SoundHound AI (NASDAQ:SOUN) Shares Climb 7.9% – Still a Buy?

Posted by Brian Himes on Oct 15th, 2026

Shares of SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) traded up 7.9% on Thursday. The company traded as high as $4.90 and last traded at $4.89. Approximately 17,833,998 shares were traded during mid-day trading, a decline of 34% from the average session volume of 27,080,494 shares. The stock had previously closed at $4.53.

SoundHound AI News Summary

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

Positive Sentiment: Kia launch provides a commercial validation point: SoundHound’s OASYS platform is powering a real-time generative voice AI assistant in the Kia Sorento in India. The deployment, described as a global and category first for in-car generative AI, could strengthen SoundHound’s automotive pipeline and demonstrate enterprise adoption. What Could SoundHound AI First In Car AI Launch Mean For Investors?
Positive Sentiment: Technical rebound from depressed levels: SOUN recently touched a new 52-week low near $4.46 before recovering, suggesting some bargain hunting and short-term trading interest after a severe selloff. SoundHound AI Gains in a Single Session
Neutral Sentiment: Growth remains substantial but speculative: Recent quarterly revenue rose 45% year over year to $61.9 million and exceeded expectations, while adjusted earnings also beat estimates. However, the company remains unprofitable, and analysts expect a full-year loss.
Negative Sentiment: Profitability and cash-flow concerns continue to weigh on valuation: Persistent losses, negative cash flow and uncertainty about when SoundHound can reach profitability have undermined investor confidence. Analysts also flag acquisition-related execution risks despite expanding enterprise adoption. SoundHound Stock Trades at a Discount
Negative Sentiment: Downtrend remains pronounced: The stock has fallen sharply over the past month and year while the broader market and enterprise software group advanced, indicating company-specific concerns rather than simply sector weakness. The recent decline has also left SOUN well below its 50-day and 200-day moving averages. How Much Downside Is Left in SOUN Stock?

Analyst Ratings Changes

A number of research firms have issued reports on SOUN. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. Wall Street Zen downgraded shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. DA Davidson dropped their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Finally, Piper Sandler cut their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $12.75.

Read Our Latest Analysis on SOUN

SoundHound AI Stock Performance

The company has a market capitalization of $2.17 billion, a price-to-earnings ratio of -12.87 and a beta of 2.73. The company has a 50 day moving average price of $6.46 and a 200 day moving average price of $6.98.

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

Insider Transactions at SoundHound AI

In other news, CEO Keyvan Mohajer sold 137,290 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was 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 of the company’s stock, valued at $23,325,714.51. This represents a 3.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the senior vice president directly owned 834,253 shares in the company, valued at $5,280,821.49. The trade was a 4.44% 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. Over the last ninety days, insiders sold 288,758 shares of company stock worth $1,828,598. 8.84% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. SHP Wealth Management acquired a new position in SoundHound AI during the fourth quarter worth $27,000. Hollencrest Capital Management grew its holdings in shares of SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after buying an additional 2,400 shares during the last quarter. Vermillion Wealth Management Inc. grew its holdings in shares of SoundHound AI by 92.0% during the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after buying an additional 4,409 shares during the last quarter. Clarus Group Inc. bought a new stake in shares of SoundHound AI during the first quarter worth about $69,000. Finally, 180 Wealth Advisors LLC bought a new stake in shares of SoundHound AI during the first quarter worth about $69,000. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

(Get Free Report)

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.