Should I buy SoundHound stock in 2025?

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At HelloSafe, our expert has been monitoring SoundHound's performance for more than three years. Every month, hundreds of thousands of users in Canada rely on us to analyze market trends and spot the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by SoundHound.

What is SoundHound?

How much is SoundHound stock?

The price of SoundHound stock is rising this week. As of today, SoundHound shares are trading at $9.15 USD, with a 24-hour decrease of 1.51% but showing a strong weekly gain of 11.59%.

The company’s market capitalization stands at $3.67 billion, and the average daily trading volume over the past three months is 33.88 million shares. SoundHound currently has no P/E ratio as it remains unprofitable, offers no dividend, and displays a high beta of 3.01.

Investors in Canada should note that while the stock demonstrates high growth potential, its elevated volatility requires careful consideration.

Our full analysis on SoundHound stock

After reviewing SoundHound AI's latest financial disclosures and analyzing the stock's performance over the last three years, our proprietary models—which synthesize quantitative financial indicators, technical signal patterns, real-time market data, and a deep analysis of competitors—uncover robust signals warranting renewed focus on this innovative AI stock. The convergence of rapid revenue acceleration, major client wins, and technical resilience amidst sector volatility suggests that SoundHound may stand at a pivotal inflection point. So, why might SoundHound stock once again become a strategic entry point into the booming artificial intelligence ecosystem in 2025?

Recent Performance and Market Context

SoundHound’s share price trajectory over the past year reflects remarkable resilience and mounting investor enthusiasm. As of May 2, 2025, the stock trades at $9.15, posting a 107.5% one-year gain and a 78.0% advance over six months. In just the last week, shares climbed by 11.6%—a testament to building positive momentum ahead of quarterly results. This dynamic stands out, especially against a backdrop of macroeconomic recovery and a robust appetite for next-generation AI plays on North American exchanges.

Several recent catalysts underpin this momentum:

• Raised Full-Year Guidance: The company updated its 2025 revenue outlook to $157–177 million, implying nearly 97% growth at the midpoint—well above sector averages.
• Major Partnership Announcements: New collaborations with Tencent, Rekor, and leading healthcare networks signal growing enterprise validation.
• Market-Wide AI Tailwinds: The generative and conversational AI space remains one of the fastest-growing segments in technology, spurred by re-acceleration in enterprise tech spend and an improving rate environment that benefits innovative growth stocks.

In short, SoundHound is not only outpacing the S&P 500 technology sector but also emerging as a standout in the application software space, setting the stage for continued upward price discovery.

Technical Analysis

Technical metrics suggest that SoundHound could be entering a constructive base-building period, offering an appealing risk/reward profile for accumulation:

• Relative Strength Index (RSI): At 55.22, the RSI signals neither overbought nor oversold conditions, suggesting the stock retains significant room for upside without facing immediate technical exhaustion.
• Moving Averages Alignment: The stock currently trades above its 20-day moving average ($8.44) and near its 50-, 100-, and 200-day moving averages (all clustered near $9.00), demonstrating strong mean reversion and support at these levels.
• MACD: While showing a slightly bearish print at -0.33, the MACD remains close to the zero line within a consolidation range—a formation often preceding strong directional moves, especially as volatility increases pre-earnings.
• Support and Resistance: Robust support is evident at $8.88–$8.94, with significant resistance in the $9.61–$10.20 zone. A decisive close above these upper bands could unleash further bullish momentum, positioning the stock for a possible approach to consensus target levels.

Crucially, the current technical structure highlights a period of consolidation—commonly seen as advantageous for medium-term positioning ahead of anticipated catalysts.

Fundamental Analysis

On the fundamental front, SoundHound’s growth metrics are nothing short of compelling. In Q4 2024, revenue skyrocketed 101% year-over-year to $34.54 million, culminating in a full-year figure of $84.7 million (+85%). For 2025, management’s revised outlook places annual revenue at $157–177 million, a near doubling within twelve months—a rare feat even within high-growth technology sectors.

• Gross Margins: Non-GAAP gross margins now exceed 58%, driven by premium offerings in AI-automated voice and conversational intelligence.
• Cash and Balance Sheet: With $198 million in cash and zero debt, the company features an outstanding liquidity profile, reducing the risk of near-term dilution or funding constraints.
• Profitability Trajectory: Although not yet profitable (P/E N/A; EPS TTM: -$1.04), negative EBITDA narrowed quarter-over-quarter, and scale benefits from a rapidly expanding customer base suggest SoundHound may be on a path toward eventual operating leverage.

In terms of valuation, while the Price/Sales ratio at 36.6 is elevated, this is often justified by the magnitude and visibility of future growth—underscoring a quality-over-quantity premium common in early-stage platform leaders in AI. It’s notable that the analyst consensus price target sits at $13.93, reflecting approximately 30% upside from current levels, even after the impressive recent run.

