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SoundHound is transforming into an agent AI company.
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Its voice-first approach could be a huge differentiator for the business.
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If it can achieve EBITDA profitability next year, that could be a big tailwind for the stock.
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10 stocks we like better than SoundHound AI ›
When looking at artificial intelligence (AI) stocks that have been through tough times, Sound Hound Artificial Intelligence (NASDAQ: SOUN) is one of the more interesting stocks that could rebound in 2026. The stock is down more than 50% from its 52-week high and nearly 40% this year.
SoundHound first came to attention in NVIDIA It was revealed that it took a stake in the voice artificial intelligence company in the fourth quarter of 2023. The chip giant later sold its stake in the company at a substantial gain in the fourth quarter of 2024, a fact that caused the company’s stock price to plummet when it was revealed earlier this year.
However, SoundHound is already on a very different path than when Nvidia acquired it, which could set it up for a strong rebound in 2026.
SoundHound is still a very young company, but it already has a history of quickly adapting to the changing technology landscape. The company actually started out as a music recognition app, but it leveraged its work on the technology to create a voice AI platform.
Its voice technology does more than simply transcribe what someone says or respond with pre-programmed answers. Instead, it seeks to interact with people more naturally, understanding someone’s intention before they finish speaking, just like humans. It is able to do this through the patented “Speech to Meaning” and “Deep Meaning Understanding” technologies it developed.
The company gained early traction in the automotive space as automakers began looking for better voice assistants for their cars. SoundHound’s platform makes it easier for car owners to interact with their vehicles. With just a voice command, they can get directions or find nearby restaurants that match certain criteria. It can also provide real-time assistance to drivers through the car manual.
SoundHound is also establishing itself in the restaurant industry. Here, it takes orders by phone, kiosks and drive-thru. It even offers solutions to help employees complete tasks via headsets when they need help.
However, after acquiring Amelia last year, SoundHound once again sought transformation. Amelia is a virtual agent provider for regulated industries such as healthcare and financial services, which have compliance considerations and industry-specific terminology. Amelia’s technology is strong in conversational intelligence, such as recognizing context and emotion, but it doesn’t have SoundHound’s speed and accuracy in processing natural language.
