SoundHound AI Stock Surges 3.25% on $920M Trading Volume Ranks 103rd Amid Record Q2 Revenue and Strategic AI Advancements

On August 13, 2025, SoundHound AI (SOUN) rose 3.25%, with a trading volume of $0.92 billion, ranking 103rd in market activity. The stock’s recent performance follows a sharp rebound driven by its second-quarter results, which highlighted record revenue and strategic advancements in voice and conversational AI.

SoundHound reported Q2 revenue of $42.7 million, a 217% year-over-year increase, surpassing expectations by $9.8 million. The growth was fueled by its three strategic pillars—Enterprise AI, Restaurants, and Automotive. Notable developments included the launch of Amelia 7, an agentic AI platform, and expansion into China and India with automotive clients. Monthly query volume exceeded 1 billion, and active restaurant locations using its voice solutions surpassed 14,000. The company also raised 2025 revenue guidance to $160–$178 million and aims for adjusted EBITDA profitability by year-end.

Financial metrics showed mixed trends. GAAP gross margin declined to 39% from 63% in the prior year, while non-GAAP gross margin stood at 58.4%. Adjusted EBITDA loss remained at $14.3 million, unchanged year-over-year. Despite these pressures, SoundHound’s cash reserves totaled $230 million, with no debt. Management emphasized cost optimization and efficiency gains from cloud and system upgrades.

Risks include competitive pressures, reliance on large enterprise deals, and potential volatility if growth slows. The stock’s forward price-to-sales ratio of 33.34 exceeds the industry average, reflecting elevated investor optimism. While strategic wins in restaurants and automotive sectors indicate momentum, profitability hinges on sustaining cost discipline and scaling high-margin offerings.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The CAGR was 6.98%, with a maximum drawdown of 15.46% during the backtest period. The strategy demonstrated steady growth over time, making it a robust choice for investors seeking consistent returns. However, the significant drawdown in mid-2023 highlights the importance of risk management in such a volatile scenario.