1 Reason Wall Street Is Obsessed With SoundHound AI
SoundHound AI grabbed Wall Street's attention last year thanks to its partnership with Nvidia.
The companies are teaming up on voice-controlled vehicle technology using Nvidia's Drive platform.
Despite its meme stock reputation, SoundHound AI has a serious business model and innovative AI products.
10 stocks we like better than SoundHound AI ›
Building voice control systems around advanced artificial intelligence (AI) makes SoundHound AI (NASDAQ: SOUN) a promising investment these days. But that's not the whole story.
In short, SoundHound AI is the talk of the town (and by "town," I mean Wall Street) because of its tight connection with AI pioneer Nvidia (NASDAQ: NVDA).
Two peas in an AI pod
This used to be a pretty obvious thing. SoundHound AI's stock surged sky-high in early 2024 because Nvidia made a small investment in the company's stock. The AI chip giant followed up with not one but two SoundHound AI partnerships. The companies are working together on voice-controlled vehicle features as part of the Nvidia Drive platform. Furthermore, SoundHound AI is working closely with Nvidia to deliver real-time AI responses even if you don't have access to the internet.
Nvidia has sold its handful of SoundHound AI shares. Many investors may have forgotten this important connection, but the two projects are still happening. For example, SoundHound AI recently presented new in-car ordering systems that rely on the vehicle's Nvidia-powered AI hardware -- not the fast food restaurant's digital tools.
Don't sleep on SoundHound AI's earnings
You might have written SoundHound AI off as a pure meme stock in recent months, driven more by social media posts than business prospects. That's a mistake. Sure, SoundHound AI's shares still look a bit pricey after the meme-based shenanigans of 2024, but the company also runs a serious business -- and it can't hurt to have Nvidia as a partner.
I expect more details about SoundHound AI's cozy Nvidia connections in next Thursday's second-quarter earnings call. The company has delivered mixed results in recent quarters, with soft revenue growth but plenty of bullish bottom-line surprises. I don't recommend loading up on SoundHound AI's pricey stock ahead of this event, but you could set up a small position just to keep an eye on this promising AI stock in the long run.
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!*
Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
27 minutes ago
- CTV News
U.S. government proposes easing some restrictions on drones traveling long distances
A drone hovers in airspace outside the safety perimeter surrounding St. Louis Lambert International Airport as an airliner approaches for a landing on March 10, 2025. (AP Photo/Jeff Roberson, File) A new federal rule proposed Tuesday would make it easier for companies to use drones over longer distances out of the operator's sight without having to go through a cumbersome waiver process. The federal government had already approved 657 waivers to allow companies such as Amazon and major utilities to do this in certain circumstances, but the waiver process made it difficult. The rule would establish a clear process for drone operators to seek approval for using drones this way. The industry has long pressed for the rule because being able to operate drones out of sight opens up a multitude of possibilities for their use. Being able to do this enables more use of drones for deliveries, inspecting infrastructure like bridges and power lines and other uses in agriculture like spraying fertilizer over thousands of acres on large farms. 'This draft rule is a critical step toward enabling drone operations that will enhance safety, transform commercial services, and strengthen public safety with drones as a force multiplier,' Michael Robbins, president & CEO of the Association for Uncrewed Vehicle Systems International trade group, said in a statement. Rules spell out when drones can be flown out of sight The rule spells out the circumstances drones can be used under 400 feet under while working to ensure they don't disrupt aviation and cause problems around airports, Federal Aviation Administration Administrator Bryan Bedford said. The drones will be required to have collision-avoidance technology to keep them away from planes and other drones. And the rule will only allow drones up to 1,320 pounds (598 kg) — including their payloads. 'The issue hasn't been that America just can't innovate, America can't create, America can't build amazing drone technology. It's that we've had a bureaucracy in place that makes it incredibly incredibly difficult for innovators to actually innovate,' Transportation Secretary Sean Duffy said. The rules are designed to address the way modern drones are being used today. 'While the technology has rapidly advanced over the last decade, our regulatory framework in the United States has failed to keep pace,' said Linda Ellman, CEO of the Commercial Drone Alliance group. 'Drone operators must navigate a labyrinth of ill-suited regulations designed for crewed aircraft.' A rule in the works for years U.S. President Donald Trump issued executive orders in June directing the Transportation Department to quickly get this rule out. The orders also included restrictions meant to help protect against terrorism, espionage and public safety threats. Drones are already used in a variety of ways, including bolstering search and rescue operations, applying fertilizer, inspecting power lines and railroad bridges, and even delivering packages. Amazon is one of the companies that received a waiver allowing it to use drones this way for some of its deliveries in College Station, Texas, as it develops the technology. This rule should make it easier for Amazon and other companies to get approval to use drones this way in more communities. Addressing concerns about safety The war in Ukraine has highlighted how drones could be used in a military or terrorist attack — a concern as the World Cup and Olympics approach in the U.S. There also have been espionage cases where drones have been used to surveil sensitive sites. And White House officials said drones are being used to smuggle drugs over the border, and there are concerns about the potential for a disastrous collision between a