Down Over 50%, Should You Buy the Dip on SoundHound AI Stock?

• Euphoria gave the way to despair after NVIDIA sold its share in Soundhound.

• Investors need to develop their arrow’s investment theses instead of responding to NVIDIA.

• A good management thesis will include a realistic vision for future competition.

• 10 shares we love better than Soundhound AI ›

Shareholders Soundhound ai (Nasdak: Sun) They were riding high in 2024 after the arrow recorded an incredible profit of 836 % for this year. But 2025 is different stories. Soundhound shares decreased by 55 % of its highest level ever in late last year.

The rise and fall of SoundHound shares has a common denominator: Nafidia. In early 2024, NVIDIA revealed that it recently invested in some promising artificial intelligence shares (AI), including Soundhound AI. The shares have risen because investors believe that this has been validated by the company’s small technology.

In early 2025, the opposite happened when NVIDIA revealed that it sold its share in the company.

Purchase or sale of an arrow can be based on the actions of another investor – in this case, NVIDIA – a bad idea. It is important for investors to have their own investment thesis, or an organized argument due to the long -term rise. With this in mind, I want to explore the Soundhound AI share today.

Soundhound Ai provides vocal subsidized technology for car and restaurant companies and other industries. It is first considered the engine in space, and it tends to two decades of experience. But the growth of its revenues has not been stimulated until the relatively modern artificial intelligence revolution. Now, its revenues increase with the growth of the entire year’s revenues by 85 % in 2024 and amazing growth on an annual basis in the first quarter of 2025.

Saudi investors invest these numbers, especially because of the totalable market. According to the administration, the company has a market opportunity of $ 140 billion. For perspective, it gets much less than 1 % of its theoretical market to this writing.

In other words, Soundhound grows at the rate of turning the head, and it appears that the amphitheater is huge. This mixture may lead to many years of growth – a large factor for stocks that work well in the long run – this is why investors are excited by the company.

They are also enthusiastic about Soundhound profit prospects. The administration believes that it will achieve profitability by the end of this year based on the profits amended before interest, taxes, depreciation and firefighting (EBITDA). This is a big step forward when thinking about the long -term feasibility of any work.

In order to be clear, Soundhound is not yet profitable-it has a huge loss of 12 months at a value of $ 188 million. But with $ 246 million in cash, not debt, the company is based on a strong financial basis because it moves towards a tie.

Simply put, Soundhound’s share can be a winning investment because it is a quick -growing work in a huge industry, and its financial statements are directed in the right direction.

So Soundhound believes that its market opportunity is more than $ 140 billion. The administration also believes that the company has a competitive advantage in space because it is known as the “white brand”. While major companies may have similar sound technical solutions on the market, these companies usually want to slap their brand over them. On the other hand, SoundHound works behind the scenes, while maintaining the brand for its customers in the foreground and center.

To play the Devil’s lawyer, you are not sure that this is actually a competitive advantage for Soundhound. For example, car manufacturers have no problem in placing other brands in their cars, including Siriusxm Satellite radio and amplifiers JBL.

Soundhound also features a great beginning in the space of Voice Aid International. But the tremendous progress in artificial intelligence can cut its progress. In the first -quarter profit call, the administration admitted that the mutation in the AI ​​applications has increased competition in recent years.

Moreover, the competition is likely to come from technology giants in the next few years. Soundhound technology in AI Agentic technology plays – artificial intelligence that can make more independent decisions on behalf of the user. All big players work to treat this completely, and it appears to collide to face with Soundhound.

For example, alphabet It is a leading company in artificial intelligence, and its product gets Android Auto Ford and general Engines.

Prefabble meals are not that the SoundHound stock is convicted. On the contrary, the work works well.

Prefabbed meals are that investors should remember the road to the market of $ 140 billion in SoundHound will not be free from competition. If anything, the competition will only intensify.

For investors who believe that Soundhound has what is necessary to challenge the largest technology players in the world, the stock may be a be careful purchase in light of 55 % of its peak.

But personally, I was waiting for the margin to find out how the competition is developing next year. I am not worried about a train loss, if it is permissible to speak. If the market opportunity is very large as you think Soundhound, this story will still have a long time to play, allowing investors to the patient to evaluate the company’s competitive position.

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Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Jon Quast has no position in any of the mentioned shares. Motley Fool has positions in Alphabet and NVIDIA and recommends it. Motley recommends a lie of General Motors. Motley Fool has a disclosure policy.

A decrease of more than 50 %, should you buy a decline on Soundhound AI? It was originally published by Motley Fool