SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.5% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) rose 1.5% on Thursday. The company traded as high as $6.12 and last traded at $6.10. 12,306,136 shares traded hands during mid-day trading, a decline of 56% from the average daily volume of 27,948,402 shares. The stock had previously closed at $6.01.

SoundHound AI News Roundup

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: OASYS Edge expands SoundHound’s addressable market. The company introduced an architecture that embeds LLM-powered, agentic voice AI directly into vehicles and smart devices. Manufacturers can deploy the same AI agent in cloud, edge or hybrid environments, with availability expected in late 2026. This could support broader adoption and lower deployment costs, although commercial revenue is not immediate. SoundHound AI Introduces OASYS Edge
• Positive Sentiment: Investors continue to focus on SoundHound as an AI growth stock. Recent coverage highlights its revenue growth, narrowing losses and potential to benefit from demand for embedded voice and agentic AI, providing a constructive long-term narrative. Cerebras vs. SoundHound comparison
• Neutral Sentiment: Heavy investor attention is increasing volatility. SoundHound is among the most-watched stocks on Zacks and is being compared with other AI companies as a potential 2026 investment. The attention may support trading interest but does not by itself change the company’s fundamentals. Is Trending Stock SoundHound AI a Buy Now?
• Negative Sentiment: Analyst actions are weighing on sentiment. Piper Sandler lowered its SoundHound price target to $6.00, and separate coverage linked a decline in the stock to an analyst downgrade. The reduced target signals limited near-term upside and reinforces concerns about valuation and continued losses. Piper Sandler Lowers SoundHound Price Target
• Negative Sentiment: Short-selling data suggests potential pressure but is inconsistent. One report places SOUN among stocks with short interest above one-third of the float, while another lists zero shares short, indicating a possible data discrepancy. If the higher figure is accurate, it could amplify volatility and downside risk, though it also creates squeeze potential. Squeeze Watch: Stocks With High Short Interest

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Friday, September 11th. Piper Sandler reduced their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday. DA Davidson decreased their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Finally, Wall Street Zen downgraded shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $12.75.

SoundHound AI Stock Down 1.0%

The stock has a fifty day moving average price of $6.64 and a 200-day moving average price of $7.14. The firm has a market cap of $2.68 billion, a price-to-earnings ratio of -15.89 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company’s revenue for the quarter was up 45.0% on a year-over-year basis. During the same period last year, the company earned ($0.19) earnings per share. As a group, research analysts expect that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insider Activity

In other news, CEO Keyvan Mohajer sold 137,290 shares of the business’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $869,045.70. Following the transaction, the chief executive officer directly owned 3,684,947 shares in the company, valued at $23,325,714.51. The trade was a 3.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $450,145.29. Following the transaction, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. This represents a 2.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock worth $1,828,598 over the last quarter. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Geode Capital Management LLC lifted its holdings in shares of SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after buying an additional 273,097 shares during the period. Swiss National Bank grew its holdings in SoundHound AI by 3.7% during the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock worth $5,270,000 after acquiring an additional 27,300 shares during the period. California State Teachers Retirement System raised its position in SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after acquiring an additional 87,998 shares in the last quarter. AXQ Capital LP raised its position in SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after acquiring an additional 203,345 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in SoundHound AI in the first quarter valued at $1,606,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.