SoundHound AI Stock: Volatility Amidst Growth and Valuation Concerns

SoundHound AI Stock: Overvaluation And Mixed Technicals Make Stock A Sell (NASDAQ:SOUN)

Investors should be cautious as the current P/S ratio is detached from revenue growth and significantly above the sector median, indicating overvaluation. Thesis SoundHound AI, Inc. (NASDAQ:SOUN) stock has corrected over 30% since its late December high but is still up over 200% in the past six months. In the below analysis, I find that the current technicals are quite neutral. The chart shows I'm a technically-oriented Canadian investor with a focus on U.S. markets, particularly in tech and financials. I graduated with a Bachelor of Commerce Degree with Distinction, with a major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honour Society.My motto is John Pierpont Morgan's phrase: 'First-Class Business In A First-Class Way.' I strive to be a premier provider of technical analysis articles on Seeking Alpha by sharing high-quality in-depth pieces with our community of readers.My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success.Lastly, I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and best wishes on your investing journeys. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Down Nearly 50% From Its High, Is SoundHound AI Stock a Good Buy Right Now? | The Motley Fool

Investing in artificial intelligence (AI) stocks can sometimes put investors on some wild rides. A great example of that is the highly volatile SoundHound AI (SOUN -3.42%). The voice AI company surged an incredible 836% in 2024 after investors learned chipmaker Nvidia was an investor in the business. The beginning of 2025, however, has been a much different story. As of Jan. 20, the stock has fallen more than 31% out of the gate. Whether investors are cashing out their profits from last year or are simply having second thoughts about the stock and its valuation is the big question right now. At the time of this writing, shares of SoundHound AI are trading nearly 50% down from their 52-week high of $24.98. Is this a huge buying opportunity for investors, or could this be the start of a much larger sell-off? Steep and significant swings in value are nothing new for SoundHound AI investors. In the past year, its 30-day average trading volume has fluctuated in a wide range of less than 8 million to nearly 112 million. The wildly volatile stock is also massively expensive, trading at more than 60 times its trailing revenue and 17 times its book value. This can often happen with highly speculative stocks where hype, rather than fundamentals, is fueling its performance. For potential investors, it also means that they will need to brace for significant and unexpected changes in value, and that can make it an unpredictable stock to own -- one that may not be suitable for risk-averse investors. While SoundHound has been generating some strong revenue growth, the business still has a long way to go in proving that it's worth the massive premium it's trading at right now. Investors are likely excited with the growth opportunities SoundHound AI possesses in the long run. Its voice AI system can be used in cars, drive-thrus, and many industries to help create a conversational experience between users and AI, while adding efficiency for businesses. But there are many risks facing the business today. There's a lot of competition in voice AI and without strong fundamentals and resources to tap into, SoundHound may have trouble winning market share in the long run. In its most recent period, which ended on Sept. 30, 2024, the AI company grew its sales by 89% to $25.1 million but it incurred an operating loss totaling $33.8 million, which was more than twice the size of the $14.5 million loss it posted a year earlier. And over the past nine months, it has burned through $75.8 million just from its day-to-day operating activities. For a company that reported just $135.6 million in cash and cash equivalents as of the end of the period, that's not a strong position to be in. SoundHound is likely going to need to spend heavily on sales and marketing to grow its operations in what may be a highly competitive voice AI market. And that can make it even more difficult for the business to turn a profit. The stock's early decline may seem like an opportunity for investors to buy shares of SoundHound on the dip, but that can be a dangerous move to make as the stock could fall even more due to its inflated valuation; this recent drop in price merely gives back the gains the stock achieved in December. SoundHound is a volatile stock to own and with it falling so rapidly in just a few weeks, investors should pay attention to just how dangerous of an investment this can prove to be. It can be incredibly vulnerable to any bad news related not just to its own performance, but also the overall sentiment in the markets. SoundHound's fundamentals aren't strong and until they improve drastically, investors are taking a big risk with the stock. For now, you may be better off avoiding it.

