Core Viewpoint - SoundHound AI is expected to report significant revenue growth in its fourth quarter of 2024, driven by increasing demand for its conversational AI platform and strategic partnerships in various sectors [2][4][5]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $33.49 million, indicating a growth of 95.29% compared to the same quarter last year [2]. - The consensus estimate for loss is 11 cents per share, unchanged over the past 60 days, compared to a loss of 6 cents per share in the year-ago quarter [2]. Market Demand and Growth Factors - The performance is likely to benefit from the rising demand for AI-driven customer service solutions, particularly in the restaurant and automotive sectors [5]. - SoundHound's global expansion, especially in China and India, along with partnerships with companies like DayinTec and VE Commercial Trucks, is expected to contribute to growth [6]. Product Offerings and Clientele - SoundHound's products, such as Smart Ordering and Smart Answering, are anticipated to drive revenue growth, particularly in the small and medium-sized business market [7]. - The company has a strong partner base, including Rekor Systems and Lucid Group, enhancing its position in the AI-driven voice technology market [11][12][13]. Competitive Landscape - Despite impressive growth and strong partnerships, increasing competition in the AI market, especially in customer service and voice assistant sectors, may have negatively impacted performance [15]. - SoundHound's stock has underperformed, with a year-to-date decline of 44.8%, compared to a 0.5% decline in the broader Zacks Computer & Technology sector [8]. Valuation and Investment Outlook - SoundHound AI's current Price/Sales ratio is 21.95, significantly higher than its median of 19.41 and the sector's 6.35, indicating a stretched valuation [11]. - The company has a Growth Score of F, suggesting it may not be an ideal investment for growth-oriented investors at this time [17].

Core Insights - SoundHound AI's stock experienced a significant decline of 8.5% in a trading session, reflecting broader market trends with the S&P 500 and Nasdaq Composite also falling [1][2] - The volatility of AI stocks, particularly those with growth-dependent valuations, was exacerbated by concerns over Nvidia's upcoming quarterly results and Microsoft's data center expansion plans [2][3] - Despite a 141% increase in share price over the past year, SoundHound AI's stock has dropped approximately 52.5% in 2025, indicating high volatility and potential for further movement in the near term [3][4] Financial Performance - SoundHound AI has a market capitalization of around $3.7 billion, trading at approximately 22.4 times this year's expected sales, indicating a growth-dependent valuation that carries downside risk [4] - The company raised its full-year sales target for 2024 to between $82 million and $85 million, suggesting a year-over-year sales growth of about 82% [5] - Revenue projections for 2025 are estimated to be between $155 million and $175 million, indicating potential for more than doubling revenue this year [5] Investment Considerations - The recent valuation pullback may present an entry point for investors with high risk tolerance and a positive outlook on SoundHound AI's expansion potential, although it may not be suitable for risk-averse investors [6]

Group 1 - SoundHound AI's stock experienced a significant decline, dropping 8.8% during trading, with a peak decline of 11.9% earlier in the session [1] - The overall tech sector is facing a pullback as investors prepare for Nvidia's fourth-quarter earnings report, which could impact SoundHound AI [2] - Nvidia's upcoming earnings report is highly anticipated and may lead to substantial valuation shifts in AI stocks, including SoundHound AI, due to its forward-looking valuation [2] Group 2 - Nvidia has divested all its shares in SoundHound AI, raising concerns among investors about potential competitive pressures from Nvidia's new AI offerings [3] - SoundHound AI's stock has shown high volatility recently, with its valuation multiples decreasing significantly, yet it still trades at approximately 23 times this year's expected sales [4]

So far, 2025 has not been kind to SoundHound AI (SOUN -10.33%) stock. The speech recognition specialist's shares are down 45% year to date. And the pessimism intensified on Feb. 14 after Nvidia's latest 13F filing with the Securities and Exchange Commission revealed that the chip giant had sold its entire equity stake in SoundHound during the fourth quarter.Yet SoundHound remains a small company pursuing a potentially massive niche, so if things go well, its stock could deliver extraordinary returns. With t ...

Soundhound AI's (SOUN -5.50%) shares skyrocketed as much as 883% last year. However, the artificial intelligence (AI) stock is now down roughly 55% from its peak in late December.You can blame part of this decline on the Federal Reserve. Investors were spooked when the Fed signaled there could be fewer interest rate cuts than expected in 2025. This caused many high-flying growth stocks, including Soundhound AI, to fall.However, another culprit was behind Soundhound AI's plunge of nearly 30% in recent days - ...

SoundHound AI, Inc. (SOUN) ended the recent trading session at $10.90, demonstrating a -1.52% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.47%.Coming into today, shares of the company had lost 32.42% in the past month. In that same time, the Computer and Technology sector gained 0.32%, while the S&P 500 gained 2.6%.Analysts and investors alike will be keeping a clo ...

SoundHound AI TodaySOUNSoundHound AI$11.07 -0.37 (-3.23%) 52-Week Range$3.46▼$24.98Price Target$12.36Add to WatchlistSoundHound NASDAQ: SOUN stock may not have found its February bottom yet, but the odds are high that the market will hit it soon and begin to rebound. That is because of the company’s improving business quality, hypergrowth, valuation, and analysts' sentiment. However, the odds of a new all-time high are slim given the threat of dilution, so investors should expect volatility in 2025 with so ...

Shares of SoundHound AI (SOUN -3.23%) plunged following a revelation that Nvidia (NVDA -0.12%) exited its investment in the voice artificial intelligence (AI) company. The stock is now down more than 40% on the year as of this writing; however, it is up more than 385% over the past year.SoundHound stock was pulled out of obscurity when it was revealed that the semiconductor giant purchased shares in the company in the fourth quarter of 2023. The stock immediately rocketed higher on the news, but it made its ...

SoundHound AI (SOUN -3.23%) stock crashed after Nvidia (NVDA -0.12%) disclosed it sold all of its shares in the innovative growth stock.*Stock prices used were the afternoon prices of Feb. 17, 2025. The video was published on Feb. 19, 2025. ...

Nvidia's (NVDA -0.12%) graphics processors (GPUs) for the data center are the gold standard when it comes to developing artificial intelligence (AI). The company has added $3 trillion to its market capitalization over the last couple of years on the back of surging demand for those chips.Nvidia started spreading some of that wealth by investing in smaller AI stocks at the end of 2023. One of them is a leading developer of conversational AI software called SoundHound AI (SOUN -3.23%), and during 2024, its st ...