Introduction
Soun stock, the publicly traded shares of SoundHound AI, Inc. (NASDAQ: SOUN), has been one of the most talked-about stocks in the AI industry. With its cutting-edge voice recognition technology and high-profile partnerships, the company saw a massive surge in stock price in early 2024. However, recent events, including Nvidia Corporation (NASDAQ: NVDA) selling off its entire stake in SoundHound, have sent shockwaves through the market. Investors are now left wondering—is Soun stock still a good buy, or is it heading for trouble?
In this in-depth analysis, we will break down:
- What SoundHound AI does and why its technology matters
- Why Soun stock skyrocketed in early 2024
- Nvidia’s surprising sell-off and its impact
- Financials, partnerships, and future outlook
- What investors should consider before buying or selling Soun stock
Let’s dive into the full picture of SoundHound AI’s rollercoaster ride in the stock market.
What Is SoundHound AI, and Why Is It Important?
SoundHound AI is a company that specializes in voice recognition technology and conversational AI. It powers AI voice solutions for major industries, including:
- Automotive – Car manufacturers like Hyundai and Kia use SoundHound’s AI for voice control systems.
- Hospitality – Restaurants such as Chipotle and Applebee’s use SoundHound’s AI-powered ordering systems.
- Smart Devices – SoundHound provides AI solutions for consumer electronics, similar to Amazon Alexa and Google Assistant.
What sets SoundHound apart is its proprietary voice AI technology. Unlike other voice assistants that rely on cloud-based processing, SoundHound’s technology offers faster, real-time voice recognition with lower latency.
Why Was Soun Stock Skyrocketing in 2024?
In the first half of 2024, Soun stock surged by over 700%. This explosive growth was driven by:
AI Boom: The rise of AI stocks, fueled by major companies like Nvidia and OpenAI, created strong demand for AI-related investments.
Strong Partnerships: SoundHound secured major deals in the automotive and hospitality industries, proving its AI was gaining traction.
Investor Hype: Many saw SoundHound as an underappreciated AI stock, leading to massive buying momentum.
However, the situation changed dramatically in early 2025 when Nvidia completely exited its position in SoundHound.
Nvidia’s Sell-Off: What Happened?
In February 2025, Nvidia disclosed in its 13-F filing that it had sold its entire stake (1.7 million shares) in SoundHound. This was a major blow because Nvidia is seen as a key player in the AI industry.
How Did the Market React?
Soun stock dropped nearly 30% in one day, falling to $10.97 per share.
Investor confidence shook, as Nvidia’s exit was interpreted as a lack of confidence in SoundHound’s future.
Wall Street analysts debated whether the stock was overhyped or still a strong AI play.
So, does Nvidia’s move mean SoundHound AI is doomed? Not necessarily.
Is SoundHound AI Still in a Strong Position?
Despite Nvidia’s sell-off, SoundHound AI is far from a failing company. Here’s why:
1. Solid Revenue Growth
- Projected 2024 revenue: $84 million
- Expansion into enterprise AI, a $1 trillion market opportunity
2. Strong Partnerships
- Automotive AI deals with Hyundai and Kia
- Restaurant AI integrations with Chipotle, Applebee’s, and more
3. Expanding AI Market
- Conversational AI adoption is growing in smart devices, healthcare, and finance.
- Companies are shifting towards voice-enabled technology, which benefits SoundHound.
So, while Nvidia exiting might raise concerns, SoundHound is still a major player in AI voice recognition.
Risks Investors Should Consider
While there are strong reasons to be bullish on Soun stock, there are also risks that investors should not ignore:
High Volatility: The stock has seen massive ups and downs, making it a risky short-term play.
Competitive Market: SoundHound competes with Amazon (Alexa), Google (Assistant), and Microsoft (Cortana).
Profitability Concerns: Despite revenue growth, SoundHound has yet to achieve consistent profitability.
Investor Sentiment: Nvidia’s exit could impact investor confidence, leading to more short-term selling pressure.
Should You Buy, Hold, or Sell Soun Stock?
For investors considering buying Soun stock, here’s a breakdown:
Buy Soun Stock If: You believe in AI voice technology as a long-term growth sector. You can tolerate high volatility and hold for the long run. You see SoundHound’s partnerships as a sign of future success.
Hold Soun Stock If: You already own it and believe in its long-term potential. You want to see how the company responds to Nvidia’s exit. You think SoundHound’s revenue growth will continue.
Sell Soun Stock If: You are uncomfortable with high volatility. You believe Nvidia’s exit is a warning sign. You think competition from big tech will limit SoundHound’s growth.
Conclusion
Soun stock has been one of the most explosive AI stocks in recent history, but with big gains come big risks. While Nvidia’s exit has raised red flags, SoundHound AI still has strong growth potential thanks to its unique AI technology and high-profile partnerships.
If you’re an investor with a high risk tolerance, Soun stock could be an exciting long-term play in the AI space. However, for those who prefer stability, it might be better to wait and see how the company performs in the next few quarters.
The future of SoundHound AI is far from written, but one thing’s for sure—Soun stock will continue to be one of the most watched AI stocks on the market.
Leave a Reply