Why SoundHound AI's Stock Is Plummeting Today

Group 1 - SoundHound AI's stock experienced a significant decline, dropping 8.8% during trading, with a peak decline of 11.9% earlier in the session [1] - The overall tech sector is facing a pullback as investors prepare for Nvidia's fourth-quarter earnings report, which could impact SoundHound AI [2] - Nvidia's upcoming earnings report is highly anticipated and may lead to substantial valuation shifts in AI stocks, including SoundHound AI, due to its forward-looking valuation [2] Group 2 - Nvidia has divested all its shares in SoundHound AI, raising concerns among investors about potential competitive pressures from Nvidia's new AI offerings [3] - SoundHound AI's stock has shown high volatility recently, with its valuation multiples decreasing significantly, yet it still trades at approximately 23 times this year's expected sales [4]