SoundHound AI Inc.'s (NASDAQ:SOUN) shares are trading lower Wednesday potentially from continued momentum due to sector-wide challenges.
What To Know: The broader tech selloff follows NVIDIA Inc.'s (NASDAQ:NVDA) mixed reception at CES 2025 and rising treasury yields on Tuesday. NVIDIA introduced new AI technologies, including Cosmos foundation models, RTX 50 series chips and a desktop AI workstation. While these highlight innovation, skepticism about their immediate profitability may have caused NVIDIA's stock to be volatile, pressuring the tech sector including smaller AI-focused firms like SoundHound.
Economic data may have also added to the decline. Job openings exceeded expectations, pushing treasury yields higher, with the 30-year yield hitting 4.90%. This environment increases borrowing costs for growth-oriented companies, further straining investor sentiment toward AI stocks like SoundHound.
At CES, SoundHound showcased its new in-vehicle voice commerce platform, allowing drivers to place food orders hands-free via car infotainment systems. The system integrates with major restaurant brands and uses GPS for seamless pick-up coordination. The company plans to expand these features to banking, ticketing and other transactions in future iterations. This innovation underscores SoundHound's push for voice commerce adoption but has yet to counteract market pressures
SOUN Price Action: SoundHound shares were down 16.7% at $14.98 at the time of writing, according to Benzinga Pro.
