50 basis point rate cut may negatively impact SoundHound Inc. due to increased AI investments by tech giants.

The Federal Reserve's recent 50 basis point rate cut may negatively impact SoundHound Inc. (SOUN) as larger tech firms like IBM, Apple, and Alphabet are poised to increase their AI investments. While the AI market is rapidly expanding, SoundHound faces capital constraints, limiting its ability to compete. With reduced R&D spending and a smaller market cap, it may struggle to keep pace with better-funded competitors in the evolving AI landscape.