Will SoundHound AI Stock Get A Boost From Project Stargate?

SoundHound AI, Inc. (NASDAQ: SOUN) experienced a significant increase in its stock price on Tuesday, fueled by excitement over AI-related investments following the announcement of Project Stargate. This undertaking, led by former President Donald Trump, is a colossal initiative aimed at investing $500 billion in AI infrastructure. Notable companies involved include Oracle Corp (ORCL), OpenAI, Nvidia, and SoftBank Capital.

Project Stargate Overview: Project Stargate has garnered commitments of $100 billion for immediate investments, with an additional $400 billion anticipated over the next four years. According to Larry Ellison, the CEO of Oracle, the initiative includes plans for 20 new data centers, the first of which is currently under construction in Texas.

The announcement led to considerable gains in stocks of major tech firms involved in AI, including Nvidia Corp. (NVDA) and Arm Holdings Plc (ARM).

SoundHound AI’s Response: SoundHound AI shares surged by over 21% on Tuesday, though there was a slight pullback observed on Wednesday. Analysts have optimistic views, with the latest ratings suggesting a price target averaging $20, indicating a 24% potential increase.

Furthermore, SoundHound AI's products, such as SoundHound Chat AI and other voice AI solutions, stand to gain from the growing adoption of AI technologies across various industries. The development of extensive data centers under Project Stargate may expedite the growth of artificial intelligence, optimizing resources to meet the hefty computational requirements of AI workloads.

Partnerships and Innovations: In a separate announcement on the same day, SoundHound disclosed a collaboration with Rekor Systems, Inc. (REKR). This partnership aims to merge SoundHound's voice AI technology with Rekor's vehicle recognition software. The goal is to improve emergency vehicle communication by providing real-time voice-enabled alerts for critical notifications, such as wanted vehicles and Amber Alerts.

Current Price Movement: As per the latest data, SoundHound AI shares saw a decline of 3.39%, trading at $15.96 at the time of this report.

AI, Investment, Stocks