Nvidia, in contrast, has nearly everything AI investors want. It's profitable, it has plenty of room to grow as AI investments expand, and its shares are relatively well priced with a forward price-to-earnings ratio of 34, compared to the tech-heavy Nasdaq-100 's 26.4. For all of those reasons, Nvidia looks like the far better AI stock right now.

SoundHound AI Inc (NASDAQ:SOUN) shares are trading lower Tuesday after the company filed for a mixed shelf offering of up to $500 million.

The beginning of 2025, however, has been a much different story. As of Jan. 20, the stock has fallen more than 31% out of the gate. Whether investors are cashing out their profits from last year or are simply having second thoughts about the stock and its valuation is the big question right now.

SoundHound's fundamentals are strong, with significant revenue growth and narrowed net losses, but the valuation is excessively high. See why SOUN is sell rated.

After a remarkable 2024 in which SoundHound AI (NASDAQ: SOUN) stock surged in price by a stunning 836%, the new year has got off to a disastrous start as the voice artificial intelligence (AI) solutions provider has already lost more than 17% of its value as of this writing and was down as much as 36% earlier in the month.

Shares of conversational artificial intelligence (AI) company SoundHound AI (NASDAQ: SOUN) had jumped by 18.7% this week as of early Friday, according to data from S&P Global Market Intelligence, as investors reacted to two pieces of news.

Down 29.4% in the first two-and-a-half weeks of the New Year, SoundHound AI (Nasdaq: SOUN) stock is off to a rocky start in 2025. One thing you cannot say about SoundHound stock though, is that it’s been boring ride.