Both SOUN and AI have recently outperformed on the charts
In the artificial intelligence (AI) sector, we have Nvidia (NVDA) earnings due out next week, and an update from OpenAI, as its official "blueprint for U.S. AI infrastructure" will be presented in Washington D.C. today. In the meantime, we're checking in with two more AI stocks making waves.
Nvidia-backed stock Soundhound AI Inc (NASDAQ:SOUN) is down 15% at $6.42 at last glance, despite better-than-expected third-quarter results and a hiked forecast. The stock staged a massive rally since the start of the month, and today's report wasn't enough to keep it going. Since the start of the year, the equity is up 201%.
In the options pits, SOUN has seen 106,000 calls and 30,000 puts exchanged so far today -- double the options volume typically seen at this point. The November 7 and 6 calls are the most popular, with new positions being sold to open at the 6.50 call in the same series.
C3.ai Inc (NYSE:AI) stock has staged an explosive rally since its Sept. 5 52-week low of $9, last seen up 2.7% at $28.53 today. The stock has been consolidating around the $28 region for a few sessions, however, which coincides with its year-to-date breakeven level.
We'll see if a continued unwinding of short interest is enough to get AI over the hump, as it still represents 20.6% of the stock's available float, or over six days' worth of pent-up buying power.