SoundHound AI Inc's (SOUN) stock surged 5.16% in pre-market trading on Wednesday, despite the company's lackluster performance at the recently concluded CES 2025 event in Las Vegas. According to reports, SOUN's much-hyped voice commerce technology received negative reviews at CES, with critics labeling it as energy inefficient and including it in the "worst in show" list.

The company's inability to provide timelines on potential deals with automakers for its voice assistant technology and the lack of mention by NVIDIA CEO Jensen Huang about their partnership during his CES keynote also seem to have disappointed investors. However, despite the sell-off in the stock following CES, analysts have not revised their revenue estimates lower, suggesting the weakness may be driven more by retail investor sentiment rather than fundamentals.

SOUN's valuations still appear reasonable, with the stock trading at around 29 times forward sales, while the company is expected to deliver a revenue CAGR of 55% over the next two years and turn EBITDA positive by the end of 2025. As the market shrugs off the CES disappointment, SOUN's pre-market surge may indicate that investors are focusing more on the company's long-term growth prospects.