Could SoundHound AI Split Its Stock Soon?

Over the last two years, shares of SoundHound AI (NASDAQ: SOUN) exploded from a low of about $1.02 to a high of $21.30 – a 1,988% return.

Now back to $11.36, SOUN – a $4.56 billion voice AI platform – still offers plenty of upside potential. Concerning a potential near-term forward stock split, we don’t see it happening.

At least, not yet.

First, the current stock price isn’t high enough to warrant a stock split. Second, at less than $12 a share, it’s easily accessible to most investors looking for an affordable AI stock.

Whatever the case may be, SOUN is still a solid long-term bet.

For one, this is the company that provides voice control and audio analytics software to automakers, drive-through restaurants, and other businesses with phone-based menu systems.

Two, earnings have been strong. In its fourth quarter, the company posted better-than-expected numbers and raised its revenue outlook for the year.  It reported an adjusted EPS loss of five cents on revenue of $34.5 million. Analysts were looking for a loss of nine cents on revenue of $33.7 million

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.

Granted, 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.”

SoundHound AI is Seeing Significant Customer Momentum

Despite some recent hiccups, SOUN is seeing a good deal of customer momentum.

It’s now working with over 30% of the top 20 quick-service restaurants and is expanding with Burger King UK, Church’s Texas Chicken, Peet’s Coffee, and Whataburger.

It’s working with healthcare giants, including Duke Health, Wellstar Health System, and Englewood Health. With autos, it’s working with electric vehicle manufacturers, with customers including Lucid Motors. It’s also working with multi-location retail brands in clothing, fitness, vehicle maintenance, home services, waste management, and more. It’s even working with one of the largest electric utilities in the U.S.

Additionally, it recently signed a deal to work with the City of Coral Springs and is continuing to roll out its conversational AI capabilities with federal government agencies, including a branch of the United States military in partnership with General Dynamics Information Technology.

It also just expanded its telecom footprint in South America with Telefónica.

It’s working with financial giants, such as BNP Paribas as well as regional banks and credit unions such as American Heritage Credit Union, Nordic Bank, Sterling Bank, and Truly Credit Union.  

The list goes on…

Again, while the SOUN stock isn’t likely to see a forward split any time soon, it’s still a solid long-term bet with a good deal of upside potential.