On Thursday, SoundHound AI's share value was noticeably increasing.
Exciting news from a prominent business associate significantly contributed to the boost in stock value for SoundHound AI (SOUN 0.89%), observed on Thursday. This AI firm witnessed a surge of around 9% during after-hours trading, surpassing the 0.8% increase of the S&P 500 (^GSPC -0.54%).
Leading the pack
The remarkable news in question was the financial reports revealed following the market close on Wednesday by the leading graphics card processor corporation, Nvidia. Known for delivering innovative hardware products that are extensively utilized in the rapidly expanding AI sector, Nvidia reported impressive results for the third quarter of their fiscal 2025.
The company managed to almost double its already substantial revenue compared to the previous year, amassing over $35 billion. Moreover, its net income per share surged by 103%, reaching $0.81. Both figures surpassed the forecasts set by analysts.
This favorable outcome benefitted SoundHound AI in two crucial aspects. Firstly, it underscores the significant demand for various AI functionalities, thereby ensuring a sustainable market for hardware manufacturers who enable such technology. Secondly, and more specifically, Nvidia serves as an investor in SoundHound AI, holding more than 1.7 million shares of the latter as of September 30.
Catalysts of change
The optimistic outlook towards Nvidia's results wasn't the sole reason for SoundHound AI's market popularity on Thursday. In fact, the company had some encouraging news of its own.
Earlier in the day, SoundHound AI announced in a press release that its AI "agents" had been instrumental in assisting a client, Apivia Courtage, in handling over 100,000 customer inquiries. Furthermore, the number of inbound inquiries handled by Apivia's customer relations specialists decreased by 20%.
Both of these events painted a positive picture for SoundHound AI, further enhancing the company's presence in the market. At present, SoundHound AI is not regarded as one of the influential or transformative AI businesses, and this development should help change such perceptions.
The inflated revenue and net income per share reported by Nvidia in their third quarter fiscal 2025 results attracted significant attention from investors, leading to potential opportunities for money management and finance strategies, including investing in AI-related companies like SoundHound AI.
Furthermore, Nvidia's 103% increase in net income per share and over $35 billion in revenue for the third quarter of fiscal 2025 served as a strong signal of the company's financial strength and commitment to investing in innovative technologies, boosting investor confidence in AI-focused companies, such as SoundHound AI.
