SoundHound AI (NASDAQ:SOUN) Trading 1.3% Higher – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded up 1.3% on Wednesday . The company traded as high as $7.51 and last traded at $6.79. 21,325,309 shares traded hands during trading, a decline of 18% from the average session volume of 26,155,115 shares. The stock had previously closed at $6.70.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Strategic partnership with regional telecoms — SoundHound announced a tie-up with Associated Carrier Group (ACG) to deliver agentic AI to Tier 2/3 mobile operators, which management says can reduce call volumes, speed issue resolution and create recurring software revenue streams. This deal directly targets telecom customer-service spend and could accelerate commercial traction. SoundHound AI and Associated Carrier Group Partner to Bring Agentic AI to Telecom Customer Service and Employee Experience
• Positive Sentiment: Investor/media coverage and bullish analyst comparisons — multiple outlets highlight SOUN as a growth AI name with strong upside (TipRanks comparison vs. PLTR shows a “Strong Buy” signal and large projected upside), increasing visibility among retail and institutional investors. SoundHound (SOUN) vs. Palantir (PLTR): Which AI Stock Could Double in 2026?
• Positive Sentiment: Positive buy-the-dip narrative — The Motley Fool and other outlets are featuring SOUN as a high-upside growth pick, which can attract retail inflows when the stock dips. What Is One of the Best Growth Stocks to Buy With $500 Today?
• Neutral Sentiment: Trending and analyst attention — Zacks and other sites note heightened user/reader interest in SOUN, which can boost short-term volume but doesn’t guarantee sustained moves. Is Trending Stock SoundHound AI, Inc. (SOUN) a Buy Now?
• Neutral Sentiment: Broader tech/AI market drivers — some coverage attributes recent intraday strength to a wider tech rally and geopolitical news rather than company-specific fundamentals, so market direction may dominate near-term moves. SoundHound AI (SOUN) Stock Climbs Amid Broader Tech Rally on Geopolitical Developments
• Negative Sentiment: Recent sharp drawdown and volatility — another article flags a ~43% drop over three months and notable monthly declines; high short-term volatility raises execution and sentiment risk for investors. SoundHound Stock Plunges 43% in 3 Months: Buy the Dip or Wait Longer?
• Negative Sentiment: Valuation and fundamentals caution — despite 59% YoY revenue growth and a recent revenue beat, SoundHound remains unprofitable, carries a high forward P/S multiple and trades below key moving averages, which can limit upside until consistent profitability or much larger scale is proven. Article reference: company filings and recent earnings release.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on SOUN shares. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $13.00 to $15.00 in a research report on Friday, December 12th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research report on Thursday, January 8th. Finally, Piper Sandler restated a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 1.8%

The company has a market capitalization of $2.72 billion, a price-to-earnings ratio of -128.57 and a beta of 2.71. The business’s 50-day moving average is $7.55 and its 200-day moving average is $11.55.

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

Insiders Place Their Bets

In other SoundHound AI news, CFO Nitesh Sharan sold 44,027 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the transaction, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider James Ming Hom sold 31,019 shares of the company’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the transaction, the insider owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. Insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Hsbc Holdings PLC acquired a new position in shares of SoundHound AI in the fourth quarter worth about $110,000. Rockefeller Capital Management L.P. raised its position in shares of SoundHound AI by 3.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company’s stock worth $1,788,000 after acquiring an additional 6,096 shares during the period. SHP Wealth Management acquired a new position in shares of SoundHound AI in the fourth quarter worth about $27,000. Virtu Financial LLC raised its position in shares of SoundHound AI by 43.9% in the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company’s stock worth $2,191,000 after acquiring an additional 67,088 shares during the period. Finally, Alpine Woods Capital Investors LLC raised its position in shares of SoundHound AI by 143.0% in the fourth quarter. Alpine Woods Capital Investors LLC now owns 50,742 shares of the company’s stock worth $506,000 after acquiring an additional 29,857 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

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.