SoundHound AI (SOUN -5.77%) is a tiny company that specializes in voice and conversational AI solutions for a broad spectrum of industries. You may have used SoundHound AI's technology without even realizing it.
Large car manufacturers, including Hyundai (HYMTF -1.67%) and Stellantis (STLA -1.33%), use SoundHound's Houndify Voice AI platform for hands-free in-vehicle voice assistance. SoundHound AI is used by a number of large restaurant, hotel, and retail chains for voice ordering and customer service. Music-streaming platform Pandora uses Houndify's voice recognition technology.
Founded in 2005 by a group of Stanford graduates, SoundHound AI went public via a merger with special-purpose acquisition company (SPAC) Archimedes Tech SPAC Partners Co. in a 2022 deal that valued the company at $2.1 billion. SoundHound AI stock now trades on the Nasdaq Stock Exchange under the ticker SOUN.
SoundHound AI's stock price soared by 836% in 2024 but had tanked by almost 50% year to date as of mid-March 2025. Much of that drop can be attributed to the news that behemoth chipmaker Nvidia (NVDA -7.03%) sold its entire stake in SoundHound AI, according to recent filings with the U.S. Securities and Exchange Commission.
Investing in SoundHound AI stock could provide an opportunity to get in on an AI startup with high upside potential. However, the stock is highly volatile. In this article, we'll walk you through how to invest in SoundHound AI stock, including its profitability record, dividend history, and what to consider before you buy shares.
Stock
How to invest
How to buy SoundHound AI (SOUN) stock
Follow these steps to invest in stocks, whether you're buying shares of SoundHound AI or another publicly traded company
Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments.
Step 2: Search for the stock: Enter the ticker (SOUN) or company name into the search bar to bring up the stock's trading page.
Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Step 5: Submit your order: Confirm the details and submit your buy order.
Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
Should I invest in SoundHound AI stock?
Investing in SoundHound AI -- or AI stocks in general -- isn't right for everyone. Let's break down some scenarios where it might make sense to invest in SoundHound AI, as well as some situations where the stock doesn't belong in your portfolio.
Consider investing in SoundHound AI stock if:
- You're excited about the future of AI voice technology and believe SoundHound AI can continue to grow its revenue and market share. In addition to its partnerships with major automakers, SoundHound AI's voice-powered solutions are used by seven of the 20 largest quick-service restaurants in the U.S. The company believes its revenue will increase to between $157 million and $177 million in fiscal 2025, which would translate to growth of 85% to 109%.
- You believe that SoundHound AI can continue to diversify its business. SoundHound AI continues to diversify into new industries, such as financial services, healthcare, energy, and insurance. Focusing on a broad range of industries provides some protection against sluggish performance in a particular sector and allows SoundHound AI to broaden its reach.
- You believe that SoundHound AI could get acquired by a larger company. When a start-up like SoundHound AI gets acquired by a larger company, shareholders often reap the rewards in the form of a premium buyout price.
- You have a high risk tolerance. SoundHound AI has a beta of 2.84, which translates to extreme volatility. Essentially, for every 1% movement in the overall stock market, you'd expect SoundHound AI's stock price to move by 2.84%. Given the wild swings in its stock price, it's only appropriate for investors who are willing to accept big risks in exchange for the high upside.
Consider avoiding SoundHound AI stock if:
- You believe that SoundHound AI's competitors have an advantage. The race to develop new AI technologies is fierce, and SoundHound AI faces heavy competition from much larger companies, including Apple (AAPL -3.82%), Google parent company Alphabet (GOOG -1.92%)(GOOGL -1.85%), and Amazon (AMZN -2.58%), which have far more resources.
- You've lost confidence in the stock due to Nvidia's sell-off. Nvidia recently sold its entire $33 million stake in SoundHound AI. That may be chump change for a company that's worth almost $3 trillion like Nvidia, but if you're worried that Nvidia's decision signals trouble ahead, it's best to steer clear.
- You're investing money that you may need in the next few years. Investing in AI stocks is inherently risky, particularly when you're putting money in a small start-up like SoundHound AI that continues to post large losses. If you're not committed to staying invested for the long term, the stock isn't for you.
- You're seeking investment income. SoundHound AI is unlikely to pay a dividend in the near future, which makes it a poor choice for income investors.
Profitability
Is SoundHound AI profitable?
SoundHound AI isn't yet profitable, which isn't unusual for fast-growing tech companies. In fiscal 2024, the company's year-over-year revenue soared by 85% to about $84.7 million. However, it reported a generally accepted accounting principles (GAAP) operating loss of around $350 million, a 294% change from fiscal 2023's GAAP operating loss of $68.6 million.
