March 1 (Reuters) - Shares of SoundHound AI Inc slumped as much as 25% on Friday after the AI voice provider posted a downbeat quarter, taking some shine off a bumper rally last month fueled by surging interest in artificial intelligence.

The stock surged 350% in February, marking its best-ever monthly gain, after AI poster child Nvidia's blowout forecast sparked a rally in AI-related firms and the broader U.S. stock market.

The company, which has received a near $3.7 million investment by Nvidia, late on Thursday posted fourth-quarter revenue of $17.15 million, slightly below analysts' estimate of $17.75 million.

Net loss of $0.07 per share was bigger than expectation for a loss of $0.06, as per LSEG data.

The midpoint of its 2024 revenue forecast of $63 million-$77 million was above Wall Street estimates.

On Thursday, C3.ai's strong third-quarter results and full-year revenue forecast had strengthened the AI stocks rally. The AI software firm's shares were down nearly 2% after a 49% jump in February.

Still, D.A. Davidson maintained a "buy" rating and raised the price target to $7.5 from $5.0, saying "SoundHound is winning market share and has customers knocking at its doors."

SoundAI shares were down 23% at $5.7 before the bell.

(Reporting by Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila)