Founded in 2005 by Stanford graduates, SoundHound AI started as a music recognition app called Midomi before rebranding to SoundHound in 2009 and emerging as a leader in voice AI technology. Over the past two decades, SoundHound has focused on developing advanced conversational intelligence solutions, including breakthrough innovations like Speech-to-Meaning and Deep Meaning Understanding. The company went public in 2022, trading on Nasdaq under SOUN, on the back of strong global partnerships with brands like Mercedes-Benz, Hyundai, and Mastercard and a suite of offerings aimed at voice-enabling products and enhancing customer experience across industries from automotive to hospitality.

Led by co-founder and CEO Keyvan Mohajer, SoundHound now powers customized voice AI strategies for top companies worldwide. With a leadership team comprising other co-founders and executives well-versed in science, engineering, product development, and business strategy, SoundHound continues to push boundaries in natural language processing. Its voice AI platform facilitates voice-controlled interactions between people and brands while allowing enterprises to maintain data control and ownership. SoundHound has received industry accolades for its conversational intelligence solutions and has expanded its global footprint over the years, currently supporting 25 languages.

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