Though growing losses may worry investors, management attributes much of the change to factors like the company's $80 million acquisition of enterprise AI software company Amelia, higher stock-based compensation due to the company's soaring stock price at the end of 2024, and increased research & development (R&D) spending. Non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) losses, which often exclude one-time expenses for things like acquisitions, as well as stock-based compensation, were significantly lower at $62 million.
One potentially positive piece of news the company reported: It has a subscriptions and bookings backlog of roughly $1.2 billion, a 75% year-over-year increase, which suggests growing demand for its products. Assuming SoundHound AI can translate that backlog into revenue, it could bode well for its future.
Dividends
Does SoundHound AI pay a dividend?
SoundHound AI doesn't pay a dividend, and its Form 10-K, filed with the SEC in March 2025, says it doesn't intend to do so for the foreseeable future. That isn't surprising, considering that it's a young AI startup that's focused on growth and developing cutting-edge technologies. Companies that pay dividends tend to be mature businesses with stable earnings; start-ups typically reinvest their excess cash into growing the business.
Exchange-Traded Fund (ETF)
ETFs
ETFs with exposure to SoundHound AI stock
A few smaller exchange-traded funds (ETF) include SoundHound AI stock in their holdings, including:
- VanEck Social Sentiment ETF (BUZZ -4.7%): The fund invests in 75 U.S. stocks that are deemed to have positive investor sentiment and a bullish outlook based on aggregated sources, like social media, blog posts, and news articles. The fund has net assets of $50.6 million, with its stake in SoundHound AI accounting for 0.95% of its holdings. The ETF's expense ratio is 0.76%, amounting to $7.60 in fees on a $1,000 investment.
- Global X Robotics & Artificial Intelligence ETF (BOTZ -2.1%): The ETF has 46 holdings and invests in companies at the forefront of developing robotics and AI technology. SoundHound AI represents about 1.34% of its holdings. The fund has about $2.6 billion in assets under management (AUM). Its expense ratio is 0.68%, which means you'd pay $6.80 in fees on a $1,000 investment.
- Vanguard Information Technology ETF (VGT -3.38%): The fund has around $97 billion in AUM and tracks an index of stocks that measures the performance of domestic information technology stocks. It has 314 holdings, one of which is SoundHound AI, which accounts for a minuscule 0.06% of its value. Its ETF expense ratio is 0.09%, which translates to just $0.90 in fees on a $1,000 investment.
Stock splits
Will SoundHound AI stock split?
SoundHound AI hasn't announced plans for a stock split, and investors shouldn't expect one anytime soon. One of the primary reasons companies split their stock is to make it appear more affordable to retail investors. This often happens when shares are trading for several hundred dollars. As of this writing, SoundHound AI stock traded for roughly $10 per share, making it easily accessible to most investors.
Related investing topics
The bottom line on SoundHound AI stock
SoundHound AI stock could present an exciting opportunity to get in on a young and promising AI company, but investors should be prepared for high volatility. The company faces heavy competition from giants like Google and Apple in the crowded race to be at the forefront of AI. Investors should also be comfortable with the company's recent losses. Investing in SoundHound AI could lead to big profits, but it's not suitable for money you can't afford to lose.
FAQ
FAQ: Investing in SoundHound AI
Can I buy SoundHound AI stock?
SoundHound AI is publicly traded on the Nasdaq exchange, which means you can buy the stock. To buy shares, enter the ticker "SOUN" on your broker's website or app. Then, indicate the number of shares you're buying and whether you're placing a market order or limit order before executing the trade.
Is SOUN a good investment?
SOUN could be a good investment, depending on your goals, but it's a young company that faces intense competition and is not yet profitable. It's not an appropriate investment if you're buying shares with money you'll need in the next few years, or you don't have the appetite for substantial risk.
What is the best AI stock to invest in?
There's no single best AI stock to invest in, but fortunately, you don't need to pick one winning stock to be a successful AI investor. You can invest in many different AI companies by purchasing shares of an ETF like the Global X Robotics & Artificial Intelligence ETF or the iShares Future AI & Tech ETF (NYSEMKT:ARTY).
Who owns SoundHound AI?
SoundHound AI is a publicly traded company, which means it's owned by its shareholders. Its top institutional investors are the Vanguard Group Inc., BlackRock (NYSE:BLK), and Geode Capital Management.
