The impressive news from a high-profile business partner was one of the main reasons for the share price increase experienced by SoundHound AI (NASDAQ: SOUND) on Thursday. The artificial intelligence (AI) company rose nearly 9% in late trading, a rate that easily surpassed the 0.8% gain of the S&P 500 (SNPINDEX: ^GSPC).
That news was quarterly results released after market hours on Wednesday by the leading graphics card processor company. NVIDIAwhose cutting-edge hardware products are widely used in the burgeoning artificial intelligence industry.
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Fortunately for that industry, not to mention its shareholders, Nvidia did very well in the third quarter of its fiscal 2025. It managed to nearly double its already considerable revenue year over year, to more than $35 billion. and somehow surpass that with a 103% improvement in net income per share (which reached $0.81). Both figures were comfortably above analysts’ consensus estimates.
This positively affects SoundHound AI in two important ways. First, it clearly illustrates that there is more than enough demand for AI capabilities of all kinds to sustain the companies that supply the hardware that makes the technology possible. Secondly, and more directly, Nvidia is an investor in SoundHound AI; As of September 30, the first company owned more than 1.7 million shares of the second.
That happy development with Nvidia’s results wasn’t the only reason the market was doing well on SoundHound AI on Thursday: the company had some good news to report.
That morning, it said in a press release that its AI “agents” had helped one of its clients, insurer Apivia Courtage, handle more than 100,000 customer queries. SoundHound AI added that this had reduced the number of incoming requests handled by Apivia’s customer relations specialists by 20%.
Both developments were unequivocally positive for SoundHound AI and should boost the company’s profile. At this time, it is not considered one of the most impactful or influential AI businesses on the market.
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