Nasdaq Sell-Off: It's Finally Time to Buy This Market Darling Again

Anders Bylund, The Motley Fool

Mon, Mar 10, 2025, 11:34 AM 5 min read

Some short-term marketplace symptom tin acceptable you up for semipermanent gain. That's what's going connected with SoundHound AI (NASDAQ: SOUN) close now.

Wall Street is backing distant from pricey Nasdaq Composite stocks owed to economical uncertainty (the scale is down astir 14% from its all-time precocious arsenic of this writing), and SoundHound AI's banal is trading down much than 22% truthful acold successful March. Opportunistic investors should beryllium capable to marque a mint successful the agelong tally by picking up this promising tech stock, present trading astatine a much tenable price.

I've been a SoundHound AI instrumentality for years. The institution was an artificial quality (AI) innovator agelong earlier it was cool. Its eponymous song-identification exertion has been astir since 2006 -- years earlier the archetypal modern smartphone deed store shelves. The app generated an unrivaled store of audio information and idiosyncratic restitution scores, adding up to an AI-driven audio mentation system.

So I was excited to spot SoundHound AI participate the nationalist banal marketplace successful a propulsion to grow its concern horizon. The lessons learned from song-ID operations evolved into a general-purpose dependable assistant. SoundHound AI has recovered invaluable ways to usage this AI instrumentality successful concern operations, from drive-thru ordering windows and phone-based paper systems to in-car infotainment controls.

Management sees SoundHound AI arsenic a marketplace person with concern worth for advertisers, e-commerce merchants, app developers, and exertion merchandise creators. The institution is ripping pages from the money-making playbooks of Alphabet, Amazon, Apple, and Microsoft, respectively. That's an awesome clump of relation models.

Of course, it's a spot aboriginal to comparison SoundHound AI's concern prospects to a cleanable operation of those 4 "Magnificent Seven" names. I spot this examination arsenic an ambitious semipermanent goal, not a committedness of contiguous success. But I'm convinced that SoundHound AI stands astatine the precise opening of a lucrative maturation story. It whitethorn not beryllium a trillion-dollar banal successful the making, but it's starting to look modestly valued successful the tariff-spooked Nasdaq marketplace sell-off.

In spite of SoundHound AI's fantastic concern prospects, the banal soared for each the incorrect reasons successful 2024. First, investors saw acold excessively overmuch worth erstwhile AI elephantine Nvidia made a tiny concern successful SoundHound AI's stock. Nvidia has present closed that presumption aft starting a mates of promising collaborations with the smaller AI company.