Shares of SoundHound AI (SOUN) are seeing heightened trading activity as investors react to news involving Advanced Micro Devices (AMD) and OpenAI (PC:OPAIQ). The deal is fueling speculation about potential collaborations and growth opportunities in the AI space. Traders are closely watching how these developments could impact the company’s technology, partnerships, and market positioning. SOUN stock has gained 1.42% as of writing on Tuesday.
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For context, AMD stock jumped on Monday after news of a deal with OpenAI. Under the agreement, the ChatGPT creator will use up to 6 gigawatts of AMD’s graphics processing units (GPUs) over several years. This deal comes after OpenAI signed a massive $100 billion investment agreement with Nvidia (NVDA) last month to support its next-generation AI models.
What’s Happening with SOUN Stock?
SoundHound’s stock has risen partly due to recent deals involving OpenAI, contributing to broader market momentum. Investors are responding to potential partnerships and technology collaborations that could strengthen the company’s capabilities and market position.
Additionally, the stock benefited from recognition in the IDC MarketScape report. Last week, the company was named a leader in Worldwide Conversational AI Platforms, which helped push its stock up about 10%. The report highlighted high user satisfaction with SoundHound Amelia’s voice AI and praised its ability to understand intent, switch contexts, remember conversations, and handle complex requests.
Over the last five trading days, SOUN stock has gained over 15%. Despite this, the stock is down 7% year-to-date.
Options Traders Signal Bullish Trend in SOUN Stock
SOUN is showing bullish activity, with shares up above $18. Using TipRanks’ Options tool, we can also see Unusual Options Activity for SOUN, which is bullish. This happens when call options are traded more than usual, often showing what big investors are doing and potentially signaling a significant move in the stock.
To simplify, calls are bets that the stock will rise, while puts bet it will fall.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15.33, suggesting a potential downside of 16.64% from the current level.