Is SoundHound AI Stock a Buy Now? | The Motley Fool

After a remarkable 2024 in which SoundHound AI (SOUN -3.42%) stock surged in price by a stunning 836%, the new year has got off to a disastrous start as the voice artificial intelligence (AI) solutions provider has already lost more than 17% of its value as of this writing and was down as much as 36% earlier in the month. What's somewhat puzzling about the drop is that there has been no company-specific news that could have caused this sharp pullback in SoundHound stock. So, investors looking to add an AI stock to their portfolios may be wondering if it is a good idea to buy this sharp dip in SoundHound's shares, considering the impressive pace at which the company has been growing. Let's find out if SoundHound stock is indeed worth buying following a terrible start to 2025. SoundHound stock's rapid rise in the past year has sent its valuation to outlandish levels. The company isn't profitable yet, which is why we will check out its price-to-sales ratio to understand how expensive it has become. SoundHound ended 2024 with a sales multiple of 90. The stock's sharp decline this year has brought its sales multiple down to 74. While that's substantially lower than the price-to-sales ratio at which SoundHound was trading last year, it still remains extremely expensive. For example, the S&P 500 index sports a sales multiple of 3.1, while the U.S. technology sector has a price-to-sales ratio of 8.1. Of course, SoundHound is growing at a remarkable rate right now, so bulls may argue that it may be able to justify its valuation. The company's revenue guidance of $83.5 million for 2024 points toward a potential jump of 82% from 2023, when SoundHound's top-line growth was 47%. Even better, the midpoint of SoundHound's 2025 revenue guidance stands at $165 million, which would be nearly double the growth it is projecting in 2024. But then, investors would do well to note that they can buy AI bellwether Nvidia, which is a much bigger company and is growing at a faster pace than SoundHound, at a much lower sales multiple of 30. What's more, Nvidia's forward earnings multiple of 32 makes the stock a better buy, considering its dominant position in the AI chip market, where it has immense pricing power that's leading to terrific earnings growth. There's no doubt that the market in which SoundHound is operating is currently in a nascent stage. According to market research provider Market.us, the market for voice AI agents was worth an estimated $2.4 billion in 2024. That number is expected to increase at a compound annual growth rate (CAGR) of nearly 35% through 2034, generating an annual revenue of $47.5 billion at the end of the forecast period. So, SoundHound AI has a lot of room for growth in the long run. But justifying its current valuation may be difficult even if it manages to grow at a faster pace than the market it serves. Let's see why. We have seen that SoundHound management expects the company's 2025 revenue to land at $165 million. Assuming that the company's top line increases at a CAGR of even 40% through 2034, which is slightly higher than the pace at which its end market is expected to grow, SoundHound's annual revenue could hit just over $2 billion. Given that SoundHound's growth could slow down over the next decade as it becomes a more mature company, the market is likely to put a much smaller premium on its valuation than it is right now. If we assume that SoundHound is trading at 8 times sales after a decade, in line with the U.S. technology sector's average, its market cap could jump to $16 billion (based on 2034's estimated revenue of $2 billion). That would be a 220% jump from current levels. While that might seem like a big deal at first, investors should note that the projected market cap after a decade indicates that SoundHound's stock could deliver annual gains of 12% during this period. Buying SoundHound stock at its currently expensive valuation for such gains doesn't look like a lucrative bet when we consider that the Nasdaq-100 Technology Sector index has clocked faster growth over the past decade. Additionally, SoundHound's one-year price target of $12.36, according to Yahoo! Finance, is lower than its current stock price. This suggests analysts covering SoundHound believe that the stock may have gotten ahead of itself following its red-hot rally in 2024. And finally, SoundHound's recent drop hasn't made it attractive enough to buy it, which is why investors would do well to look at other AI stocks right now that are trading at much more attractive levels and are on track to take advantage of huge addressable opportunities.

