The main factor investors are focused on in today's market is SoundHound AI 
early clouds. SOUN stock price rose about 10% in afternoon trading following the small news. However, investors are noticing that certain artificial intelligence (AI) stocks are also improving today, as investor sentiment appears to be becoming more bullish.
Last week's crash for SoundHound and many similar companies focused on AI was bad. After trading around the $4 per share level for much of last week, SOUN stock ended the week near the $3.50 level. Today's rally above the key $4 level suggests that traders and investors are adjusting their positions accordingly.
Other AI stocks including Nvidia 
NVDA and super micro 
SMCI, a similar movement can be seen. Both suffered declines that continued into the close of trading yesterday.
Let's take a closer look at this move and see what today's price action tells us.
SOUN stock soars due to change in sentiment
SOUN stock's rise this year has been truly astonishing, going from around $2 at the beginning of the year to more than $10 per share at its peak in March. In other words, a significant reduction in valuation has already materialized in this case.
Investors have clearly been trying to understand the real, fundamental impact that the surge in AI demand will have on companies like SoundHound over the past few weeks. In fact, as a leading provider of voice AI services to a variety of customers, this stock is about as pure an investment as you can get in this space. In this regard, the rally investors saw earlier this year could be explained by the moves seen in many other pure-play AI stocks, such as Nvidia and Supermicro.
Each of these companies remains unique in its products, services, and the markets in which it serves. SoundHound is certainly one of the most speculative stocks in its space, with a much more uncertain growth profile than its peers. That's not to take anything away from today's impressive bull market. That's just an observation.
We don't know if this rally will continue, but broader sentiment towards the sector appears to be becoming more constructive. I wouldn't be surprised if traders and momentum investors return to this name and SOUN stock becomes a stock to watch in the coming weeks.
On the date of publication, Chris McDonald did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
Chris MacDonald loved investing so much that he earned an MBA in Finance and held numerous management positions in corporate finance and venture capital over the past 15 years. His past experience as a financial analyst, combined with his passion for finding undervalued growth opportunities, contributes to his conservative, long-term investment view.
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