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Yahoo
16-05-2025
- Business
- Yahoo
Did Nvidia Make a Colossal Mistake by Selling SoundHound AI Stock?
SoundHound AI stock surged by almost 30% since the company reported its financial results for the first quarter of 2025. Nvidia owned 1.73 million shares in SoundHound AI, but the chip giant sold its entire stake toward the end of 2024. SoundHound's business is growing rapidly, but that doesn't mean Nvidia made the wrong move by selling the stock. 10 stocks we like better than SoundHound AI › Nvidia (NASDAQ: NVDA) added an eye-popping $2.8 trillion to its market capitalization since the start of 2023, thanks to soaring demand for its data center chips that are the best in the world for developing artificial intelligence (AI). The company also invested in a portfolio of other AI stocks, and SoundHound AI (NASDAQ: SOUN) was one of them. SoundHound is a specialist in conversational AI, and it has an impressive list of customers that includes some of the biggest brands in the world from industries like hospitality and car manufacturing. But when Nvidia filed its 13-F with the Securities and Exchange Commission for the final quarter of 2024, SoundHound stock was notably missing -- it turns out the chip giant sold its entire stake toward the end of last year. SoundHound recently reported its latest financial results for the first quarter of 2025 (ended March 31), and its stock soared by almost 30% since. Did Nvidia sell its position too early? SoundHound's conversational AI technology understands voice prompts and can respond in kind, and it has been deployed by some of the biggest businesses in the world to transform the way we interact with our devices, our cars, and even our favorite restaurants. SoundHound is active in almost 13,000 quick-service restaurants, operated by chains like White Castle, Chipotle, and Papa John's. Its Voice AI technology can autonomously take orders from customers over the phone, in-store, and in the drive-thru, reducing the workload on employees so they can spend more time on other tasks. SoundHound also offers a product called Employee Assist, which stands ready to provide workers with information on menu items and in-store procedures. In the automotive industry, SoundHound's Chat AI in-car voice assistant is used by top brands like Hyundai, Kia, and Stellantis (the owner of Chrysler, Jeep, and Dodge). It can answer questions on a broad range of topics, and it can also provide-real time information on sports scores and stock prices. SoundHound also launched a new platform called Voice Commerce earlier this year, which allows drivers to place food orders from the comfort of their vehicle. It can even recommend restaurants and provide directions using the car's GPS system. SoundHound expanded its product portfolio even further when it acquired another AI company called Amelia in August last year. Amelia's platform allows businesses to create custom AI agents that can be deployed to serve customers or even help employees with specific tasks. It's used in industries like healthcare, financial services, insurance, and more, which is helping SoundHound diversify its revenue base. SoundHound generated $29.1 million in total revenue during the first quarter of 2025, which was a whopping 151% increase from the year-ago period. The inclusion of Amelia's revenue boosted the result, but the company also continued to experience broad demand for its core products. Management is no longer updating investors on SoundHound's order backlog, but CFO Nitesh Sharan said it continued to grow from the previous quarter three months earlier, when it was an eye-popping $1.2 billion. The company expects to convert that backlog into revenue over a period of six years, so it could be a great predictor of future top-line results. The strong first-quarter results prompted SoundHound to reaffirm its full-year guidance for 2025, suggesting revenue could soar 97% year over year to $167 million (at the midpoint of the forecasted range). Nvidia never disclosed why it sold SoundHound stock, but its current valuation is one reason investors might want to steer clear for now. It trades at a price-to-sales (P/S) ratio of 40.8 as of this writing, which makes it significantly more expensive than Nvidia itself. That doesn't make much sense considering the AI chip giant is one of the highest-quality companies in the world, with a track record of success spanning decades: SoundHound stock looks a little less expensive if we value it using its future potential revenue. If we assume the company generates $167 million this year as management expects, that places its stock at a forward P/S ratio at 27.1. But considering that figure is still higher than Nvidia's P/S ratio today, I definitely wouldn't say the stock looks attractive. Plus, SoundHound's bottom line poses a key risk. The company generated a rare profit of $129 million on a generally accepted accounting principles (GAAP) basis during the first quarter, but only because of a $176 million benefit relating to one of its acquisitions. On a non-GAAP basis, which excludes one-off and non-cash components, SoundHound still lost $22.3 million, which was a 10% increase from the year-ago period. SoundHound had $246 million in cash and equivalents on hand at the end of the quarter, so it can afford to keep losing money at the current pace for the next couple of years. However, if the company does require more cash in the future, it might have to issue more stock, which would result in significant dilution for existing shareholders. Nvidia only held 1.73 million shares in SoundHound, which would have been worth just $19.5 million based on its current stock price. Considering Nvidia is nearly a $3.3 trillion company, even a complete loss probably wouldn't have affected its finances at all. Even though we don't know why Nvidia sold its entire stake, SoundHound's valuation is enough reason for investors to tread very carefully if they are looking to buy. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Nvidia. The Motley Fool recommends Stellantis and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Did Nvidia Make a Colossal Mistake by Selling SoundHound AI Stock? was originally published by The Motley Fool
