SoundHound (SOUN) Stock Jumps on Analyst Rating

Shares of SoundHound (NASDAQ:SOUN) increased by 12.6% in morning trading after Piper Sandler analyst James Fish started coverage on the stock with a Buy rating and a $12 price target. He considers SoundHound a compelling AI opportunity due to its voice AI platform and access to markets such as IoT and automotive tech. Fish cited growth potential because of low market penetration currently, increasing average selling prices, and new customers. He mentioned potential short-term risks from lower auto production and reduced customer exposure that could affect performance temporarily.

The shares closed at $11.12, which is up 16.1% from the previous day's close.

SoundHound AI’s shares are very volatile and have moved more than 5% on 92 occasions over the past year. Moves of this magnitude are unusual for SoundHound AI, suggesting the news had a notable impact.

The largest move in the past year occurred 3 months ago, with a 29.4% stock drop after an Nvidia 13F filing revealed the chipmaker sold its stake in the company. The market's reaction indicated that Nvidia's involvement was seen as a positive sign, and its departure has created uncertainty.

SoundHound AI is down 44.9% since the start of the year. At $11.11 per share, it is trading 54.1% below its 52-week high of $24.23 from December 2024.

An investment of $1,000 in SoundHound AI’s shares at the IPO in April 2022 would now be worth $1,481.