SoundHound AI stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy SOUN?
SoundHound AI Inc. saw its stock price drop by 5.41% as it crossed below the 5-day SMA, reflecting broader market trends.
The decline comes as the Nasdaq-100 and S&P 500 indices fell by 0.80% and 0.55%, respectively, indicating a sector rotation affecting SoundHound AI despite its recent product launch and positive revenue outlook. The company's new Edge Agentic+ platform, unveiled at Nvidia GTC 2026, had previously generated investor interest, but the overall market weakness has overshadowed these developments.
Investors are now closely monitoring SoundHound's ability to leverage its technological innovations and revenue growth in a challenging market environment, as the company aims to secure partnerships in the automotive sector.
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Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 7.700
Low
11.00
Averages
16.60
High
26.00
Current: 7.700
Low
11.00
Averages
16.60
High
26.00
About SOUN
SoundHound AI, Inc. is engaged in conversational intelligence, offering voice and conversational artificial intelligence (AI) solutions that let businesses offer experiences to their customers. Through its proprietary technology, its voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via AI-driven products, such as Smart Answering, Smart Ordering, Dynamic Drive Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a voice assistant with integrated Generative AI, it powers various products and services, and processes billions of interactions each year for businesses. Its developer platform, Houndify, is an open-access platform that allows developers to leverage its Voice AI technology and a library of over 100 content domains, including commonly used domains for points of interest, weather, flight status, sports and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SoundHound AI Shares Surge 12% Amid Optimism
- Partnership Fuels Stock Rally: SoundHound AI's collaboration with Associated Carrier Group announced on April 9 aims to roll out its AI platform across numerous smaller telecom operators, resulting in a more than 12% stock increase in a single day, reflecting renewed market optimism about the company's future prospects.
- Enterprise Market Expansion: The company is extending its technology beyond smartphones into enterprise workflows, with recent deployments at Mexican insurer Quálitas and Peet's coffee chain, indicating broader adoption across industries and enhancing customer service efficiency.
- Aggressive Revenue Outlook: SoundHound projects 2026 revenues between $225 million and $260 million, significantly exceeding last year's record of $169 million, as management anticipates that enterprise adoption of its “agentic AI” systems will drive this next growth phase.
- Retail Investor Sentiment Shift: According to Stocktwits, retail sentiment around SOUN shifted from 'bearish' to 'extremely bullish', with message volume surging 221% in 24 hours, indicating strong market interest in the stock.
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- SoundHound AI Market Expansion: SoundHound AI's revenue increased by 58% year-over-year in Q4, with its AI recognition technology thriving in the restaurant sector, suggesting significant potential in healthcare, insurance, and finance, which could lead to substantial cost savings and enhanced customer service.
- Nebius Rapid Growth: As an emerging AI cloud computing company, Nebius experienced a 547% year-over-year revenue growth in Q4, with its core AI business achieving an impressive 802% increase, and it expects annual revenue to reach $7 billion to $9 billion by 2026, reflecting strong market demand and growth potential.
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- IonQ's Quantum Computing Surge: IonQ's revenue in the quantum computing sector soared 429% year-over-year in Q4, indicating strong market demand for its technology; if it becomes a leader in the field, its stock could achieve 10x growth over the next five years.
- SoundHound AI's Market Potential: SoundHound AI's automation solutions in the restaurant industry drove a 58% year-over-year revenue increase in Q4, and if it successfully expands into healthcare and insurance sectors, it could significantly enhance customer service efficiency and reduce costs, propelling rapid company growth.
- Nebius's Cloud Computing Boom: Nebius experienced a 547% revenue growth in Q4, with its core AI business skyrocketing 802% year-over-year, and it expects annual revenue to reach $7 billion to $9 billion by 2026, reflecting strong market demand and growth potential.
- Analysts' Optimistic Projections: Wall Street analysts are optimistic about Nebius's future, forecasting revenue growth of 522% in 2026 and 195% in 2027; if it maintains this growth trajectory, it could easily deliver 10x returns over the next five years.
See More
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- Nvidia's Market Dominance: Nvidia (NVDA) achieved a remarkable 73% revenue growth in Q4 of fiscal 2026, with a projected 77% increase for Q1 of fiscal 2027, highlighting its strong performance amid surging demand for AI processing power, and with a forward P/E ratio of just 22.4, it stands out as an ideal investment choice.
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- Nebius's Rapid Growth: Nebius Group (NBIS), closely partnered with Nvidia, anticipates reaching an annual revenue of $7 billion to $9 billion by the end of 2026, demonstrating its strong growth potential in AI cloud computing resources, which could significantly benefit shareholders if realized.
- CoreWeave's Significant Growth: CoreWeave (CRWV) is projected to see a 142% revenue increase this year and 86% next year, with sales expected to reach $23 billion by 2027, up from $5.1 billion over the past 12 months, further solidifying its status as a hypergrowth company.
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SoundHound AI Shares Surge 12% Amid Optimism
- Partnership Fuels Stock Rally: SoundHound AI's collaboration with Associated Carrier Group announced on April 9 aims to roll out its AI platform across numerous smaller telecom operators, resulting in a more than 12% stock increase in a single day, reflecting renewed market optimism about the company's future prospects.
- Enterprise Market Expansion: The company is extending its technology beyond smartphones into enterprise workflows, with recent deployments at Mexican insurer Quálitas and Peet's coffee chain, indicating broader adoption across industries and enhancing customer service efficiency.
- Aggressive Revenue Outlook: SoundHound projects 2026 revenues between $225 million and $260 million, significantly exceeding last year's record of $169 million, as management anticipates that enterprise adoption of its “agentic AI” systems will drive this next growth phase.