Yahoo
14-03-2025
- Business
- Yahoo
Voice Commerce Industry Revenues to Grow by $100 Billion by 2030: Assessment of the Global Market with Detailed Profiles of 34 Companies, Including Amazon.com, Apple, Microsoft Corp., Twilio, Sonos & More
Expansion of AI Capabilities Enhances Personalization and Recommendation Accuracy Voice Commerce Market Dublin, March 14, 2025 (GLOBE NEWSWIRE) -- The "Voice Commerce - Global Strategic Business Report" has been added to global market for Voice Commerce was valued at US$49.6 Billion in 2024 and is projected to reach US$147.9 Billion by 2030, growing at a CAGR of 20% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. What are the Growth Drivers for the Voice Commerce Market?The growth in the voice commerce market is driven by several factors, including the increasing penetration of smart speakers and the widespread adoption of smartphones, which are equipped with voice assistants. As technology literacy improves and consumers become more comfortable with voice-activated devices, there is a natural progression towards using these devices for shopping. The convenience of hands-free shopping and the ability to make purchases on-the-go appeal particularly to busy consumers who value efficiency and speed. Retailers are also recognizing the potential of voice commerce to provide enriched customer data and insights, allowing for more targeted marketing and improved customer engagement. Moreover, as voice recognition technology continues to advance, becoming more adept at understanding and processing diverse languages and accents, the accessibility and user-friendliness of voice commerce are expected to increase, thereby driving further adoption. The integration of voice commerce into omnichannel retail strategies is seen as a critical factor in enhancing customer experiences and boosting retail sales, marking voice commerce as a significant trend in the evolution of digital Challenges does Voice Commerce Face in Widespread Adoption?Despite its growing popularity, voice commerce faces several challenges that could hinder its widespread adoption. One of the primary concerns is the issue of privacy and security; users are understandably wary about the potential misuse of sensitive information transmitted through voice commands. There is also skepticism regarding the accuracy of voice recognition systems, especially in noisy environments or among users with heavy accents. Moreover, the current technology is limited in its ability to handle complex transactions that require browsing through extensive catalogs or performing detailed comparisons. These limitations necessitate ongoing technological enhancements and robust security measures to build trust and provide a seamless shopping experience. Additionally, educating consumers about the capabilities and benefits of voice commerce is crucial to overcoming resistance to this new way of ScopeThe report analyzes the Voice Commerce market, presented in terms of market value (USD). The analysis covers the key segments and geographic regions outlined (Personal Care Application, Electronics Application, Household Appliances Application, Groceries Application, Other Applications).Geographic Regions/CountriesWorld; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Insights: Market Growth: Understand the significant growth trajectory of the Personal Care Application segment, which is expected to reach US$50.6 Billion by 2030 with a CAGR of a 22.6%. The Electronics Application segment is also set to grow at 20.3% CAGR over the analysis period. Regional Analysis: Gain insights into the U.S. market, valued at $13.3 Billion in 2024, and China, forecasted to grow at an impressive 28.2% CAGR to reach $39.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific. Report Features: Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030. In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa. Company Profiles: Coverage of players such as Agora, Inc., Algolia, Inc., Inc., Apple, Inc., Edrone sp. z o.o. and more. Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments. Key Questions Answered: How is the Global Voice Commerce Market expected to evolve by 2030? What are the main drivers and restraints affecting the market? Which market segments will grow the most over the forecast period? How will market shares for different regions and segments change by 2030? Who are the leading players in the market, and what are their prospects? Some of the 34 companies featured in this Voice Commerce market report include: Agora, Inc. Algolia, Inc. Inc. Apple, Inc. Edrone sp. z o.o. iAdvize SAS Microsoft Corp. Rep AI Technologies SilverClouding Consultancy Pvt. Ltd. Sonos, Inc. SoundHound AI, Inc. Twillo, Inc. Vivoka Voicify LLC Ltd. Key Attributes Report Attribute Details No. of Pages 181 Forecast Period 2024-2030 Estimated Market Value (USD) in 2024 $49.6 Billion Forecasted Market Value (USD) by 2030 $147.9 Billion Compound Annual Growth Rate 20% Regions Covered Global MARKET OVERVIEW Influencer Market Insights World Market Trajectories Global Economic Update Voice Commerce - Global Key Competitors Percentage Market Share in 2025 (E) Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E) MARKET TRENDS & DRIVERS Advancements in Natural Language Processing Enhance User Interaction Rising Popularity of Smart Speakers Drives Adoption of Voice Shopping Integration of Voice Commerce with Omni-Channel Strategies Bolsters Customer Experience Increasing Consumer Comfort with Voice-Activated Devices Spurs Market Growth Expansion of AI Capabilities Enhances Personalization and Recommendation Accuracy Growing Focus on Hands-Free Operations Propels Voice Command Adoption Privacy and Security Enhancements Strengthen Trust in Voice Transactions Expansion of Voice Commerce in Multilingual Markets Opens New Opportunities Rising Mobile Device Usage Accelerates Adoption of Voice-Assisted Shopping Evolving Consumer Behavior Towards Contactless Interactions Boosts Voice Commerce For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Voice Commerce Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
