SoundHound AI stock crashes 23% as Nvidia dumps entire stake – What it means for investors and the AI market

SoundHound AI stock plummeted 23.1% to $11.72 after Nvidia (NVDA) sold its entire stake in the AI-powered voice technology company. Nvidia previously held 1.7 million shares worth over $8 million, but its sudden exit led to a market sell-off, raising concerns about SoundHound AI's future. Nvidia’s move aligns with its investment shift toward self-driving and AI cloud firms like WeRide Inc. and Nebius Group N.V..