Why SoundHound Stock Soared Today

Shares of SoundHound AI (NASDAQ: SOUN) climbed higher on Wednesday. The company's stock gained 6.9% as of market close but was up as much as 12.2% earlier in the day. The surge comes as the S&P 500 gained 0.4% and the Nasdaq Composite gained 1.2%.

The voice artificial intelligence (AI) specialist presented at the 2025 Cantor Fitzgerald Global Technology Conference yesterday, laying out its current position and vision for the future.

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Growing market penetration

At the conference, SoundHound said it is making significant inroads across multiple sectors. In the automotive industry, the company has displaced competitors like Nuance/Cerence and now counts over 20 automotive brands as customers, including a notable integration with OpenAI in Stellantis vehicles.

On the food industry front, SoundHound is working with 7 of the top 20 quick-service restaurants. The company believes other sectors like healthcare and financial services present large opportunities in the future.

SoundHound is in a solid place

SoundHound holds $200 million in cash, has no debt, and expects to be positive by year-end in earnings before interest, taxes, depreciation, and amortization (EBITDA). That's a good position to be in for a company at the cutting edge of a new technology.

However, SoundHound is in a highly competitive space where new entrants can pop up and large tech companies constantly evolve their own product offerings. While its path to profitability was laid out by management at the conference, many unforeseen obstacles could lie in its way. It's also significant that Nvidia, which had taken a significant stake in the company, sold all of its shares recently. There are a lot of unknowns for SoundHound at the moment, but if you have a high-risk tolerance, it could be an interesting play.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.