SoundHound AI Inc (SOUN) saw its stock soar 5.04% in the 24 hours leading up to Thursday's pre-market session, continuing a run fueled by speculative excitement around the voice AI company despite concerns that the rally has made its valuation excessively rich.
The surge appears driven more by investor hype around SoundHound's potential in the growing voice technology space rather than concrete business developments. While the company has scored promising deals with automakers and restaurants, and its voice AI offerings are being rapidly adopted, the stock's lofty price-to-sales ratio of 73 as of mid-January suggests the market may be getting ahead of itself.
Analysts praise SoundHound's long-term prospects but warn that the speculative frenzy has left shares overpriced for now. Some recommend waiting for a more reasonable valuation before investing, even as they remain bullish on the company's future at the forefront of voice AI innovation.