Why SoundHound Stock Plummeted Today | The Motley Fool

Shares of SoundHound AI (SOUN -11.17%) tumbled Monday. The stock lost 11.2% as of 4:30 p.m. ET, but was down as much as 12.9% earlier in the day. The slip comes as the S&P 500 and Nasdaq composite lost 1.5% and 3.1%, respectively. SoundHound's stock has struggled since its presentation at CES 2025, down nearly 30% since the event kicked off in early January. Today was especially rough, however, as the market digested news of the disruptive Chinese artificial intelligence (AI) entry, DeepSeek. CES is a big event in the world of tech and investors pay close attention to what comes out of it. The company's presentation was much anticipated, but unfortunately the demo of its in-car voice "commerce" platform disappointed. The platform appeared to provide marginal value while increasing costs and power consumption. Some investors were understandably underwhelmed. Since the event, SoundHound's stock has struggled. The underwhelming CES performance meant that SoundHound's stock was especially susceptible to the DeepSeek news affecting the whole market. DeepSeek, created by a firm out of China, is a new entrant in the AI arms race. Despite lacking the hardware and funding its U.S. counterparts enjoy, DeepSeek's team was able to create an AI model that rivals those made by OpenAI and Amazon. Investors are worried that demand for U.S. hardware could weaken and that U.S. technology would be leapfrogged. SoundHound and other AI stocks saw a sharp decline amid the fear.

SoundHound AI surges 21%: Is this the AI stock everyone's missing?

SoundHound AI, Inc. ($SOUN) shares surged 21.11% on January 21, 2025, closing at $16.52, with pre-market trading pushing the price up by another 1.82% to $16.82. This sharp rise comes as the company announced a groundbreaking partnership with Rekor Systems to revolutionize emergency vehicle technology through audio-visual AI integration, showcasing the growing potential of SoundHound's voice AI solutions. SoundHound jumps 21% on Rekor partnership to transform emergency tech The collaboration with Rekor aims to bring hands-free, voice-enabled management of critical systems in police vehicles, using SoundHound's advanced conversational AI. By integrating Rekor Scout's® vehicle recognition software, the solution enhances operational efficiency and safety for law enforcement by enabling seamless control of ALPR systems, sirens, and in-car tools. Rekor's advanced recognition software already functions in over 90 countries, further cementing this partnership's potential global impact. Investors reacted positively, considering the expansion of SoundHound's customer base into new, high-demand sectors such as public safety and emergency response. Why SoundHound AI stock is breaking records SoundHound's meteoric rise last year, climbing 836%, highlights its growth trajectory in the voice AI market, despite recent pullbacks. CEO Keyvan Mohajer emphasized the transformative potential of the Rekor partnership, signaling continued innovation. The company is leveraging its diversified revenue streams across industries, including automotive and hospitality, while targeting a $140 billion addressable market for voice AI. For investors, SoundHound's recent rally underscores its innovative potential in a burgeoning market. However, its lack of profitability and competition from tech giants remain critical challenges. If the Rekor partnership successfully expands SoundHound's applications and revenue, the stock could sustain its upward momentum. Long-term investors should watch for progress in profitability and adoption across diversified sectors to gauge the company's resilience. Securing a major partner in a specialized field often drives speculative enthusiasm. The market tends to respond strongly to announcements that hint at broadening use cases, especially in sectors like public safety where high-stakes applications signal significant revenue potential. Landing deals that pair advanced audio AI with critical infrastructure attracts immediate attention. Investors are quick to price in future market dominance, fueling rapid share price movements before actual results materialize. Early-stage AI ventures frequently see dramatic swings tied to milestone events. A single contract or partnership can trigger a surge, mirroring past patterns where lofty expectations lift valuations, only to face correction if execution lags. Similar breakthroughs in voice-enabled technology historically prompted short-term spikes. Companies riding initial success often discovered that sustaining growth required continuous innovation and partnership expansion. Competition from established tech giants intensifies both hype and risk. Market leaders with extensive resources can overshadow smaller players, causing volatility when investors question whether a newcomer's edge will hold. Converting buzz into profitability remains a crucial hurdle. While promising collaborations generate optimism, actual earnings growth and scaled adoption ultimately determine long-term stability and share price resilience.

