$10,000 in SoundHound AI Stock 3 Years Ago? Here’s the Shocking ROI Today
SoundHound AI was supposed to be the next big thing—voice recognition meets artificial intelligence, a match made in tech heaven. But how did that $10,000 bet actually play out?
The Hype vs. The Reality
Three years ago, SoundHound AI promised to revolutionize how machines understand human speech. Investors piled in, hoping for NVIDIA-level returns. Spoiler: They didn’t get them.
Where’s the Money Now?
Turns out, even the most cutting-edge AI can’t outrun brutal market math. If you’d thrown $10,000 into SoundHound back in 2022, you’d be sitting on… well, let’s just say you’d have more fun burning cash for warmth.
Lesson learned? In tech investing, sometimes the loudest bark has the weakest bite.
Image source: Getty Images.
SoundHound made a lot of noise out of the gate
After completing a business merger with a special purpose acquisition company (SPAC), SoundHound began trading on the Nasdaq on April 28, 2022. Investor appetite for the stock quickly followed. In its first week of trading, shares of SoundHound roared 99.7% higher.
The gain didn't last, however, and shares of SoundHound plummeted in the ensuing months.
In 2024, the AI voice recognition stock shouted to investors that it still provided an attractive opportunity. Shares skyrocketed more than 835% during the year as the company provided investors with encouraging financial results as well as news of new customers, signaling that the company was fully engaged in growth mode.
This year, though, isn't setting up to produce the same results. With Nvidia exiting its position in SoundHound, investors have found the stock a lot less appealing.
Despite swings in both directions, SoundHound stock has provided positive returns for early investors. Those who invested $10,000 on April 28, 2022 have seen their investment grow in value to $13,480.
Is SoundHound a smart pick for AI investors?
Like many growth stocks, SoundHound stock has demonstrated volatility in the company's early days of being public, but that doesn't mean it's undesirable. With great growth prospects, SoundHound could be a great way to expand one's AI exposure for those with long investing horizons.
