Where Is Carl Icahn Prowling Now?

Carl Icahn was on the prowl again, and this time he found himself investing in a 9.3 percent stake in Nuance Communication (NASDAQ:NUAN) — the company suspected to be behind the technology for Apple’s (NASDAQ:AAPL) Siri.

Icahn’s investment was made known Monday in a filing by the billionaire investor. The short-term impact of his investment was a quick boost for the company’s shares. Its stock had dipped sharply in the middle of February from over $24 per share to less than $19 per share. After working its way back up to just over $20 per share, Icahn’s investment helped push it up 7.9 percent to a height of $21.77 Tuesday morning.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

While the short term effects are one thing, the long term impact of a Icahn’s more than $591 million investment could show up in the advancement of Nuance’s choice technology field: voice-recognition technology.

When Apple launched the iPhone 4S with its voice assistant, Siri, on board, Apple had a selling point that not a lot of other company’s had. But, many competitors are now chasing down their own voice-recognition technologies…

Yahoo! (NASDAQ:YHOO) and Google (NASDAQ:GOOG) are both after similar technologies. Yahoo spent $30 million to acquire the news app Summly, which “which uses a genetic algorithm to mimic how a human actually thinks,” according to the companies founder and chief executive officer Marissa Mayer. For its part, Google is working on developing its own technology involving “intelligent computers.”

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

Icahn’s investment in Nuance was for a passive stake, so he will not be engaging in management of the company, which struggled through a technology shift by its health-industry customers in February. Nonetheless, the investment could help the company and shine a light on this technology in general.

Investing Insights: Where Will Dell Go Next?