Where Will SoundHound AI Be in 3 Years? | The Motley Fool

SoundHound AI (SOUN 21.11%) is one of the more popular ways to invest in AI. Because it's a pure play on AI technology, it stands to benefit more from a general technological shift to AI than some of the more established big tech players. But AI isn't just a trend that'll be over in a year or two. It will play out over multiple years, so investors need to consider what a company may be doing a few years down the road to be successful in this space. So, where will SoundHound AI be three years from now? Let's take a look. SoundHound AI's product line uses audio inputs for AI models. While most generative AI models rely on text prompts, SoundHound focuses on speech. This massive field could make SoundHound AI an even bigger winner if it becomes the top software for this space. Using speech for input into AI models is nothing new, as platforms like Siri and Alexa have been doing it for some time, but often with extremely frustrating results for the end user. These devices often make significant errors and don't get used as often as they could be. SoundHound AI is different. Its platform has fantastic recognition, and in one instance, when it was used to automate drive-thru ordering, it outperformed human counterparts. This is just one application. SoundHound's product has also started to be integrated into other industries, such as automotive, healthcare, insurance, and banking. As AI agents (another huge investing theme in 2025) become more prevalent, SoundHound's software that allows speech inputs will also. But how will that affect the stock three years from now? For the short term (2025), management gave guidance that its revenue would be between $155 million and $175 million. Considering that it expects between $82 million and $85 million in revenue for 2024, that indicates that revenue will essentially double. However, SoundHound will need its revenue to increase beyond that strong projection to justify its stock price. SoundHound AI isn't a profitable company right now, but that's because it's focusing on capturing market share. From a price-to-sales (P/S) perspective, SoundHound's stock trades at lofty levels, although it has come down from its previous highs. A multiple of 62 times sales is expensive, no matter how you spin the story for the stock. But I think this level can be justified. The potential for growth with SoundHound is massive, so looking solely at the trailing metrics is a mistake. We know that SoundHound's revenue is projected to double in 2025, but what about beyond that? One metric SoundHound uses is net bookings, which measure the remaining contract value for deals it has already signed. This isn't a perfect metric, as customers can cancel or push out spending. Still, it's the best one we have for understanding SoundHound's growth trajectory. Management stated that its backlog stretches out for around six years and currently sits above $1 billion. However, the six-year mark isn't a fair assessment either, as few companies plan out that far. Any revenue in year five or six of that metric is likely just the duration of a base contract, not new business. In all reality, most of the bookings (assuming no huge cancellations) will probably come to fruition over the next three to four years. That indicates that SoundHound could easily start producing revenue of $300 million annually three years later. If it did that, the stock would be valued at 16.8 times sales -- a typical software company valuation. But for that to happen, it means that SoundHound's stock would have to stay the same price for three years, which isn't an exciting prospect for investors. However, if SoundHound is growing its revenue rapidly, the valuation would be unlikely to tumble that much, so this isn't a perfect analysis. So, where will SoundHound AI be in three years? It's hard to say. I could easily see the stock doubling from here if its revenue growth continues to double at a year-over-year pace. However, if this growth starts to slow after it has secured a large portion of its market opportunity, the stock may stay flat. There's increased risk with SoundHound AI stock, so anyone interested in the stock should keep their position sizing small. That way, it won't have a massive effect on a portfolio if it fails. If it succeeds, SoundHound AI could still make investors a lot of money, but I'd rather invest in more surefire AI stock picks.