SoundHound’s structural strengths amplify the bullish fundamental case:

• Innovation Leadership: Proprietary agentic AI, generative capabilities, and ground-breaking deployments in automotive, healthcare, and retail.
• Client Diversification: Embedded with 30% of the world’s top-20 quick-service restaurant brands, with initiatives also spanning fintech, automotive, and health.
• Brand Recognition: Multiple industry awards and strategic accolades reinforce competitive barriers and product stickiness.

Volume and Liquidity

The liquidity profile of SoundHound is a further pillar of confidence:

• High Average Daily Volume: Approximately 33.9 million shares are traded daily (3-month average), providing exceptional ease of entry or exit for retail and institutional investors alike, and indicating sustained market engagement and active price discovery.
• Float Optimization: With a market cap of $3.67 billion and a sizable float, SoundHound’s high turnover often correlates with dynamic price movements—favourable for tactical investors seeking momentum but also underpinning the kind of sustained interest seen around sector leaders.

This robust trading environment is often interpreted by sophisticated investors as a sign that institutional capital remains actively engaged, potentially paving the way for continued re-rating as forward milestones are achieved.

Catalysts and Positive Outlook

Looking ahead, several high-conviction catalysts are poised to drive further value realization:

• Product Pipeline: Agentic AI and voice commerce platform innovations, including the industry’s first in-vehicle on-demand ordering system, are launching in partnership with marquee automotive and QSR brands.
• Geographic Expansion: Penetration into Europe and South America, including new deployments with Lancia (Stellantis), Togg, and Telefónica, broadens the company’s international addressable market—diversifying revenue streams and mitigating region-specific risks.
• Strategic Partnerships: Joint ventures with Tencent for in-car AI and Rekor for emergency systems exemplify the transversal application of SoundHound’s technology, opening doors to high-value verticals beyond core markets.
• ESG and Industry Plaudits: SoundHound’s multiple recognitions, including as Frost Radar™ Leader and AutoTech Breakthrough Award winner, not only enhance its brand equity but also appeal to institutional investors increasingly focused on sustainability and governance metrics.

From a macro perspective, ongoing digital transformation initiatives, AI adoption surges, and regulatory support for responsible AI (especially in North America and Europe) are expected to further boost demand over coming quarters.

Investment Strategies

Given the convergence of technical consolidation and multi-faceted growth prospects, several entry strategies emerge:

• Short-Term Tactical Positioning: For active traders, entering near support levels ($8.88–$9.00) and taking positions ahead of the Q1 earnings release on May 8, 2025, could allow participation in event-driven upside, should reported results beat expectations.
• Medium-Term Accumulation: Investors seeking sustained momentum may find the current convergence of moving averages and rising volume supportive—particularly as guidance lifts and new partnerships come online.
• Long-Term Structural Allocation: For those with a multi-year investment horizon, SoundHound’s combination of technology leadership, expansive TAM, and seasoned management team make it a compelling candidate to anchor an AI-focused portfolio.

Practically, potential buyers may wish to monitor further consolidation in the $9.00 area, while also preparing for staged entry should the stock break and hold above the $9.61–$10.20 resistance band on strong volume.

Is It the Right Time to Buy SoundHound?

In summary, SoundHound AI stands out as one of the most exciting pure-play opportunities at the intersection of AI, enterprise software, and embedded voice technology. Its accelerating topline growth, fortified balance sheet, blue-chip client roster, and persistent innovation are underpinned by powerful secular and structural tailwinds. While premium valuation and ongoing losses are not without risks, the scale of opportunity and tangible evidence of execution suggest that the fundamentals justify renewed and even rising interest at this juncture.

With strong technical support levels intact, high liquidity, and pivotal catalysts on the near horizon, SoundHound stock seems increasingly well-positioned to enter a new bullish phase. Investors searching for access to the booming AI economy may well view current prices as an excellent entry point to capture the next wave of upside potential.

As AI adoption continues to accelerate globally and SoundHound’s innovation pipeline delivers tangible commercial traction, the current setup appears to offer an outstanding opportunity for those keen to participate in the future of AI-powered voice intelligence.

How to buy SoundHound stock in Canada?

Buying SoundHound AI (SOUN) stock online is now a straightforward and secure process for Canadian investors. Regulated brokers—authorized by agencies like IIROC or the CSA—offer modern, easy-to-use platforms accessible from your computer or smartphone. You can buy shares for the long term (spot buying) or use Contract for Difference (CFD) products for shorter-term, leveraged trading. Both approaches have their pros and cons, and the right one depends on your goals and risk tolerance. To help you choose, you'll find a comprehensive broker comparison further down this page.

