SoundHound AI Shares Jump 4.32% on $1.14B Volume (32.71% Daily Rise) Ranking 70th in Market Activity Amid Record Revenue and AI Expansion

SoundHound AI (SOUN) surged 4.32% on September 4, 2025, with a trading volume of $1.14 billion, up 32.71% from the prior day, ranking 70th in market activity. The stock’s performance was driven by a record $42.7 million in second-quarter revenue, a 217% year-over-year increase, and strategic partnerships such as its AI deployment with Primary Health Solutions. Analysts noted improved non-GAAP losses and a narrowed projected 2025 loss, reflecting growing confidence in the company’s growth trajectory.

Key catalysts include the integration of acquisitions like Amelia and Synq3, which enhanced AI accuracy and reduced costs, and the expansion of enterprise solutions in healthcare and quick-service restaurants. The launch of Amelia 7 and partnerships with Samsung and Par Technologies further solidified its market position. However, the stock’s forward price-to-sales ratio of 26.1X, above both its three-year median and industry average, raises concerns about valuation sustainability amid ongoing GAAP losses and rising operating expenses.

Options activity also signaled bullish sentiment, with 224,764 call contracts traded—a 87% increase from average volumes. Despite recent volatility, including a 3.7% pullback earlier in the week, SoundHound’s shares remain 195% above their 52-week low. The company’s cash reserves of $230 million and raised 2025 revenue guidance to $160–$178 million provide liquidity flexibility but highlight the challenge of balancing growth investments with profitability.

The backtest results indicate that SoundHound’s stock has outperformed its industry by 34.6% over three months, with shares trading nearly 49% below their 52-week high. While the stock remains above both its 50-day and 200-day moving averages, analysts caution that its premium valuation and exposure to competitive pressures in the AI sector could lead to sharp corrections if earnings or sentiment shift.