Nvidia dissolved its stake in the AI voice platform
SoundHound AI Inc (NASDAQ:SOUN) stock is plummeting today, after a regulatory filing showed Nvidia (NVDA) dissolved its stake in the artificial intelligence (AI) voice command platform. SOUN was last seen 23.1% lower at $11.72.
Amid today's sharp drop, options traders are piling in. So far, over 111,000 calls and 87,000 puts have traded hands -- five times the usual intraday volume. The most popular contracts are the weekly 2/14 10-strike put and the July 11 call, with positions being opened at both.
Bearish sentiment has been gaining momentum for weeks. Short interest surged 27.3% in the last month, with the 101.8 million shares sold short making up 30.8% of the stock’s total available float. That’s a massive chunk of bets against a rebound, and should this pressure continue, SoundHound AI stock could see even more downside.
Today's loss puts the security on track for its largest single-session decline since June 2022, when it shed 48.4%. Though it maintains a 193.9% year-over-year lead, the security is 44.3% lower on a year-to-date basis and trading at its lowest level since early December.