We recently compiled a list of the 10 Stocks That Underperformed Last Week. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against the other stocks.

Wall Street's main indices ended in a bloodbath on Friday, as investors soured on a flurry of macroeconomic factors such as concerns over a slowing economy and a sticky inflation that tempered buying appetite.

Friday’s finish saw the Dow Jones decline by 1.69 percent, the S&P drop by 1.71 percent, and the tech-heavy Nasdaq nosedive by 2.20 percent.

Ten companies, in particular, were heavily hit, registering mostly double-digit losses on a week-on-week basis.

We have listed 10 names that performed poorly last week and detailed the reasons behind their declines. Please note that shares performances were based on the companies’ closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.

To come up with last week's biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A software engineer focused on a computer screen, writing code to create a conversational assistant.

SoundHound AI, Inc. (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) dropped its share prices by 6 percent week-on-week to close Friday’s trading at $10.31 apiece versus the $10.97 registered a week earlier as Nvidia Corp.’s exit from the company still lingered among investors.

Last week marks SoundHound AI, Inc. (NASDAQ:SOUN)’s second consecutive week in the red from a $15.6 price on February 7.

Earlier, NVDA submitted a regulatory filing showing its stake positions in various firms. The filing showed a 44-percent reduction in its holdings in British chipmaker Arm Holdings while fully exiting Serve Robotics and SoundHound AI, Inc. (NASDAQ:SOUN).

NVDA being one of the largest chipmakers supporting the development of AI, its stake positions in several companies became a vote of confidence among investors.

Meanwhile, NVDA’s divestment in SoundHound AI, Inc. (NASDAQ:SOUN) raised investor concern over the future of its growth trajectory, particularly as it was once seen as a promising player in the AI industry.

Overall SOUN ranks 10th on our list of the stocks that underperformed last week. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SOUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.