What Happened?
Shares of voice AI recognition company SoundHound (NASDAQ: SOUN) jumped 12.6% in the morning session after Piper Sandler analyst James Fish initiated coverage on the stock with a Buy rating and a $12 price target.
He viewed SoundHound as a compelling AI play, driven by its voice AI platform and exposure to expanding markets like IoT and automotive tech. Fish highlighted strong growth potential due to low current market penetration, rising average selling prices, and new customer wins. However, he noted short-term risks from declining auto production and reduced customer exposure that could temporarily impact performance.
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What The Market Is Telling Us
SoundHound AI’s shares are extremely volatile and have had 92 moves greater than 5% over the last year. But moves this big are rare even for SoundHound AI and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 29.4% on the news that a 13F filing from Nvidia revealed that the chipmaker sold its stake in the company. The market reaction suggested investors saw Nvidia's involvement as a vote of confidence, and its exit has introduced uncertainty.
SoundHound AI is down 46.3% since the beginning of the year, and at $10.82 per share, it is trading 55.3% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $1,443.
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