Why SoundHound AI Stock Jumped by 18.7% This Week | The Motley Fool

Shares of conversational artificial intelligence (AI) company SoundHound AI (SOUN 6.77%) had jumped by 18.7% this week as of early Friday, according to data from S&P Global Market Intelligence, as investors reacted to two pieces of news. The first was SoundHound's announcement that it's partnering with Rekor Systems to bring a voice command and data-sharing system to emergency vehicles. The second came from President Trump, who revoked an executive order signed by former President Biden that had required companies developing artificial intelligence systems to conduct safety tests of their AIs and share the results with the U.S. government. The new partnership with Rekor will put SoundHound's conversational AI first into police vehicles, and then eventually into fire trucks and ambulances as well. The company said in a press release that officers will use SoundHound's voice commands to manage their vehicle's automatic license plate recognition (ALPR) system, two-way radios, PA systems, and other controls. SoundHound is already a leader in voice-activated vehicle controls, providing conversational AI features for Honda, Stellantis, Hyundai, and other automakers. In 2023, 90% of the company's revenue came from its automotive customers, though the company has significantly diversified its revenue streams since then across the restaurant, financial services, healthcare, and insurance industries. The new Rekor partnership shows that even as SoundHound expands into new markets, it remains a leading player in in-vehicle voice technology. In addition to the Rekor announcement, SoundHound investors were also excited to see Trump rolling back some requirements on artificial intelligence companies this week. One of the key elements of Biden's 2023 executive order on AI required that tech companies building powerful AI models conduct safety tests and share some details about their inner workings with the U.S. government before those models were made available to the public. Those companies no longer need to follow that process. It's important to clarify that Biden's executive order probably didn't affect SoundHound's ability to run its business. Instead, the current administration is showing an openness to AI advancements with less regulation, which boosted SoundHound's stock. SoundHound has become a top AI stock recently, as its share price soared by 777% over the past 12 months. While the company is clearly a leader in conversational AI, its recent gains have given the stock a price-to-sales ratio of 74, which is a hefty premium.

Could Buying SoundHound AI Stock Today Set You Up for Life? | The Motley Fool

When investors think about high-flying artificial intelligence (AI) stocks, Nvidia or Palantir Technologies probably come immediately to mind. While both of those AI stocks indeed delivered huge returns in 2024, they lagged well behind an even bigger winner. Soundhound AI's (SOUN 21.11%) share price skyrocketed 836% higher last year. However, the stock has pulled back more than 40% from its high with Soundhound's market cap hovering around $5 billion. Could buying Soundhound AI stock today set you up for life? While Nvidia is practically a household name now and Palantir has garnered significant publicity, many investors might not know much about Soundhound AI. The company was founded in 2005 with a goal to enable people to "talk to technology just as they do to each other." Two decades later, Soundhound AI is fulfilling that goal. The company's voice AI technology is used by organizations in multiple industries, including automotive, hospitality, and restaurants. Soundhound's customer base features a "who's who" in those industries. For example, automotive companies using Soundhound's technology include Hyundai, Kia, and Stellantis' brands Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, Opel, Peugeot, and Ram. Restaurants using Soundhound's products include Applebee's, Chipotle Mexican Grill, Five Guys, and Jersey Mike's. The company has won 155 patents for its technology and has 115 patents pending. This intellectual property protection spans areas including machine learning, natural language understanding, and speech recognition. Soundhound AI's revenue has increased by a compound annual growth rate of 51% since 2020. Its momentum is accelerating. In the third quarter of 2024, the company's revenue soared 89% year over year to $25.1 million. Importantly, Soundhound continues to diversify its customer base. In Q3 of 2023, over 90% of its revenue stemmed from the automotive sector with 72% from one customer. Today, six sectors each contribute revenue of between 5% and 25% with the largest customer making up only 12% of total revenue. Soundhound's success so far could be just the tip of the iceberg. The company estimates a total addressable market of at least $140 billion. This addressable market could grow even larger over the next few years. Juniper Research projects the market for voice AI will top $160 billion by 2026. The explosion of Internet of Things (IoT) devices could create an especially big opportunity for Soundhound AI. An estimated 75.4 billion IoT devices will be connected globally this year. Soundhound believes these many of these devices are ideally suited to benefit from its voice AI technology. With Soundhound AI's impressive growth story and massive market opportunity, could buying the stock set you up for life? I think the answer is a definite maybe. Soundhound faces a major risk that competitors could develop superior voice AI technology. The company doesn't have as much money as some of its deep-pocketed rivals, notably including Apple, Google parent Alphabet, Microsoft, and OpenAI. Profitability remains elusive for Soundhound. It posted a net loss of nearly $21.8 million in Q3 of 2024. However, the company expects to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of this year. On the other hand, Soundhound AI is gaining traction in the marketplace. Its impressive list of customers continues to grow. If the company can continue to out-innovate current and potential rivals, it should be much bigger by the end of the decade. Investing in Soundhound AI stock today may not set you up for life, but it possibly could.

