SoundHound AI Inc (NASDAQ:SOUN) stock is one of the best tech stocks out there today, up 25.4% to trade at $13.45. The voice-based artificial intelligence (AI) concern posted an adjusted second-quarter loss of 3 cents per share, slimmer than the expected 5 cent loss. Revenue also topped estimates, but investors are really clamoring about the hiked fiscal year revenue outlook, driven by the company's Vision AI platform.
This is poised to be SOUN's best single-session gain of 2025. The shares are now heading for their highest close since Feb. 14. However, the stock is still down 32.5% in 2025, and a far cry from its Dec. 26 record high of $24.98. A shift in analyst sentiment has yet to break, but it could be imminent. The majority of analysts maintain "hold" ratings on SoundHound, while the consensus 12-month price target of $12.56 is a 6% discount to its current perch.
A short squeeze could also keep the wind at the equity's back. Short interest leveled off in the two most recent reporting periods, yet the 121.82 million shares sold short account for nearly a third of the stock's total available float.
Call traders are out in droves today. At last check, over 410,000 calls have crossed the tape, eight times the average intraday volume and almost quadruple the number of puts traded. The weekly 8/8 13.50-strike call is the most popular, while the standard expiration, August and September 15 call is also seeing noteworthy activity.