drone and an airliner around an airport. The FAA consulted with the Department of Homeland Security as it developed this rule to make sure security concerns are addressed. The government will accept comments on the new rule over the next 60 days before finalizing the rule likely sometime later this year. Drone operators will have to go through background checks and be certified to operate drones out of their sight. Duffy and Bedford said they hope having regulations in place can help prevent problems like earlier this year when a small drone collided with a 'Super Scooper' plane that was fighting wildfires raging through Southern California. The drone punched a hole in the plane's left wing, causing enough damage that officials grounded the aircraft for several days to make repairs. Authorities tracked down the 56-year-old drone operator, who pleaded guilty to a federal charge of recklessly flying his aircraft. The man admitted he launched his DJI quadcopter to observe fire damage over the Pacific Palisades neighborhood, despite the FAA having restricted drone flying in the area, according to court records. The operator lost sight of the drone after it flew about 1.5 (2.4 kilometres) miles from where he had launched it. And that's when it struck the 'Super Scooper.' This rule applies directly to commercial and recreational drone operators who must apply to be able to fly drones out of sight. People who buy drones on their own and don't get approval would still be prohibited from doing this. Josh Funk, The Associated Press Associated Press writers Dee-Ann Durbin, Rio Yamat and Didi Tang contributed to this report.
CTV News
27 minutes ago
- CTV News
‘Let's be smarter than the U.S. is': Experts discuss trade strategy amid Trump tariffs
As Canadians continue to navigate the ever-changing trade policies of U.S. President Donald Trump's administration, experts say officials in Ottawa are walking a tight rope between appeasement and retaliation. '(Trump) takes retaliation very personally, so I'm not sure it's worth the calculation,' Drew Fagan, professor at the Munk School of Global Affairs & Public Policy, told BNN Bloomberg in a Tuesday interview. 'Canada's a big country, it's the tenth biggest economy in the world, but we're a middle weight fighting with a super-heavy weight, I don't think you want to go punching with them and thinking you're an equal; you're not.' A Friday deadline passed without a trade deal between the U.S. and Canada, and the Trump administration implemented a 35 per cent tariff on Canadian goods entering the U.S. that are not already covered under the existing North American free trade agreement. Most Canadian products exported to the U.S. do fall under the Canada-United States-Mexico agreement (CUSMA) and thus remain duty-free for now. That deal, however, is slated for renegotiation in 2026. 'For (Canada), the bigger negotiation is the one over the renewal, the review and the renegotiation of CUSMA next year,' Fagan argued. 'When (Trump) negotiated the renewal of NAFTA (North American Free Trade Agreement) in his first term, he put additional pressure on Canada by putting tariffs... on steel and aluminum that are key products that we export to the U.S.' It's possible, Fagan said, that Trump is carrying out a similar strategy now. 'The only thing that's really stopping him are the courts in the United States,' he said. From the start, Trump's legal justification for the tariffs placed on Canadian goods came through the International Emergency Economic Powers Act (IEEPA), which gives the U.S. president authority to enact economic measures typically reserved for the U.S. Congress. 'There is a significant court case going on now… it's possible that the court will strike (the tariffs) down, but of course this president has a way of kind of working around court decisions… but we should expect that it'll be a bit of a full tilt in 2026,' said Fagan. Canada's next moves Although most Canadian exporters with U.S. customer bases are free to operate without tariffs for the time being, it remains unclear what moves Washington or Ottawa will make next in the ongoing trade conflict. But those industries that export non-CUSMA compliant goods to the U.S. need relief as soon as possible, says John Boscariol, leader of the International Trade and Investment Law Group at McCarthy-Tétrault LLP. 'For our exporters in the steel, aluminum and auto sector and now copper, they continue to face sectoral tariffs, so they are continuing to be hurt by those tariffs,' he told BNN Bloomberg in a Tuesday interview. 'What we are anticipating hopefully is that, as this agreement is being negotiated, we're going to see some kind of deal, some kind of resolution over those sectoral tariffs going forward and that's really how we will judge whether this is a good deal or not.' Many within the Canadian business community had been hoping for a new trade deal before last week's deadline to ease the burden on companies impacted by current tariff rates. But it's unclear if an imminent agreement is in the cards, Fagan noted. 'Conversations are continuing… the (U.S.) president and the prime minister are expected to talk this week,' he said. '(But) I don't expect, and I don't think many people expect a deal to be done soon with regard to Canada and the United States.' Prime Minister Mark Carney has said repeatedly since taking office this spring that Canada needs to diversify its economic partnerships around the world and become less dependent on the U.S. in light of the trade developments this year. But many of those partnerships are still in the early stages, and most Canadian exporters will continue to rely on U.S. markets at least in the near and medium term, Boscariol said. 'There is that opportunity to diversify and certainly the provinces are trying to do their part in reducing provincial barriers but in the short to medium term, we're looking to these trade negotiations to provide some sort of relief or resolution,' he said. While in search of that resolution, Fagan said that Canada's leaders should rely on their strengths, which have always been different than those of their U.S. counterparts. 'Let's be smarter than the U.S. is; we always are in negotiations,' he said, 'that's our superpower and I think we will be in the upcoming negotiations as well.'
