Why SoundHound AI Stock Is Soaring Today

Key Points

• One market researcher finds SoundHound to be a leader in conversational AI thanks to Amelia 7.

• The company is reporting growing revenue, but it's still unprofitable.

• Investors should be closely focused on the company narrowing its net loss in the coming quarters.

• 10 stocks we like better than SoundHound AI ›

Markets are trending higher this afternoon, poised to end the day on a high note. There seems to be little doubt, on the other hand, whether voice-recognition artificial intelligence (AI) leader SoundHound AI (NASDAQ: SOUN) will see its shares lock in a gain for today's session thanks to positive coverage in a market research report.

As of 2:45 p.m. ET on Thursday, shares of SoundHound were up 11%.

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IDC finds that Amelia is something worth talking about

After collecting a variety of data points -- from customer satisfaction to service offerings to price -- the technology sector researcher IDC MarketScape has decided that the verdict is in: SoundHound AI's Amelia 7 platform is a leader in its 2025 vendor assessment for Worldwide General-Purpose Conversational AI Platforms.

According to Hayley Sutherland, research manager for conversational AI at IDC, Amelia 7 is "a strong offering that is winning praise from customers for its accurate intent recognition, even for complex requests, combined with superior voice channel capabilities."

Amelia 7 is a conversational AI platform for a variety of enterprise uses. By integrating advanced speech recognition, Amelia 7 incorporates generative AI to provide a sophisticated conversational AI agent.

Should investors listen to the market and click the buy button today?

While validation from a market researcher like IDC is a positive sign, it seems that investors are a bit overzealous to rush out and buy SoundHound stock on this news -- especially in light of the company's financials.

To the company's credit, revenue is growing rapidly. Through the first six months of 2025, it posted sales of $71.8 million, compared to $25.1 million during the same period in 2024. At the bottom of the income statement, the net loss has widened, however, over the first two quarters of 2025, compared to the same period in 2024.

For those with SoundHound AI stock on their radars, seeing progress toward achieving profitability in conjunction with growing sales should be a paramount concern.

Should you invest $1,000 in SoundHound AI right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.