SoundHound's stock has been acquired in greater quantities by Vanguard. Is such an investment a viable option for you?
In the rapidly evolving world of artificial intelligence (AI), SoundHound AI is making significant strides, with its voice-enabled technology gaining traction in industries such as automotive, customer care, and enterprise software.
Recent developments in the company's stock market performance are particularly noteworthy. The uptrend in SoundHound AI's stock price over the past year can be attributed, in part, to the investment made by Vanguard Group, a leading institutional investor. Vanguard's acquisition of more than 5.29 million shares in the first six months of 2025 could attract additional institutional interest, reflecting conviction in the company's long-term potential.
As of mid-2025, the institutional ownership of SoundHound AI stock falls between approximately 19% and 41%, with key holders like Vanguard increasing their positions. Other notable institutional shareholders include Geode Capital Management. The exact figures vary slightly across sources, with TipRanks reporting a 31.36% institutional ownership, MarketBeat showing 19.28%, and WallStreetZen reporting a higher figure of 40.89%.
The increase in institutional interest is mirrored by a cautious but generally neutral stance from analysts. SoundHound AI currently holds a Zacks Rank #3 (Hold) rating, with earnings per share (EPS) estimates for 2025 showing expected strong growth (an 84.6% EPS increase year-over-year). However, there have been no recent changes to these estimates in the last 30 days, indicating a stable outlook.
Michael Latimore, a senior Northland Securities analyst, has reiterated his "Hold" rating on SoundHound AI and warned of a potential downside to $8 per share. Despite this, the average price target of $11.50 indicates a potential upside of over 30% from the current levels, suggesting that the market views SoundHound AI as a company with strong growth potential.
However, it's important to note that the current price-to-sales ratio of SOUN stock is 53x, more than double that of Nvidia (NVDA). This indicates that the stock may be fairly valued, with typical risks associated with high-growth AI stocks.
The consensus rating on SoundHound shares remains at "Moderate Buy", but with the stock currently trading above analysts' mean target, some market observers suggest that today's rally may have gone too far.
SoundHound AI's revenue increased by 151% year-over-year in its fiscal Q1, underscoring the company's growth trajectory. For more information, please view the website's Disclosure Policy here.
In summary, the mixed but growing institutional interest in SoundHound AI, combined with a hold recommendation from analysts, reflects a market view that the company has strong growth potential, particularly given its rapid revenue growth and industry applications. However, the stock is currently fairly valued, with typical risks associated with high-growth AI stocks.
Investors are taking notice of SoundHound AI, as institutional ownership of the company's stock falls between 19% and 41%, with key holders like Vanguard and Geode Capital Management significantly increasing their positions. This growing interest in the stock-market performance of SoundHound AI, a company making strides in artificial intelligence and voice-enabled technology, signals a belief in its long-term potential for investing in the stock-market realm, particularly in the technology sector.
