AI Stocks Trade Mixed After Last Week's Sell-Off

Tiger Newspress
03-03

AI stocks mixed in premarket trading Monday after last week's sell-off. Nvidia fell 1%; while BigBear.ai rose 10%; SoundHound AI and Palantir rose 2%; C3.ai and Tempus AI rose 1%.

AI stocks tumbled last week as disappointment with Nvidia earnings and fresh tariff rhetoric from US President Donald Trump pressured the market. While Nvidia reported impressive profits, with investors seemingly wanting more from the artificial intelligence company.

BigBear.ai will release quarterly results after the market closes on Thursday. BigBear.ai has been securing deals with the federal government, as that has the potential to be a big growth catalyst for its business as well. On Feb. 5, it announced that it won a contract with the Department of Defense, which will help with geopolitical risk analysis.

SoundHound AI rose another 2% after a 17% rally last Friday after the company reported stronger-than-expected fourth-quarter financial results yesterday following the closing of the market. The company also increased its 2025 revenue guidance.

The company's per-share loss of 5 cents, excluding certain items, compared with analysts' average estimate of a per-share loss of 8 cents. SOUN's revenue jumped 101% versus the same period a year earlier to $34.5 million. The latter figure was $840,000 above analysts' mean estimate.

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