Santa Clara, CA – SoundHound AI, Inc. (NASDAQ: SOUN), a leader in voice artificial intelligence and conversational intelligence, saw its stock price roar back to life today. Shares of the high-profile AI company surged an impressive 8.85% to close the session at $10.70.
This explosive single-day gain of $0.87 represents a significant turnaround and a powerful signal of renewed investor interest. The rally is part of a broader positive trend that has been building recently. SOUN stock has climbed 11.07% over the last five days, suggesting a strong accumulation of shares by bullish investors.
Today’s performance is particularly noteworthy given the stock’s turbulent journey in 2024. The recent gains come after a brutal sell-off that saw the stock decline -52.42% over the past six months and -47.57% year-to-date. This context makes the current rebound even more dramatic, as traders bet on a potential bottoming pattern.
Despite the recent volatility, the one-year picture remains incredibly strong, with SoundHound AI delivering a massive 165.06% return to shareholders. This highlights the stock’s “boom-and-bust” nature, which is closely tied to the hype cycle surrounding the artificial intelligence sector. As a company with a strategic investment from AI-chip giant NVIDIA, SoundHound is often seen as a key barometer for sentiment in the AI space.
Investors are now watching closely to see if today’s powerful move can be sustained, potentially marking the start of a new major uptrend for the voice AI innovator.
Frequently Asked Questions (FAQ) about SoundHound AI (SOUN)
1. What is the stock ticker for SoundHound AI?
SoundHound AI trades on the Nasdaq Stock Market under the ticker symbol SOUN.
2. Why did SOUN stock jump so much today?
SOUN stock surged nearly 9%, driven by renewed buying interest and positive momentum in the AI sector. This type of volatile move is common for high-growth, speculative stocks like SoundHound as market sentiment shifts.
3. What does SoundHound AI do?
SoundHound AI is a company that specializes in voice artificial intelligence and conversational intelligence technologies. Its platform allows humans to interact with products and services using their natural voice. Its technology is used in cars, smart devices, and by businesses like restaurants for voice ordering.
4. Why is SoundHound AI stock so volatile?
The stock is extremely volatile because it’s a high-growth, not-yet-profitable company in the red-hot AI sector. Its price is heavily influenced by market sentiment, news about AI developments, and its association with larger companies like NVIDIA, making it a popular but risky stock for traders.
5. How can the stock be down nearly 50% this year but up over 160% in the last year?
This demonstrates the stock’s extreme volatility. It means the stock had a massive run-up in price sometime in the last 12 months, followed by an equally dramatic crash. The recent surge is the beginning of a potential recovery from that crash.
6. Is NVIDIA an investor in SoundHound AI?
Yes, chipmaker NVIDIA is a known investor in SoundHound AI. This connection often fuels investor excitement and contributes to the stock’s volatility, as it’s seen as a stamp of approval from an AI industry leader.
7. Does SoundHound AI pay a dividend?
No, SoundHound AI does not pay a dividend. As a growth-stage company, it reinvests all of its capital back into research, development, and expanding its business.
8. Is SoundHound AI profitable?
No, the company is not yet profitable. It is still in the investment phase, focusing on growing its customer base and technology platform. This lack of profitability is a key reason for its high-risk, high-reward profile.
9. Who are SoundHound AI’s competitors?
It competes with a range of companies in the conversational AI space, including large tech giants like Google (Google Assistant), Amazon (Alexa), and Apple (Siri), as well as enterprise-focused players like Nuance Communications (owned by Microsoft).
10. What was the stock’s previous closing price?
According to the chart data, the previous day’s close for SOUN was $9.83.
11. What does the 6-month return of -52.42% tell investors?
This indicates that the stock lost more than half of its value over the last six months. It highlights the significant risk associated with the stock and the severity of the sell-off that preceded this recent rebound.
12. How does SoundHound AI make money?
The company generates revenue primarily through licensing its voice AI platform to businesses. Its revenue models often include royalties, usage-based fees, and subscriptions.
