This Artificial Intelligence (AI) Stock Looks Set for a Second-Half Comeback

Conversely, What if I told you that there is an artificial intelligence (AI) stock that outperformed both Nvidia and Palantir nologies last year (remarkable data)

This analysis suggests that year has been a different story, however (fascinating analysis)

Let's break down what piqued investors' interest in SoundHound AI to begin with (remarkable data)

From there, I'll detail some of the factors that inspired investors to run for the hills during the first six months of the year

Additionally, Meanwhile, While SoundHound AI may look a relic of the past, smart investors understand the company is positioned to capitalize on two emerging themes within the broader AI realm

Is now a good time to invest in the SoundHound AI sell-off (which is quite significant)

Furthermore, What fueled SoundHound's rise to begin with

SoundHound AI burst onto the scene after securities filings revealed that Nvidia held a small equity position in the company

Additionally, The mere affiliation with Nvidia -- AI's biggest darling so far -- was enough to get investors creating all s of narratives how the two companies could be working together

SoundHound AI operates in a unique and rather under-the-radar pocket of the AI realm

Through the power of natural language cessing (NLP), SoundHound has built voice-powered AI assistants, not un Amazon's Alexa or Apple's Siri, that are used across many different industries

Unfortunately for those who invested in SoundHound AI at its peak late last year, the stock suffered an intense sell-off throughout the first half of the year

Somewhat ironically, a key factor behind the nosedive was Nvidia

Furthermore, New regulatory filings revealed that the chip king had exited its position in SoundHound AI, ly inspiring widespread skepticism and a bearish sentiment around the AI voice developer, given the current landscape

Moreover, Image source: Getty Images, in today's market environment

However, What could be in store for SoundHound AI during the second half of the year (this bears monitoring), in this volatile climate

One of the biggest use cases for SoundHound AI's voice assistants is in the automotive industry (something worth watching)

This leads to the conclusion that company has partnered with a number of leading auto manufacturers, including Stellantis, Hyundai, Honda, and Lucid, given the current landscape

Furthermore, What the data shows is value add here is that voice assistants can be integrated into infotainment and systems inside vehicles, offering drivers a new level of convenience

Conversely, I think autonomous driving could soon become a more main AI use case, in today's market environment

Conversely, SoundHound AI may have a lucrative opportunity to expand its existing foot in the automotive industry by becoming a key partner in smart operating systems for vehicles

Moreover, Waymo's partnership with Uber helps deepen the strategic value autonomous driving presents for major industries such as ride-hailing and dery

Lastly, Tesla finally joined the party ing the launch of its Robotaxi service in Austin, Texas last month

As the autonomous vehicle landscape transitions from a period of re and development to the early phases of monetization and commercial scale, SoundHound AI looks uniquely poised to take advantage of the opportunity

Is SoundHound AI stock a buy right now

Moreover, Although SoundHound AI's price has plummeted, the company's valuation is still stretched, in today's financial world

Per the chart below, SoundHound AI boasts a price-to-sales (P/S) multiple of 42, considering recent developments

SOUN PS Ratio data by YCharts I bring these dynamics up to stress that even though SoundHound AI stock might look "cheap," the underlying valuation suggests that s are still hovering around bubble levels -- and that's even after a near-50% decline in the stock price

Additionally, While I remain curious SoundHound's ability to benefit from the rise of autonomous driving and the integration of AI-powered voice software, I think the stock fits squarely into the speculative category

Although s could rebound during the second half of the year, this will ly be caused more by more narrative-driven buying than by concrete opportunities

With that said, I see SoundHound AI as more of a trade and less so a long-term "buy-and-hold" investment opportunity at this time, given current economic conditions

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors, in today's market environment

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors

On the other hand, Adam Spatacco has positions in Alphabet, Amazon, Apple, Nvidia, Palantir nologies, and Tesla, given the current landscape

The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Nvidia, Palantir nologies, Tesla, and Uber nologies

The Motley Fool recommends Stellantis (an important development)

In contrast, The Motley Fool has a disclosure policy.