SoundHound’s stock plunged more than 28% after Nvidia revealed it had sold its entire stake in the voice recognition AI company.
SoundHound shares dropped 28.10% on Friday, closing at $10.97 on the New York Stock Exchange.
The steep decline followed Nvidia’s disclosure in a Securities and Exchange Commission (SEC) filing that it had fully divested its investment in SoundHound.
Last year, SoundHound’s stock had soared after news of Nvidia’s initial investment.
The sharp reversal suggests Nvidia may have decided to take profits after a strong rally in SoundHound’s share price.
Despite this setback, SoundHound’s stock has remained at 386% over the past year.