SoundHound AI Stock Climbs on News of NVIDIA CEO's Decade-Long Mentorship
Voice AI company's 217% revenue surge linked to Jensen Huang's guidance and a strategic investment from the chipmaking giant.
Shares of SoundHound AI Inc. (SOUN) jumped over 7% following revelations that NVIDIA CEO Jensen Huang has been mentoring the company's founder, Keyvan Mohajer, for the past decade. The close relationship, which began when SoundHound was a dorm-room startup at Stanford, has been credited as a major factor in the voice AI company's explosive growth and recent record-breaking financial performance.
The mentorship involved hands-on guidance from Huang, who is known for his demanding leadership style. Mohajer recounted receiving research papers from the NVIDIA chief on Sunday mornings, a practice that shaped his own approach to innovation and strategy. This deep-rooted connection culminated in NVIDIA taking a significant stake in the company, purchasing 1.73 million shares and solidifying the partnership between the two AI pioneers.
The strategic guidance appears to be paying substantial dividends. SoundHound AI recently reported its , with second-quarter sales soaring 217% year-over-year to $42.68 million, handily beating market estimates. The company also narrowed its adjusted losses and raised its full-year revenue forecast to a range of $160 million to $178 million, signaling strong confidence in its continued momentum.
This potent combination of industry mentorship and stellar financial results has caught the attention of Wall Street. Analysts have turned increasingly bullish on SoundHound's prospects, with firms like Ladenburg Thalmann and Wedbush Securities recently upgrading the stock and raising their price targets. The has de-risked the investment for many, who now see a clearer path to profitability and market leadership in the competitive voice AI space. For investors, the success of SoundHound AI serves as a powerful case study on how strategic guidance from an industry titan can transform a promising startup into a multi-billion dollar powerhouse.