SoundHound AI (NASDAQ:SOUN) Trading 2.1% Higher – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares shot up 2.1% during trading on Tuesday . The company traded as high as $11.28 and last traded at $11.23. 27,834,854 shares were traded during trading, an increase of 3% from the average session volume of 26,915,627 shares. The stock had previously closed at $11.00.

Key SoundHound AI News

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

• Positive Sentiment: Major product launch — SoundHound unveiled Amelia 7 (agentic voice AI) and Vision AI for vehicles at CES, shifting the company from passive voice assistants toward transactional “agentic” capability that can book restaurants, pay for parking, order food and enable in‑car commerce. This could open new fee/transaction revenue streams. CES 2026: SoundHound AI Unveils Agentic Voice Commerce
• Positive Sentiment: Automotive distribution boost — SoundHound announced a TomTom partnership to integrate multi‑agent voice navigation, strengthening its automotive channel and OEM credibility (a high‑value route to scale). TomTom partners with SoundHound AI
• Positive Sentiment: Commercial integrations announced — The company highlighted integrations with OpenTable and Parkopedia (reservations and parking payments) plus demonstrations with NVIDIA, which validate real‑world commerce and edge‑AI use cases that can drive partner monetization. OpenTable And Parkopedia Deals Might Change The Case For Investing In SoundHound AI (SOUN)
• Positive Sentiment: Solid recent growth and cash runway — Q3 revenue rose ~68% YoY and management highlights cash runway (supporting execution through product commercialization), reducing near‑term dilution risk and making the business case for longer‑term monetization credible.
• Neutral Sentiment: Investor attention and momentum — SOUN has become a most‑watched name (Zacks / MarketBeat), which can amplify short‑term moves but also increases volatility; heightened options and trading volume are fueling momentum rather than changing fundamentals. Is Most-Watched Stock SoundHound AI, Inc. (SOUN) Worth Betting on Now?
• Neutral Sentiment: Analyst coverage is mixed but active — several firms maintain buy/outperform ratings and a wide range of price targets, reflecting divergence on execution risk vs. opportunity. This keeps the stock tumor‑like to newsflow. SoundHound AI Unveils Amelia 7 Agentic AI for Voice Commerce at CES 2026
• Negative Sentiment: Analyst price‑target cut — Piper Sandler lowered its target to $11 and rated SOUN “neutral”, which could cap near‑term upside and pressure sentiment among momentum traders. Benzinga
• Negative Sentiment: Insider selling, high short interest & valuation risk — recent disclosed insider sales and a high short interest increase downside risk and can cause outsized moves on negative news; several commentaries warn against “buying the dip” given premium multiples and execution dependence. QuiverQuant (insider & institutional data) Don’t buy the dip, says top investor about SoundHound stock

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. Oppenheimer assumed coverage on SoundHound AI in a research note on Thursday, September 11th. They set a “market perform” rating for the company. DA Davidson restated a “buy” rating and set a $17.00 target price on shares of SoundHound AI in a report on Tuesday, November 18th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Tuesday, October 14th. Piper Sandler lowered their price target on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a research note on Monday. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price target for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.50.

SoundHound AI Price Performance

The company has a market cap of $4.72 billion, a price-to-earnings ratio of -13.37 and a beta of 2.65. The stock has a 50-day moving average price of $12.43 and a 200 day moving average price of $13.50.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The business had revenue of $42.05 million during the quarter, compared to analysts’ expectations of $40.48 million. During the same period in the prior year, the business earned ($0.04) EPS. SoundHound AI’s revenue for the quarter was up 67.6% compared to the same quarter last year. Sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the transaction, the chief operating officer directly owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. This trade represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Majid Emami sold 42,600 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the senior vice president owned 565,586 shares in the company, valued at $6,379,810.08. The trade was a 7.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 723,310 shares of company stock worth $10,747,881. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently modified their holdings of the business. Danske Bank A S bought a new stake in SoundHound AI during the third quarter worth about $26,000. Investors Research Corp increased its position in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after purchasing an additional 700 shares during the last quarter. Financial Consulate Inc. acquired a new position in shares of SoundHound AI during the 3rd quarter worth approximately $32,000. Sound Income Strategies LLC raised its stake in shares of SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after purchasing an additional 575 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

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.