SoundHound AI Plunges 10.26% as $620M Volume Ranks 152th Amid Inflation Fears

SoundHound AI (SOUN) fell 10.26% on August 19, 2025, with a trading volume of $620 million, ranking 152nd among U.S. stocks. The decline was driven by broader market concerns over inflationary pressures and macroeconomic risks. Recent developments, including Home Depot’s announcement of price hikes due to tariffs, intensified fears of sustained inflationary trends that could delay Federal Reserve rate cuts and pressure growth-dependent tech stocks.

Analysts highlighted that SoundHound’s valuation, which relies heavily on long-term growth expectations, is particularly vulnerable to macroeconomic shifts. While the company has demonstrated strong revenue expansion and leading AI technology, its unprofitable status and high multiple amplify sensitivity to adverse market conditions. The sell-off occurred amid a wider selloff in tech and semiconductor sectors, with the Nasdaq Composite down 1.6% on the same day.

Investor sentiment was further dampened by the Bureau of Labor Statistics’ Producer Price Index (PPI) report, which showed higher-than-expected inflation at the wholesale level. This reinforced concerns that inflationary pressures could spill over to consumer prices, creating a challenging environment for speculative tech plays. Despite recent quarterly revenue growth, SoundHound’s path to profitability remains unclear, with losses widening and a large contract backlog yet to translate into tangible revenue.

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