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SoundHound AI (SOUN) Surges 26.4% on Strong Earnings, Higher Growth Outlook

By Angelica Ballesteros | August 09, 2025, 10:09 AM

We recently published 10 Stocks with Eye-Popping Gains; 5 Jump to New Highs. SoundHound AI, Inc. (NASDAQ:SOUN) is one of the best-performing stocks on Friday.

SoundHound AI snapped a two-day losing streak on Friday, soaring 26.4 percent to close at $13.55 apiece as investor sentiment was boosted by its strong earnings performance and higher growth outlook for the year.

In an updated report, SoundHound AI, Inc. (NASDAQ:SOUN) said it narrowed its non-GAAP net loss by 20 percent to $11.86 million from $14.89 million in the same period last year, but widened its GAAP net loss by 100 percent to $78 million from $37 million year-on-year.

SoundHound AI (SOUN) Surges 26.4% on Strong Earnings, Higher Growth Outlook
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Revenues, on the other hand, soared by 217 percent to $42.68 million from only $13.46 million in the same period last year.

Encouraged by the strong figures, SoundHound AI, Inc. (NASDAQ:SOUN) raised its full-year revenue growth outlook to a range of $160 million to $178 million, from the previous forecast of $156 million to $177 million.

Following the results, Northland Securities raised its price target for the company to $14.5 from $8 previously, while upgrading its rating to “outperform” from “market perform” on expectations that SoundHound AI, Inc. (NASDAQ:SOUN) will achieve a 36-percent growth in the second half of the year and 52 percent in the fourth quarter alone.

While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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