SoundHound AI, Inc. (NASDAQ:SOUN) shares soared on Tuesday as AI-related stocks got a boost after President Donald Trump announced Project Stargate, a massive $500 billion AI infrastructure investment initiative featuring Oracle Corp. (NYSE:ORCL), OpenAI, Nvidia and SoftBank Capital.
What To Know: Project Stargate and its backers have committed $100 billion for immediate investment, with up to $400 billion in additional investments expected to take place over the next four years. Larry Ellison, CEO of Oracle, said that 20 data centers are planned under Project Stargate with the first currently under construction in Texas.
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The stocks of Nvidia Corp. (NASDAQ:NVDA), Arm Holdings Plc (NASDAQ:ARM) and other AI names rose following the Project Stargate announcement.
SoundHound AI stock gained more than 21% Tuesday, though shares are pulling back slightly on Wednesday. The three most-recent analyst ratings have an average price target of $20, implying a 24% potential upside for the stock.
SoundHound Chat AI and the company’s other voice AI solutions could benefit as industries adopt AI technologies. Project Stargate may accelerate the development and adoption of artificial intelligence as data centers are built to support intense computational demands of AI workloads.
SOUN Price Action: According to data from Benzinga Pro, SoundHound AI shares are down 3.39% at $15.96 at the time of publication Wednesday.
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