SoundHound AI (NASDAQ:SOUN) Trading 3.7% Higher – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded up 3.7% on Tuesday . The company traded as high as $7.97 and last traded at $7.82. 39,380,295 shares traded hands during mid-day trading, an increase of 43% from the average session volume of 27,467,664 shares. The stock had previously closed at $7.54.

SoundHound AI News Summary

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Strategic enterprise channel: Experis (ManpowerGroup) named SoundHound its conversational AI technology partner as part of a new EXCELERATE AI services suite — this gives SoundHound an enterprise services distribution partner and a route to large corporate deals that could accelerate adoption and recurring revenue. Read More.
• Positive Sentiment: Automotive differentiation — SoundHound unveiled a multimodal, multilingual Agentic+ platform that runs entirely on-device (voice + vision + local reasoning) at NVIDIA GTC, positioning it as a privacy-focused, low-latency solution for automakers and in-car assistants — a clear product differentiator if OEMs adopt it. Read More.
• Positive Sentiment: Platform expansion for commercial use cases — SoundHound rolled out new voice-powered technologies aimed at retail, enterprise automation and voice commerce, expanding addressable markets and the case for being a layer in customers’ core workflows. Read More.
• Neutral Sentiment: Market reaction is uncertain and may be event-driven — coverage discussing how investors may respond to the on-device auto platform suggests upside depends on OEM partnerships and pilots actually converting to contracts; this is a potential catalyst but not an immediate revenue guarantee. Read More.
• Negative Sentiment: Analyst caution on margins and competition — a Zacks piece notes rapid top-line growth but warns of rising competition, widening loss estimates and execution risks; those factors can keep sentiment and valuation under pressure despite product traction. Read More.
• Negative Sentiment: Valuation/legacy drawdown risk — commentary noting SOUN is down roughly two-thirds from prior highs highlights investor wariness and the risk that, absent visible margin improvement or large contract wins, the stock could remain volatile. Read More.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SOUN. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 price target on shares of SoundHound AI in a report on Thursday, January 8th. Finally, Piper Sandler reiterated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Trading Up 3.7%

The company has a market capitalization of $3.29 billion, a P/E ratio of -156.37 and a beta of 2.65. The stock’s fifty day moving average is $9.00 and its 200 day moving average is $12.47.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The company had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. During the same period in the prior year, the business posted ($0.05) earnings per share. SoundHound AI’s revenue for the quarter was up 59.4% on a year-over-year basis. On average, analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 29,676 shares of the firm’s stock in a transaction on Friday, January 9th. The stock was sold at an average price of $12.00, for a total value of $356,112.00. Following the completion of the sale, the chief technology officer owned 544,179 shares of the company’s stock, valued at $6,530,148. This trade represents a 5.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the sale, the chief financial officer owned 1,705,148 shares in the company, valued at approximately $19,234,069.44. This trade represents a 3.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 460,922 shares of company stock worth $5,199,073. Corporate insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Kieckhefer Group LLC grew its holdings in shares of SoundHound AI by 47.2% during the 3rd quarter. Kieckhefer Group LLC now owns 259,000 shares of the company’s stock worth $4,165,000 after acquiring an additional 83,000 shares during the period. Osaic Holdings Inc. boosted its position in shares of SoundHound AI by 14.0% during the second quarter. Osaic Holdings Inc. now owns 498,691 shares of the company’s stock valued at $5,351,000 after purchasing an additional 61,212 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its position in shares of SoundHound AI by 252.8% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company’s stock valued at $3,519,000 after purchasing an additional 156,835 shares in the last quarter. Fluent Financial LLC purchased a new stake in SoundHound AI in the third quarter worth $1,083,000. Finally, Carnegie Investment Counsel grew its stake in SoundHound AI by 13.7% in the third quarter. Carnegie Investment Counsel now owns 1,363,405 shares of the company’s stock worth $21,924,000 after purchasing an additional 164,725 shares during the period. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.