SoundHound AI has emerged as a favorite among retail investors as a lower-priced AI play, as well as for its sharp revenue growth and stock swings.
- SoundHound forecast 2026 revenue between $225 million and $260 million, higher than analysts’ expectations of $230.2 million.
- The company’s revenue doubled in 2025.
- Although the stock remained muted post the results, Stocktwits sentiment climbed higher in the ‘extremely bullish’ zone.
SoundHound AI, Inc. issued an upbeat 2026 revenue forecast after more than doubling sales last year, drawing renewed interest from retail traders who said the recent pullback has made the stock increasingly attractive following a strong earnings report.
Traders also anticipated a massive short squeeze, speculating that current market action is due to heavy short interest preparing to cover. Short trades rose sharply over the past months, climbing to 29.4% of the stock’s float as of Thursday from 24.5% in mid-November.
With its stock under $9 and market capitalization under $4 billion, SoundHound AI has gained traction with retail investors as a lower-priced AI play with rapid revenue growth, offering high-upside exposure to the AI theme after bigger names became crowded trades.
Soundhound Q4 Results
The company, which sells voice AI systems to a range of industries, including retail and automobiles, said its fourth-quarter revenue increased 59% to $55.1 million. That came in slightly higher than analysts’ $54 million estimate. Adjusted net loss in Q4 narrowed to $0.02 per share from $0.05, in line with estimates.
For the full-year, revenue increased by nearly 100% to $169 Million.
For 2026, the company expects revenue of $225 million to $260 million. Analysts expect $230.2 million.
“As traditional software faces massive AI disruption, businesses are looking to partner with AI natives that can help them achieve success in a new era. This is creating strong tailwinds for SoundHound,” CEO Keyvan Mohajer said in a statement.
The company detailed a range of new order wins in its earnings report.
Retail’s Reaction To SOUN
On Stocktwits, the retail sentiment for SOUN jumped multiple points higher in the ‘extremely bullish’ zone, with members advising buying shares at current levels.
“$SOUN Solid earnings, great outlook and excellent value at these levels,” said a user, while another said they would be “doubling my position, any pull-backs I’ll load.”
Some traders expressed frustration at the muted stock reaction – SOUN rose a mere 0.1% in the after-market session – and speculated on manipulation by large investors and options traders. Still, they expected SOUN to rally strongly over the company days.
SoundHound shares are down about 66% from their recent peak in October 2025. Before Thursday’s earnings report, they climbed for five straight sessions, rising 27%.
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