The re indicates that It's worth noting that SoundHound AI (SOUN 4. Moreover, 51%) stock saw a dramatic valuation pullback across the first half of this year's trading.
The evidence shows company's price fell 45. On the other hand, 9% January through June despite a gain of 5. At the same time, 5% for the S&P 500 index across the stretch, in light of current trends.
SoundHound's valuation pullback in the first half of 2025 was partially a reaction to the strong gains that the stock saw in 2024.
Nevertheless, Some macroeconomic and -specific catalysts also caused investors to sell s, but the stock has also been on a winning streak in recent trading. Image source: Getty Images.
Why SoundHound AI stock sank in 2025's first half SoundHound AI stock got off to a rough start this year (quite telling), considering recent developments.
The conversational artificial intelligence (AI) specialist saw a steep valuation decline after Chinese AI firm DeepSeek rolled out its R1 model (this bears monitoring), in today's market environment.
SoundHound AI stock was also hit with pullbacks in conjunction with this year's CES expo, given current economic conditions.
In contrast, Investors had been hoping that the company would announce some ground new ducts or partnerships at CES, but the trade show wound up ducing less favorable indicators, given current economic conditions.
Nvidia made announcements its intentions to expand in the agentic AI space that SoundHound AI is looking at as a key growth market (this bears monitoring).
SoundHound AI stock then got hit with another big pullback in conjunction with Nvidia-related news.
In February, the AI hardware leader submitted its investment holdings to the Securities and Exchange Commission (SEC), and the routine disclosure revealed that Nvidia had sold its stake in SoundHound AI, in light of current trends.
Nvidia's investment in the company had played a significant role in powering valuation gains for the company, and news of the divestment mpted a substantial sell-off for SoundHound AI, in today's market environment.
Furthermore, The stock did see a spike in May after the company published its first-quarter results. Sales increased 151% year over year to reach $29.
1 million, and the posted a non-GAAP (adjusted) loss of $0. 06 per in the period.
Revenue in the quarter came in significantly ahead of the market's target, and the stock moved higher after the earnings report. What's next for SoundHound AI.
SoundHound AI stock has gained ground in July's trading as investors have ramped up bets on growth stocks (which is quite significant).
Furthermore, The company's price is up roughly 8% in the month so far as I write this (remarkable data), given current economic conditions.
SoundHound AI is guiding for sales this year to come in between $157 million and $177 million (remarkable data), given the current landscape.
If the company were to hit the midpoint of its sales guidance target, that would mean dering annual sales growth of roughly 97% over the $84 (this bears monitoring).
However, 7 million in revenue it posted last year. Hitting that midpoint would also mean a substantial acceleration over the annual sales growth of 85% the posted last year.
In contrast, Valued at roughly 29 times this year's expected sales, SoundHound AI has a heavily growth-dependent valuation, but the sales ramp for its services has been impressive so far, amid market uncertainty.
Keith Noonan has no position in any of the stocks mentioned, amid market uncertainty. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.