SoundHound AI (NASDAQ:SOUN) Shares Up 12.6% - Here's Why

Key Points

• Shares rose 12.6% on heavy volume, trading as high as $7.94 as unusual call buying (~92,140 contracts) and short‑squeeze/momentum chatter coincided with the company’s push into automation and agentic AI.
• Despite the rally, SoundHound remains unprofitable, trades below its 200‑day moving average ($11.25), and insiders have sold roughly 307,973 shares over the past 90 days, raising downside risk if results disappoint.
• Analysts have a consensus "Moderate Buy" with an average price target of $14.93; the company reported revenue of $55.06M (+59.4% YoY) last quarter while EPS matched estimates at -$0.02.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded up 12.6% during mid-day trading on Wednesday . The stock traded as high as $7.94 and last traded at $7.85. 41,285,795 shares were traded during mid-day trading, an increase of 59% from the average session volume of 25,885,693 shares. The stock had previously closed at $6.97.

SoundHound AI News Summary

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

• Positive Sentiment: Company platform expanding into automation after 2025 revenue nearly doubled, positioning SoundHound to capture enterprise demand for agentic AI that runs end-to-end workflows — a clear fundamental growth narrative investors can rally around. SoundHound AI Platform Expands: Is Automation the Catalyst?
• Positive Sentiment: Unusual options activity: investors bought roughly 92,140 call contracts (≈50% above average daily call volume), signaling aggressive bullish bets ahead of earnings and amplifying short-term upside pressure. No external article
• Positive Sentiment: Short-squeeze chatter and trader interest ahead of earnings has driven intraday rallies as momentum traders pile in, contributing to the stock’s upward move. SoundHound AI Rallies 9% as Short Squeeze Chatter Heats Up Ahead of Earnings
• Neutral Sentiment: Recent sessions show higher trading volume and small day-to-day gains (recent close reported above prior day), indicating active positioning but not yet a clear trend reversal; near-term moves look momentum-driven. SoundHound AI, Inc. (SOUN) Rises Higher Than Market: Key Facts
• Negative Sentiment: Fundamental/technical risks remain: SoundHound is still unprofitable (negative EPS/ margins and analyst EPS forecasts for the year), and the share price remains below longer-term moving averages and its 52-week high — earnings or any disappointment could trigger sharp reversals. No external article

Analyst Ratings Changes

SOUN has been the subject of several recent analyst reports. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. HC Wainwright dropped their target price on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Piper Sandler reaffirmed a "neutral" rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Finally, DA Davidson set a $14.00 price objective on shares of SoundHound AI in a report on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Up 12.6%

The stock has a market capitalization of $3.32 billion, a P/E ratio of -156.97 and a beta of 2.71. The business has a fifty day simple moving average of $7.45 and a 200 day simple moving average of $11.25.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same quarter last year, the company earned ($0.05) earnings per share. The company's revenue for the quarter was up 59.4% on a year-over-year basis. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 124,510 shares of the firm's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the transaction, the chief executive officer directly owned 2,073,777 shares of the company's stock, valued at $14,080,945.83. This trade represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider James Ming Hom sold 31,019 shares of the business'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 transaction, the insider owned 772,364 shares in the company, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 307,973 shares of company stock valued at $2,091,110 over the last 90 days. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Danske Bank A S purchased a new position in shares of SoundHound AI in the 3rd quarter worth about $26,000. Investors Research Corp increased its holdings in SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after buying an additional 700 shares during the last quarter. Financial Consulate Inc. bought a new stake in SoundHound AI in the third quarter worth about $32,000. Sound Income Strategies LLC raised its position in SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after acquiring an additional 575 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after acquiring an additional 1,060 shares during the last quarter. Institutional investors 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.

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