Can SoundHound AI Stock Turn Things Around in 2026?

• SoundHound AI's banal mislaid a batch of crushed aboriginal successful 2025 aft investors learned that Nvidia had divested its involvement successful the company.

• While SoundHound AI has grown its revenues significantly, that has mostly been owed to acquisitions.

• The institution hasn't made astir arsenic overmuch advancement connected increasing its bottommost line.

• 10 stocks we similar amended than SoundHound AI ›

SoundHound AI (NASDAQ: SOUN) is simply a dependable artificial quality (AI) institution that attracted immoderate capitalist attraction aft tech elephantine Nvidia revealed successful aboriginal 2024 that it had taken a involvement successful the business. At that point, the banal went connected a tear, rising by a staggering 836% that year.

It has been a overmuch antithetic communicative successful 2025. Nvidia sold disconnected its presumption successful SoundHound AI successful the 4th fourth of 2024, and now, aft a roller-coaster year, the AI banal is down by astir 55% from the highest it touched successful January. While SoundHound AI's full banal show wasn't babelike connected Nvidia's concern successful the business, it's besides hard to understate the effects of it.

Will 2026 beryllium a twelvemonth erstwhile SoundHound AI bounces backmost and wins implicit investors based connected its ain merits and fundamentals, oregon volition it proceed to struggle?

Considering SoundHound AI's awesome gross maturation implicit the past year, it mightiness astatine archetypal look a spot astonishing that the banal is doing truthful poorly. But the earthy numbers conceal a mates of problems underneath the hood.

The archetypal is that the concern has been increasing chiefly owed to acquisitions. Last year, it bought AI institution Amelia, which not lone boosted its apical enactment but besides gave it a beingness successful galore antithetic industries. Up to that point, SoundHound AI's deficiency of gross diversification was a cardinal concern, arsenic it relied heavy connected customers successful the automotive sector.

The 2nd occupation is that portion it has vastly grown its business, its way toward profitability hasn't shown astir arsenic overmuch improvement. In the 3rd quarter, its adjusted nett nonaccomplishment totaled $13 million, which was an betterment from a nonaccomplishment of astir $15 cardinal successful the prior-year period, but that 13% betterment was a acold outcry from the 68% gross maturation it achieved. To person investors it's a bully buy, it volition apt request to importantly trim its losses.

Despite the stock's nosedive successful 2025, SoundHound AI isn't precisely a bargain. It hasn't fixed backmost each the gains it achieved successful 2024. And its marketplace headdress of astir $4.5 cardinal is much than 7 times what it was valued astatine 2 years ago.