- Retail Investor Sentiment Shift: According to Stocktwits, retail sentiment around SOUN shifted from 'bearish' to 'extremely bullish', with message volume surging 221% in 24 hours, indicating strong market interest in the stock.
See More
Five AI Stocks Worth Investing In
- Nvidia's Growth Potential: Nvidia (NVDA) currently trades around $201, with expectations of significant increases driven by AI stock momentum, as analysts project 79% revenue growth in Q1 and 85% in Q2, indicating strong market demand and future growth potential.
- Nebius's Rapid Growth: Nebius (NBIS) has nearly doubled in stock price, with projected revenue growth of 522% this year and 195% next year, making it the fastest-growing stock on this list, showcasing its strong performance in the AI hardware market and future investment value.
- CoreWeave's Steady Performance: CoreWeave (CRWV) is expected to see a 142% revenue growth in 2026 and 87% in 2027; while its growth rate is lower than Nebius, its larger market size is projected to reach $23.3 billion by 2027, demonstrating its competitiveness in GPU cloud computing infrastructure.
- Applied Digital's Strategic Positioning: Applied Digital (APLD) focuses on building data centers, with projected growth of 94% in 2026 and 49% in 2027, and its collaboration with clients like CoreWeave enhances its market position, making it an attractive investment at around $30 per share.
See More
AI Stocks Poised for Incredible Growth Ahead
- Nvidia Growth Outlook: Currently trading around $201, Nvidia is projected to see a 79% revenue growth in Q1 and 85% in Q2, reinforcing its dominant position in the AI market and making it a top investment choice.
- Nebius Rapid Expansion: Nebius's stock has nearly doubled, with analysts forecasting a staggering 522% revenue growth this year and 195% next year, highlighting its strong demand in the AI hardware sector.
- CoreWeave Market Position: CoreWeave focuses on GPU-based cloud computing infrastructure, with expected revenue growth of 142% in 2026 and 87% in 2027, reaching $23.3 billion by 2027, indicating its solid standing in the market.
- Strategic Value of Applied Digital: Applied Digital is building data centers with projected growth of 94% in 2026 and 49% in 2027, serving clients like CoreWeave, underscoring its critical role in AI infrastructure development.
See More
Quantum Computing and AI Companies Experience Rapid Growth
- IonQ Revenue Surge: IonQ's revenue soared 429% year-over-year in Q4, indicating the growing popularity of quantum computing research, with most revenue stemming from recognized contracts, thus solidifying its future market position.
- SoundHound AI Market Expansion: SoundHound AI's revenue increased by 58% year-over-year in Q4, with its AI recognition technology thriving in the restaurant sector, suggesting significant potential in healthcare, insurance, and finance, which could lead to substantial cost savings and enhanced customer service.
- Nebius Rapid Growth: As an emerging AI cloud computing company, Nebius experienced a 547% year-over-year revenue growth in Q4, with its core AI business achieving an impressive 802% increase, and it expects annual revenue to reach $7 billion to $9 billion by 2026, reflecting strong market demand and growth potential.
- Investment Return Potential: All three companies are positioned to potentially deliver 10x returns over the next five years, particularly as IonQ and Nebius rapidly advance in their respective fields, attracting investor interest that could lead to significant stock price increases when risk appetite rebounds.
See More
Three Stocks Poised for 10x Returns
- IonQ's Quantum Computing Surge: IonQ's revenue in the quantum computing sector soared 429% year-over-year in Q4, indicating strong market demand for its technology; if it becomes a leader in the field, its stock could achieve 10x growth over the next five years.
- SoundHound AI's Market Potential: SoundHound AI's automation solutions in the restaurant industry drove a 58% year-over-year revenue increase in Q4, and if it successfully expands into healthcare and insurance sectors, it could significantly enhance customer service efficiency and reduce costs, propelling rapid company growth.
- Nebius's Cloud Computing Boom: Nebius experienced a 547% revenue growth in Q4, with its core AI business skyrocketing 802% year-over-year, and it expects annual revenue to reach $7 billion to $9 billion by 2026, reflecting strong market demand and growth potential.
- Analysts' Optimistic Projections: Wall Street analysts are optimistic about Nebius's future, forecasting revenue growth of 522% in 2026 and 195% in 2027; if it maintains this growth trajectory, it could easily deliver 10x returns over the next five years.
See More
Hypergrowth Stocks in the AI Sector
- Nvidia's Market Dominance: Nvidia (NVDA) achieved a remarkable 73% revenue growth in Q4 of fiscal 2026, with a projected 77% increase for Q1 of fiscal 2027, highlighting its strong performance amid surging demand for AI processing power, and with a forward P/E ratio of just 22.4, it stands out as an ideal investment choice.
- Broadcom's Custom AI Chips: Although Broadcom (AVGO) reported an overall growth of 29% in its latest fiscal quarter, its custom AI chips are expected to generate $100 billion in revenue by next year, with analysts forecasting an acceleration to 64% growth in fiscal 2026, showcasing its potential in the AI market.
- Nebius's Rapid Growth: Nebius Group (NBIS), closely partnered with Nvidia, anticipates reaching an annual revenue of $7 billion to $9 billion by the end of 2026, demonstrating its strong growth potential in AI cloud computing resources, which could significantly benefit shareholders if realized.
- CoreWeave's Significant Growth: CoreWeave (CRWV) is projected to see a 142% revenue increase this year and 86% next year, with sales expected to reach $23 billion by 2027, up from $5.1 billion over the past 12 months, further solidifying its status as a hypergrowth company.
See More
