SoundHound AI (SOUN -8.73%) stock was selling off again in Monday's trading. The conversational artificial intelligence (AI) company's shares were down 8.8% as of 2:40 p.m. ET after having been down by as much as 11.9% earlier in the session.

Tech stocks generally were pulling back as investors braced themselves for Nvidia's fourth-quarter earnings release on Wednesday. That report and conference call could have implications for SoundHound AI on multiple levels.

Nvidia's earnings on deck

Nvidia will publish this earnings season's most anticipated report this week, and investors are taking a moderately more cautious approach to AI stocks ahead of its release. The report could send valuation shock waves throughout the broader market, and AI stocks will likely see outsized movements, depending on how the chipmaker's earnings performance and guidance come in. As a mid-cap AI stock with a heavily forward-looking valuation, SoundHound AI could see a large valuation shift.

Is Nvidia about to change the outlook on SoundHound AI?

Nvidia had been an investor in the conversational AI specialist, but its most recent 13F filing revealed that it sold all of its SoundHound stock during the fourth quarter. That added to investors' concerns that the tech giant might be planning to encroach on SoundHound's turf. Nvidia's report and conference call could highlight new agentic AI offerings that would put new competitive pressures on SoundHound.

SoundHound AI stock has been highly volatile lately, and that trend looks poised to continue this week. The company's valuation multiples have come down a lot from their highs, but it's still trading at roughly 23 times this year's expected sales.