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Sign InSoundHound AI Sees 9.16% Rise Amid Bullish Momentum and Growing AI Demand, Analysts Stay Bullish
Summary
On June 30, 2025, SoundHound AI's stock surged 9.16% to close at $10.73, as bullish momentum prevails amid strong trading volume and growing demand for its AI solutions, setting the stage for cautious optimism ahead of an upcoming earnings announcement.
Technical Analysis
SoundHound AI (SOUN) closed at $10.73 on June 30, 2025, up 9.16% on strong volume of 24.35 million shares, near but slightly below its average volume of 30.76 million. The stock established an intraday range between $10.05 and $10.93, testing resistance at $11.01. The 50-day moving average ($9.75) remains below the current price, indicating recent upward momentum, while the 200-day moving average at $10.08 acts as near-term support. The Relative Strength Index (RSI) at 59 reflects moderate bullish momentum without overbought conditions. The MACD remains negative (-0.32), signaling some lingering bearish pressure despite the recent price surge. Average True Range (ATR) at 6.39 suggests elevated volatility. Support is solid at $10.11, with a stop-loss positioned near this level.
Short-term, for the next trading day (July 1), the stock can be expected to test resistance around $11.00–$11.10, with the potential for a mild pullback if profit-taking emerges after the strong recent move. Over the coming week, the stock might consolidate between $10.10 and $11.00 as investors digest the recent surge ahead of the earnings announcement on August 14, 2025.
Fundamental Analysis
SoundHound AI is positioned within a growing market of AI-driven voice recognition and service automation, with recent news highlighting expanding demand among restaurant operators for its AI solutions, including ordering, reservations, and parking services. This industry tailwind supports longer-term revenue growth potential.
The company’s trailing twelve-month (TTM) earnings per share sits at a negative $0.61, resulting in an unmeaningful negative PE ratio (-16.7). The negative earnings reflect SoundHound’s early-stage investment in technology and expansion, which is typical for AI growth stocks yet warrants attention for sustainable profitability. The current market capitalization stands at roughly $4.09 billion, a moderate valuation given the company’s position and growth prospects.
Analyst consensus conveys a bullish outlook, with an average target price at $13.00, implying approximately 21% upside from the current price. The consensus rating is “Buy,” with 4 analysts favoring a buy and 3 recommending hold; there are no sell ratings. This sentiment aligns with recent volume spikes and the company’s exposure to growing AI adoption.
Intrinsic value remains challenging to pinpoint precisely due to ongoing losses and the company's maturation phase; however, the price targets and growth indicators suggest the current valuation partially discounts anticipated operational scaling and margin improvements, especially if expansion into restaurant AI proves profitable.
Long-Term Investment Potential
SoundHound AI’s long-term outlook rests on its ability to capitalize on expanding AI adoption within voice-activated services and its capacity to transition to profitability. The firm’s innovative positioning in AI-powered restaurant solutions presents a competitive advantage that could drive sustainable revenue growth if execution remains cohesive. Investors should monitor improvements in earnings, cash flow generation, and customer acquisition costs over upcoming quarters to gauge progress toward durability in fundamentals.
Long-term holders could benefit from capital appreciation if SoundHound navigates the path from growth to profitability successfully. However, persistent losses and elevated volatility contribute to inherent risk.
Overall Evaluation
SOUN presents a clear growth stock profile with near-term momentum supported by positive sector tailwinds and strong volume-driven price movement. Technicals suggest cautious optimism with resistance near $11.00 and solid support around $10.10. The fundamental landscape reflects promising growth drivers but ongoing losses and volatility.
Considering the balance of strong market interest, analyst buy-side consensus, and technical momentum tempered by earnings deficits and inherent execution risk, SOUN qualifies as a Hold candidate. This classification arises from the need for confirmation of sustained earnings improvement and reduction in volatility before shifting to a more aggressive stance.
