SoundHound AI shares closed 1.3% higher at $6.79 on Wednesday, paring early gains of 7% as AI stocks rebounded following eased geopolitical tensions in the Middle East. Trading volume reached 21.3 million shares, 18% below the average, reflecting a cautiously optimistic market sentiment.

The voice AI specialist reported quarterly revenue of $55.06 million—a 59.4% year-over-year surge that exceeded analyst estimates. Full-year revenue reached a record $169 million, demonstrating strong adoption of its conversational AI solutions across the automotive and restaurant sectors.

Despite bullish analyst price targets suggesting a potential 110% upside, the stock faces headwinds from recent insider selling and executive departures. Technical analysis indicates key resistance levels at the 50-day moving average ($7.66) and the 200-day moving average ($11.62).