SoundHound Stock Skyrockets: Here’s Why Investors Are Piling In

SoundHound shares are on a tear this week—and the market's buzzing. What's fueling the rally? Let's break it down.

The AI Audio Play Heating Up

Voice recognition tech is having a moment, and SoundHound's riding the wave. No surprise—every hedge fund and their dog suddenly 'believes in the long-term vision' after ignoring it for years.

Partnerships or Hype?

Rumors of big-name collaborations are swirling. Whether it's auto giants or smart home players, someone’s betting heavy on SoundHound’s tech stack. Or maybe just front-running the next retail pump.

Cynical Take: Nothing makes Wall Street love a stock like FOMO chasing a 52-week high. Enjoy the ride—just watch the door when the music stops.

Image source: Getty Images.

An analyst's favorable opinion is music to investors' ears

On Monday, investors learned that they weren't the only ones enthusiastic about SoundHound's Q2 2025 financial results. Ladenburg analyst Glenn Mattson upgraded SoundHound stock to buy from neutral and hiked his price target to $16 from $9. With shares of SoundHound closing at $13.55 last Friday, Mattson's price target implies upside of 18.1%.

According to The Fly, Ladenburg predicates its view on SoundHound on the belief that the company is adding value to companies seeking to integrate AI functionality, and the company is demonstrating strong growth potential in the NEAR term. Last week, SoundHound reported impressive second-quarter 2025 financial results. In addition to revenue growing 217% year over year, SoundHound reported non-GAAP (generally accepted accounting principles) earnings per share of negative $0.03, beating analysts' expectations.

With shares rocketing higher over the past two weeks, is it too late to buy SoundHound stock now?

For innovative companies such as SoundHound, there's often volatility in the stock prices as investors wrestle with the company's growth into a more mature company. The recent rise shouldn't dissuade those interested in SoundHound stock. While notable over the past couple of weeks, shares are still down about 16% since the start of the year as of this writing.

Volatility is sure to continue with SoundHound stock, so those who are looking to gain AI exposure, yet have a low risk tolerance, may be more interested in an AI exchange-traded fund.