What Happened?
Shares of voice AI technology company SoundHound AI (NASDAQ: SOUN) jumped 3.3% in the morning session after the company announced that its generative AI-powered voice assistant, SoundHound Chat AI Automotive, is now live in select Jeep vehicles across several European markets.
This integration provides Jeep drivers and passengers with an advanced level of convenience and connectivity by blending in-vehicle controls with the power of generative AI. The technology allows users to go beyond basic commands and engage in more complex, conversational interactions, such as planning a trip, accessing information from the vehicle's manual, or asking follow-up questions. The rollout signifies a key production deployment for SoundHound's conversational AI technology within the automotive industry.
After the initial pop the shares cooled down to $12.18, up 0.5% from previous close.
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What Is The Market Telling Us
SoundHound AI’s shares are extremely volatile and have had 90 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 3.2% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
SoundHound AI is down 39.6% since the beginning of the year, and at $12.18 per share, it is trading 49.7% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $1,624.
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