This Artificial Intelligence Stock Is Down 71% and Could Be a Screaming Buy

Key Points SoundHound AI’s revenue jumped 45% year over year in the second quarter. The LivePerson deal expands SoundHound’s customer reach to 25 Fortune 100 companies. Despite SoundHound’s 71% stock decline, its cash burn and execution remain important risks. 10 stocks we like better than SoundHound AI › SoundHound AI (NASDAQ: SOUN) develops voice and conversational AI technology for businesses. The company's shares have tanked nearly 71% from their $22.17 intraday high from October 2025 (closing price as of Sept. 9). Image source: Getty Images. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Yet SoundHound AI's business has held up far better than its stock price, creating a gap that makes the shares worth a closer look. Growth is strong, but acquisitions are also helping SoundHound AI's revenue was up 45% year over year to $61.9 million in the second quarter. Adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) loss also improved 33% year over year to $9.6 million. The company exited Q2 with $203 million in cash and no debt. Management expects fiscal 2026 revenue to fall in the range of $230 million to $260 million. The growth is encouraging, but investors should look past the financial numbers. SoundHound's revenue growth was not entirely organic. The company's service subscription revenue increased 47% year over year to $47 million in the second quarter, mainly due to revenue from acquisitions. The company also used nearly $60 million of cash in operating activities during the first half of fiscal 2026. Hence, SoundHound AI is growing rapidly, but acquisitions and continued cash burn make the underlying growth story less impressive than the headline numbers suggest. LivePerson acquisition catalyst SoundHound AI completed its acquisition of LivePerson on Sept. 4, significantly expanding its enterprise reach. The combined company now serves 25 of the Fortune 100 companies. Management expects revenue of at least $350 million and up to $400 million in 2027. SoundHound also sees an opportunity to eventually reach $500 million in annual revenue by leveraging the combined company's existing customer base. LivePerson's revenue fell 12% year over year in the second quarter, partly due to customer cancellations and downsells. SoundHound AI must therefore successfully cross-sell its AI products into the expanded customer base while improving cash flow. At today's lower price, the stock looks attractive but still speculative. Stronger organic growth and lower cash burn could make the 71% decline look excessive. Should you buy stock in SoundHound AI right now? Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294 !* Now, it’s worth noting Stock Advisor’s total average return is 950 % — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 12, 2026. Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy .

SoundHound AI’s revenue jumped 45% year over year in the second quarter.

The LivePerson deal expands SoundHound’s customer reach to 25 Fortune 100 companies.

Despite SoundHound’s 71% stock decline, its cash burn and execution remain important risks.

SoundHound AI (NASDAQ: SOUN) develops voice and conversational AI technology for businesses. The company's shares have tanked nearly 71% from their $22.17 intraday high from October 2025 (closing price as of Sept. 9).

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Yet SoundHound AI's business has held up far better than its stock price, creating a gap that makes the shares worth a closer look.

SoundHound AI's revenue was up 45% year over year to $61.9 million in the second quarter. Adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) loss also improved 33% year over year to $9.6 million. The company exited Q2 with $203 million in cash and no debt. Management expects fiscal 2026 revenue to fall in the range of $230 million to $260 million.