SoundHound AI

SOUN

Market cap $5.06B

SoundHound is a major player in voice-related artificial intelligence. Its stock seems pricey, though.

SoundHound AI and Vertiv have been growing revenues at healthy rates, thanks to the rapid adoption of AI in their respective niches. Both stocks have been sliding in recent weeks.

I am listening to my own advice and buying SoundHound after the much-needed -47.5% meltdown from recent heights, given the improved margin of safety and recent bounce at $11s. SOUN now trades at a more attractive EV/Sales multiple, with the $1.2B booking backlog providing great insights into its multi-year high-growth cadence. The company's acquisition strategy accelerates innovation and cross-/upselling opportunities, albeit with near-term gross margin headwinds pending improved synergy.

The recent artificial intelligence (AI) sell-off has created attractive entry points in names ranging from chipmakers to data center operators. Infrastructure plays like CoreWeave and Nebius have pulled back sharply despite locking in tens of billions in hyperscaler contracts.

It's generating impressive top-line growth with its voice AI software services. However, investors should be careful about acquisition-driven companies.

SoundHound AI is an AI-powered disruptor in conversational intelligence, but its stock remains overvalued despite a recent sharp correction. SOUN reported strong 68% revenue growth in FQ3 2025, yet posted a significant bottom-line miss with a $13 million net loss and negative $0.27 EPS. While SOUN's technology and industry partnerships are and promising, the persistent lack of profitability raises concerns about long-term investor confidence.

SoundHound AI has shifted from meme stock chaos to legitimate business execution, with Q3 2025 revenue up 68% year over year. Management expects to reach adjusted EBITDA breakeven in Q4 2025, marking a major milestone for the historically unprofitable company.

BigBear.ai and SoundHound AI cater to different segments of the artificial intelligence market. BigBear.ai generates the bulk of its revenue from the U.S. government, and federal spending cuts have impacted sales.

Nvidia's GPUs are driving the growth of artificial intelligence (AI). Alphabet is utilizing AI to improve advertising and solidify its dominance in search.

SoundHound AI, Inc. SOUN has entered into a partnership with Parkopedia to offer a new in-vehicle voice AI parking agent within its in-car voice commerce platform. This expanded collaboration with the global leader of connected car services will allow SoundHound to offer an integrated service to drivers, making their jobs easier in finding parking and making related payments.