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SOUN Up Heading Into Afterhours
The market is now closed and Soundhound closed the day up 22.61% and still gaining slight momentum in afterhours trading.
During SoundHound AI’s Q1 2025 earnings call, CEO Keyvan Mohajer highlighted the company’s Polaris foundation model, noting it delivers up to four times faster response times and double the sentence accuracy in noisy environments compared to competitors. Additionally, the integration of recent acquisitions like SYNQ3, Amelia, and Allset has expanded SoundHound’s market reach, with over 13,000 restaurant locations now utilizing its AI solutions.
SoundHound AI May Have Another 134% Upside
At the moment, analysts have an average price target of $12.75 (15% potential upside), with the high-end estimates coming in at $26 (134% potential upside).
Fueling upside, the company recently said it now expects 2025 revenue to be between $157 million to $177 million, compared with previous guidance of $155 million to $175 million.
Plus, according to CEO Keyvan Mohajer, investors overreacted to news that Nvidia sold shares of SounHound AI.
As quoted by Barron’s, “In our opinion, there was a bit of an overreaction. Our impression is that they’re not investing to hold public company shares, they’re investing to create an ecosystem and to create an alliance, and those benefits have already been seen and validated in terms of Nvidia’s investment in SoundHound.”
High short interest
SoundHound AI Inc. delivered a punishing blow to short sellers today, with shares surging over 24% after strong Q1 earnings and bullish growth guidance reignited investor enthusiasm. With short interest at over 30% of the float, today’s rally likely triggered a major short squeeze, forcing bears to cover as momentum and volume soared. Backed by triple-digit revenue growth and a robust pipeline in voice AI tech, SoundHound proved it’s not just hype — it’s executing, and fast.
Up about 24%, shares of SoundHound AI (NASDAQ: SOUN) are just starting to pivot from strong support.
Over the last two years, shares of SoundHound AI exploded from a low of about $1.02 to a high of $21.30 – a 1,900%+ return.
Now back to $10.60, SOUN – a $4.25 billion voice AI platform – still offers plenty of upside potential. Granted, recent earnings weren’t so hot. Its EPS loss of six cents was in line. Revenue, while up 151.3% year over year, missed by $1.25 million.
However, SoundHound also said it now expects 2025 revenue to be between $157 million to $177 million, compared with previous guidance of $155 million to $175 million.
Three, the company believes the recent Nvidia-fueled pullback was an overreaction.
Sure, Nvidia did sell its shares in SOUN.
However, according to Chief Executive Keyvan Mohajer, as quoted by Barron’s, “In our opinion, there was a bit of an overreaction. Our impression is that they’re not investing to hold public company shares, they’re investing to create an ecosystem and to create an alliance, and those benefits have already been seen and validated in terms of Nvidia’s investment in SoundHound.”