Globe and Mail
27 minutes ago
- Globe and Mail
KBRA Affirms Assured Guaranty's AA+ Insurance Financial Strength Ratings with Stable Outlook
Assured Guaranty Ltd. (NYSE: AGO) (together with its subsidiaries, Assured Guaranty) announced that Kroll Bond Rating Agency, LLC (KBRA) has affirmed the AA+ insurance financial strength ratings of Assured Guaranty Inc. (AG) and its insurance subsidiaries, Assured Guaranty UK Limited (AGUK) and Assured Guaranty (Europe) SA (AGE). All the ratings have Stable Outlooks. In its August surveillance report affirming the AA+ ratings of AG, AGUK and AGE, KBRA cited: 'AG's rating reflects its substantial claims-paying resources, strong risk management platform, and leadership position in the financial guaranty market.' 'AG maintains a robust capital position, with claims-paying resources that provide meaningful protection against KBRA's modeled stress-case loss scenarios.' 'The merger of Assured Guaranty Municipal Corp. (AGM) into AG in 2024 has simplified the organizational structure and improved capital and regulatory efficiency.' 'AG's conservative investment approach, experienced management team, and diversified business platform support its ability to manage through credit cycles.' 'Municipal market insured penetration has increased and is currently at its highest levels since 2009.' 'AGUK and AGE are supported by a suite of intra-group financial arrangements with AG, including co-insurance, quota share and excess of loss reinsurance, as well as a net worth maintenance agreement. These agreements are key factors in KBRA's financial strength ratings for both entities.' KBRA also stated that, 'In 2024, AG originated approximately $32 billion in gross par, its highest annual total in over a decade. Growth was led by strong U.S. municipal production and selective participation in international infrastructure and structured finance.' 'We are pleased that KBRA has continued to affirm the AA+ (Stable Outlook) rating for AG and its insurance subsidiaries, AGUK and AGE, citing our robust capital position and strong claims-paying resources along with the company's high-quality insured portfolio and experienced management team, which supports our ability to navigate through credit cycles,' said Dominic Frederico, President and CEO of Assured Guaranty. 'We believe that Assured Guaranty's success reflects the market's appreciation of our consistent record of profitability, diversified business strategy, disciplined underwriting and pricing and the capital-generating power of our proven business model.' Cautionary Statement Regarding Forward-Looking Statements Any forward-looking statements made in this press release, including those regarding growth opportunities for Assured Guaranty, demand for its product, and the strength of Assured Guaranty's capital position, reflect Assured Guaranty's current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, difficulties executing Assured Guaranty's business strategy; those risks and uncertainties resulting from changes in rating agency models or opinions; the adequacy of Assured Guaranty's capital and its ability to manage such capital; Assured Guaranty's positioning for future global underwriting growth, unearned premiums, earnings power and financial strength; difficulties producing and sustaining new business; the benefits of Assured Guaranty's value proposition; adverse credit developments in Assured Guaranty's insured portfolio and the impact of those developments on rating agency models and opinions; insured losses in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures; other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in Assured Guaranty's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of August 5, 2025. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. About Assured Guaranty Ltd. Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. More information on Assured Guaranty Ltd. and its subsidiaries can be found at
