SoundHound AI (SOUN) stock has been in free fall for much of 2025, reflecting the broader reckoning in artificial intelligence stocks after last year’s euphoric rally.
Since the start of the year, SOUN stock has dropped more than 53% and now trades around $10, down roughly 63% from its December peak above $24.
There’s been a notable rebound off the bottom, though.
SOUN has rallied since hitting its April low of $6.52 following President Trump’s “Liberation Day” tariff announcement, which triggered a broad selloff across tech and AI stocks.
This roller coaster — not just in price but in underlying valuations — has caught analysts off guard
As Zacks Investment Research noted, SoundHound’s valuation swings have been extreme even by growth-stock standards.
The company’s forward price-to-sales (P/S) ratio has ranged from as low as 2.92 to as high as 94.4, underscoring both the volatility and investor uncertainty surrounding high-growth AI names.
Currently, SOUN’s 12-month P/S ratio sits just above 20, much closer to the broader IT services industry average, according to Zacks.
That suggests some of the excess valuation premium once baked into SoundHound has now reset.
Voice AI market still in early innings
There’s still a lot of room for growth because SoundHound operates in a rapidly expanding market with significant long-term potential.
According to Fortune Business Insights, the global speech and voice recognition market reached $15.5 billion in 2024 and is projected to surge to $81.5 billion by 2032, growing at a compound annual rate of 26.1%.
A separate report from Market.US forecasts the voice AI agent segment could reach $47.5 billion within a decade.
SoundHound has made visible progress diversifying its customer base, landing new enterprise deals across multiple sectors during Q1, including restaurant chains and automotive OEMs.
No single customer accounted for more than 10% of total revenue, signaling growing stability.
Strong top-line growth despite volatility
Even as its stock price has cratered, SoundHound’s underlying business continues to grow.
Last quarter, the company posted a 151% year-over-year revenue increase to $29.1 million.
Its balance sheet also strengthened considerably, ending the quarter with $587.5 million in cash and cash equivalents, more than triple its total liabilities of $190.5 million.
Looking ahead, management has guided for full-year 2025 revenue of up to $177 million, more than double last year’s total.
SoundHound is scheduled to report its next quarterly results on August 7.
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