How to Invest in SoundHound AI (SOUN)

How to buy SoundHound AI (SOUN) stock

Follow these steps to invest in stocks, whether you're buying shares of SoundHound AI or another publicly traded company.

1. Open your brokerage account: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in SoundHound AI stock?

Investing in SoundHound AI -- or AI stocks in general -- isn't right for everyone. Let's break down some scenarios where it might make sense to invest in SoundHound AI, as well as some situations where the stock doesn't belong in your portfolio.

Consider investing in SoundHound AI stock if:

• You're excited about the future of AI voice technology and believe SoundHound AI can continue to grow its revenue and market share. The company reported revenue of $71.8 million in the first two quarters of 2025, up from $25 million the prior year.
• You believe that SoundHound AI can continue to diversify its business. Focusing on a broad range of industries provides some protection against sluggish performance in a particular sector and allows SoundHound AI to broaden its reach.
• You believe that SoundHound AI could get acquired by a larger company. When a start-up gets acquired, shareholders often reap the rewards in the form of a premium buyout price.
• You have a high risk tolerance. SoundHound AI has a volatile beta of 2.79. Essentially, for every 1% movement in the overall stock market, you'd expect SoundHound AI's stock price to move by 2.79%. Given the wild swings in its stock price, it's best for those willing to accept big risks in exchange for the high upside.

Consider avoiding SoundHound AI stock if:

• You believe its competitors have an advantage. The race to develop new AI technologies is fierce, and SoundHound AI faces heavy competition from much larger companies, including Apple (AAPL -0.68%), Google parent company Alphabet (GOOG +1.46%)(GOOGL +1.21%), and Amazon (AMZN -0.87%), which have far more resources.
• You've lost confidence in the stock due to Nvidia's sell-off. Nvidia recently sold its entire $33 million stake in SoundHound AI. If you're worried the decision signals trouble ahead, it's best to steer clear.
• You're investing money that you may need in the next few years. Investing in AI stocks is inherently risky, particularly small start-ups like SoundHound AI that continue to post large losses. Make sure you're committed to investing long-term.
• You're seeking investment income. SoundHound AI is unlikely to pay a dividend in the near future, which makes it a poor choice for income investors.

Is SoundHound AI profitable?

SoundHound AI isn't yet profitable, which isn't unusual for fast-growing tech companies. In the second quarter of 2025, the company's year-over-year revenue soared from $15.5 million to $42.7 million. However, it reported a generally accepted accounting principles (GAAP) operating loss of around $78.1 million, more than three times the GAAP operating loss of $22 million the prior year.

Though growing losses may worry investors, management attributes much of the change to factors like the company's recent acquisitions and increased research & development (R&D) spending. Non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) losses, which often exclude one-time expenses for things like acquisitions, as well as stock-based compensation, were significantly lower at $14.3 million.

Does SoundHound AI pay a dividend?

SoundHound AI doesn't pay a dividend, and its Form 10-K, filed with the SEC in March 2025, says it doesn't intend to do so for the foreseeable future. That isn't surprising, considering that it's a young AI startup that's focused on growth and developing cutting-edge technologies.

Companies that pay dividends tend to be mature businesses with stable earnings; start-ups typically reinvest their excess cash into growing the business.

ETFs with exposure to SoundHound AI stock

A few smaller exchange-traded funds (ETF) include SoundHound AI stock in their holdings, including:

• VanEck Social Sentiment ETF (BUZZ +2.30%): The fund invests in 75 U.S. stocks that are deemed to have positive investor sentiment and a bullish outlook based on aggregated sources, like social media, blog posts, and news articles. The fund has net assets of $146 million, with its stake in SoundHound AI accounting for 1.99% of its holdings. The ETF's expense ratio is 0.76%, amounting to $7.60 in fees on a $1,000 investment.
• Global X Robotics & Artificial Intelligence ETF (BOTZ +1.02%): The ETF has 53 holdings and invests in companies at the forefront of developing robotics and AI technology. SoundHound AI represents about 2.18% of its holdings. The fund has about $3.2 billion in assets under management (AUM). Its expense ratio is 0.68%, which means you'd pay $6.80 in fees on a $1,000 investment.
• Vanguard Information Technology ETF (VGT +0.19%): The fund has around $128.3 billion in AUM and tracks an index of stocks that measures the performance of domestic information technology stocks. It has 314 holdings, one of which is SoundHound AI, which accounts for a minuscule 0.10% of its value. Its ETF expense ratio is 0.09%, which translates to just $0.90 in fees on a $1,000 investment.

Will SoundHound AI stock split?

SoundHound AI hasn't announced plans for a stock split, and investors shouldn't expect one anytime soon. One of the primary reasons companies split their stock is to make it appear more affordable to retail investors. This often happens when shares are trading for several hundred dollars. As of this writing, SoundHound AI stock traded for roughly $18 per share, making it easily accessible to most investors.

The bottom line on SoundHound AI stock

SoundHound AI stock could present an exciting opportunity to get in on a young and promising AI company, but investors should be prepared for high volatility. The company faces heavy competition from giants like Google and Apple in the crowded race to be at the forefront of AI. Investors should also be comfortable with the company's recent losses.

Investing in SoundHound AI could lead to big profits, but it's not suitable for money you can't afford to lose.

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