SoundHound AI (NASDAQ:SOUN) Shares Up 3.7% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) 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 trading, an increase of 43% from the average session volume of 27,467,664 shares. The stock had previously closed at $7.54.

Key Headlines Impacting SoundHound AI

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.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on SOUN. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. DA Davidson set a $14.00 target price on SoundHound AI in a report on Thursday, January 8th. Piper Sandler restated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $13.00 to $15.00 in a report on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The company has a market capitalization of $3.29 billion, a price-to-earnings ratio of -156.37 and a beta of 2.65. The business’s 50-day moving average price is $9.00 and its two-hundred day moving average price is $12.47.

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

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 29,676 shares of SoundHound AI stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the transaction, 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 filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Michael Zagorsek sold 73,406 shares of the business’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the transaction, the chief operating officer owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 460,922 shares of company stock worth $5,199,073. 9.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. grew its position in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its holdings in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after buying an additional 1,544 shares during the last quarter. Danske Bank A S bought a new position in shares of SoundHound AI in the third quarter valued at $26,000. Advisors Asset Management Inc. grew its holdings in shares of SoundHound AI by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after buying an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management acquired a new position in shares of SoundHound AI during the fourth quarter valued at about $27,000. 19.28% of the stock is owned by institutional investors.

SoundHound AI Company Profile

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.