Our Stock of the Week is SoundHound AI, Inc. (SOUN). SOUN is a global leader in voice and conversational artificial intelligence (AI). It develops products and solutions that allow businesses to deliver advanced, voice-enabled customer experiences. The company's proprietary technology is focused on voice recognition and conversational intelligence. It integrates large language models to provide fast, accurate, and natural interactions in multiple languages.
SoundHound offers products in these key areas:
Automotive: Powers in-vehicle voice assistants for brands like Hyundai, Kia, Mercedes-Benz, Stellantis, and others, enabling features like voice commerce and navigation.
Restaurants: Smart Ordering and Dynamic Drive-Thru are AI ordering systems used in chains such as Chipotle, Red Lobster, and Peter Piper Pizza to streamline phone and drive-thru ordering.
Enterprise AI: Through its Amelia platform, SoundHound offers AI agents for customer service and employee support in industries like financial services, healthcare, and retail, serving seven of the top ten global financial institutions.
Retail and Other Verticals: Deploys Smart Answering for businesses like fitness chains and personal care companies, automating customer interactions.
Voice Commerce: Develops ecosystems where AI agents facilitate transactions, such as ordering food or booking services directly through voice interfaces in cars or devices.
SOUN also recently launched Vision AI, which integrates visual understanding with its voice platform for more natural AI interaction.
On July 31, SoundHound announced a strategic partnership with Acrelec which is a subsidiary of GLORY LTD which is a Japanese company focused on cash-handling systems. The venture aims to bring advanced, voice-enabled drive-thru systems to restaurants worldwide
The companies will integrate SoundHound's sophisticated Dynamic Drive-Thru voice AI technology with Acrelec's content management system and digital signage enclosures. This combined solution enables customers to place orders seamlessly through an automated voice assistant, which processes requests and sends them directly to the point-of-sale system.The fully integrated system not only offers consumers greater speed and convenience but also helps restaurants optimize labor by freeing up staff to focus on restaurant operations, while remaining available to assist when needed.
Acrelec currently has over 25,000 drive-thru installations worldwide, with leading brands like McDonald's and Dunkin'. The company supports over 80,000 technology deployments globally, including kiosks, self-checkout, and click-and-collect systems.
The most significant recent development for SoundHound AI is its record-breaking second-quarter 2025 financial performance, reported on August 7, 2025. The company achieved revenues of $42.7 million, which is a 217% year-over-year increase and surpassed Wall Street's consensus estimate of $33 million. This growth was driven by strong demand across automotive, restaurant, and enterprise AI sectors, bolstered by strategic acquisitions like Amelia ($80 million) and Allset in 2024.
SoundHound also raised its full-year 2025 revenue guidance to $160–$178 million. Additionally, the company reported a narrower-than-expected non-GAAP net loss of $0.03 per share and a $1.2 billion enterprise bookings backlog, signaling robust future growth. Wedbush calling SoundHound an "under-appreciated pure-play AI company" and raised their price target to $16.
Technically, the stock broke out of a low-level base and formed a 'pocket pivot' pattern. Volume was extremely high and should attract increased interest. There is a large short position also, which may help to fuel additional upside.
As always, we do not plan to chase the open on Monday but will aggressively trade the stock as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in SOUN. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