Spot buying

A spot, or cash, purchase means you buy actual SoundHound shares in your name and become a part-owner in the company. With most Canadian brokers, you’ll typically pay a fixed commission per order—generally between $5 and $10 (CAD or USD, depending on the account). Most brokers also offer commission-free options for U.S. stocks.

Important information

Example: Suppose SoundHound trades at $9.15 USD per share (as of May 2, 2025). With a $1,000 USD investment (approx. $1,370 CAD), you could purchase around 109 shares ($1,000 ÷ $9.15 ≈ 109), with a $5 trading fee deducted.

✔️ Gain scenario: If SoundHound’s share price rises by 10% to $10.07, your 109 shares would now be worth approximately $1,100 USD.
Result: That’s a $100 gross gain, or +10% return on your original investment (before any taxes or currency exchange considerations).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on SoundHound stock’s price movements without owning actual shares. Popular with active traders, CFDs are offered by specialized regulated brokers. Instead of a fixed commission, you’ll typically pay a small spread (the difference between buy and sell price), plus overnight financing costs if you hold the position beyond one trading day. CFDs also enable leveraging your investment—potentially amplifying both gains and losses.

Important information

Example: You open a CFD position on SoundHound with 5x leverage. With a $1,000 margin, your total market exposure is $5,000.
✔️ Gain scenario: If SOUN rises by 8%, the market move is amplified 5x: your position returns 40%, or $400 gain on your $1,000 stake (excluding spreads and financing fees).

Final advice

Before investing, it’s essential to compare brokers’ fees, available platforms, and trading conditions—which can differ significantly for spot purchases and CFDs. The best method for you depends on your investment horizon, risk appetite, and preferred strategy. Explore our comparison table below to find a regulated broker that matches your needs, and remember: investing always involves risk, but choosing your approach wisely maximizes your potential for success.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying SoundHound stock

The latest news about SoundHound

SoundHound AI shares gained 11.6% over the past week, signaling robust short-term momentum. This continued outperformance aligns with the company’s positive year-end financials and renewed growth outlook, drawing increased attention from North American investors. The rise is particularly noteworthy as it surpasses the NASDAQ Composite’s performance over the same period, suggesting growing confidence in SoundHound’s business model and strategic prospects. Canadian investors, who tend to monitor U.S.-listed technology plays closely for cross-border capital appreciation, may find this outperformance especially noteworthy given the escalating demand for AI-driven solutions in North America.

SoundHound reported a 101% year-over-year revenue increase in Q4 2024, with annual revenue up 85%, exceeding analyst expectations. The company's quarterly revenue reached $34.54 million against consensus estimates of $33.7 million, while full-year revenue of $84.7 million highlights accelerating adoption across multiple verticals, including automotive, healthcare, and quick-service restaurants. Importantly, the firm’s raised guidance for FY 2025—projecting $157 to $177 million in revenue—reflects management’s confidence in capturing further market share. For Canadian financial professionals, these results underscore SoundHound’s ability to deliver outsized top-line growth in a competitive sector, offering a compelling narrative for those targeting high-growth U.S. AI equities with exposure to North American and global innovation ecosystems.

SoundHound’s partnerships with global firms—including Tencent and major automotive brands—signal expanding market reach and rising international profile. Building on collaborations with Lucid Motors, Togg, and a recent launch in Lancia vehicles in Europe, SoundHound’s strategic alliance with Tencent to deliver voice AI to smart vehicles demonstrates the company’s capacity to execute global-scale initiatives. These moves not only amplify SoundHound’s technological footprint but also open the door to further commercial partnerships, including prospective connections with Canadian automotive suppliers or OEMs seeking to enhance in-vehicle digital experiences. This internationalization could serve as a template for future U.S.-Canada technological cooperation, especially as Canadian automotive clusters increasingly prioritize AI-driven enhancements.

SoundHound maintains a strong liquidity position with $198 million in cash and no debt, enabling continued investment in growth-oriented R&D. This healthy balance sheet eliminates near-term funding risk and positions the company advantageously for continued investment in its proprietary AI platform, agentic technologies, and vertical-specific products such as its recently unveiled in-car voice commerce solution. This financial resilience is a key consideration for Canadian institutional investors and asset managers, who often prioritize capital stability when evaluating emerging U.S. tech firms for inclusion in growth-oriented mandates or cross-listed fund vehicles.

Technical indicators remain mostly constructive, as the stock trades above its 20-day moving average and displays improving price momentum. Despite a slightly bearish MACD reading, the relative strength index (RSI) of 55.22 and proximity to major moving averages suggest potential for further positive price action, especially as the market anticipates SoundHound’s Q1 2025 earnings report on May 8. These technical signals may be of particular interest to Canadian quant funds and technical traders seeking asymmetric opportunities within the North American AI sector, especially given SoundHound’s high liquidity and volatility profile which enable dynamic trading strategies.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.