Will SoundHound AI Stock Get A Boost From Project Stargate?

SoundHound AI, Inc. (NASDAQ: SOUN) saw a significant rise in its stock price as AI-related stocks surged after President Donald Trump unveiled Project Stargate. This initiative aims to invest $500 billion in AI infrastructure and includes major companies like Oracle Corp (oracle.com), OpenAI, Nvidia, and SoftBank Capital.

Key Information: Project Stargate has promised an immediate investment of $100 billion, with potential additional investments of up to $400 billion over the next four years. Larry Ellison, CEO of Oracle, announced plans for 20 new data centers under this project, starting with the first one currently being built in Texas.

Following the announcement of Project Stargate, stocks of various AI companies including Nvidia Corp. (nvidia.com) and Arm Holdings Plc rose significantly.

On the day of the announcement, SoundHound AI’s stock jumped by over 21%, although it experienced a slight decrease the following day. Recent analyst ratings suggest an average price target of $20 for SoundHound shares, indicating a potential upside of 24%.

With the ongoing development and adoption of AI technologies, SoundHound's Chat AI and other voice AI solutions might see increased demand as industries begin to embrace these advancements. Project Stargate may play a crucial role in hastening the growth and implementation of artificial intelligence, thanks to the anticipated infrastructure improvements.

Additional Partnerships: SoundHound also announced a collaboration with Rekor Systems, Inc. (rekor.com) on the same day. This partnership aims to integrate SoundHound’s voice AI with Rekor’s vehicle recognition software, enhancing emergency vehicle responses by providing real-time, voice-enabled alerts for urgent notifications such as Amber Alerts.

Current Stock Performance: As of the latest updates, SoundHound AI shares are trading down by 3.39% at $15.96.

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SoundHound, AI, Stocks