SoundHound AI Inc (SOUN), a prominent player in the artificial intelligence (AI) solutions market, experienced a significant plummet of 5.4% in its stock price during the intraday trading session on Tuesday.
The decline comes amidst growing concerns about the company's inflated valuation. Despite SoundHound AI's impressive 936% stock surge in 2024, fueled by favorable developments such as outstanding growth, an investment from AI giant Nvidia, and positive analyst coverage, the stock's price-to-sales ratio has skyrocketed to an eye-watering 109 times, substantially higher than AI heavyweight Nvidia's ratio of 31.
As investors grapple with the overvaluation risks, some experts suggest exploring alternative AI stocks like Advanced Micro Devices (AMD). AMD, while underperforming the market in the past year, is poised for a potential turnaround in 2025. With a focus on AI chip production and a growing presence in the AI accelerator and AI PC markets, AMD's revenue and earnings growth are projected to accelerate significantly in the coming year.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。