Why SoundHound AI Stock Is Soaring Today | The Motley Fool

SoundHound AI (SOUN 15.40%) stock is surging higher in Tuesday's trading thanks to a duo of catalysts. The conversational artificial intelligence (AI) specialist's share price was up 11.7% at 1:10 p.m. ET and had been up as much as 16.5% earlier in the daily session. SoundHound AI published a press release today announcing that it had formed a partnership with Rekor Systems to bring new services to police and emergency vehicles. In addition to the business-specific catalyst, the stock is also getting a boost from President Trump's cancellation of Biden-era requirements for AI research and development. SoundHound AI is teaming up with Rekor to combine conversational AI software with Rekor's automated license plate recognition (ALPR) systems. The combination will bring a hands-free interface system to the ALPR tech and provide police officers with auditory notifications. SoundHound's tech will make it possible for officers to search databases, report incident details, and log reports. The software will initially be integrated into police vehicles, then other emergency vehicles, including fire trucks and ambulances. Artificial intelligence stocks are getting a boost today thanks to shifts in policy under the new Trump administration, and SoundHound AI is among those participating in the rally. With its return to the White House yesterday, President Trump rescinded an executive order on AI technologies issued under the Biden administration. Biden's now-vacated executive order required AI software creators to share safety test results with the government if they indicated threats to national security, the economy, or other areas of public life. Trump's move to rescind the order is in line with expectations that his administration will reduce regulations in an effort to spur domestic advancement for artificial intelligence and other emerging technologies. While it's not clear whether the removal of the order will have any material impact on SoundHound AI's business, it does signal that AI investors may now have fewer risks to worry about on the regulatory front.

Will SoundHound AI Stock Get A Boost From Project Stargate? - SoundHound AI (NASDAQ:SOUN)

SoundHound Chat AI and the company's other voice AI solutions could benefit as industries adopt AI technologies. SoundHound AI, Inc. SOUN shares soared on Tuesday as AI-related stocks got a boost after President Donald Trump announced Project Stargate, a massive $500 billion AI infrastructure investment initiative featuring Oracle Corp. ORCL, OpenAI, Nvidia and SoftBank Capital. What To Know: Project Stargate and its backers have committed $100 billion for immediate investment, with up to $400 billion in additional investments expected to take place over the next four years. Larry Ellison, CEO of Oracle, said that 20 data centers are planned under Project Stargate with the first currently under construction in Texas. Read Next: Trump Reverses Biden's AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet The stocks of Nvidia Corp. NVDA, Arm Holdings Plc ARM and other AI names rose following the Project Stargate announcement. SoundHound AI stock gained more than 21% Tuesday, though shares are pulling back slightly on Wednesday. The three most-recent analyst ratings have an average price target of $20, implying a 24% potential upside for the stock. SoundHound Chat AI and the company's other voice AI solutions could benefit as industries adopt AI technologies. Project Stargate may accelerate the development and adoption of artificial intelligence as data centers are built to support intense computational demands of AI workloads. What Else: SoundHound on Tuesday also announced a partnership with Rekor Systems, Inc. REKR to integrate SoundHound's voice AI with Rekor's vehicle recognition software to enhance emergency vehicle technology to deliver real-time, voice-enabled alerts for wanted vehicles, Amber Alerts and other high-priority notifications. SOUN Price Action: According to data from Benzinga Pro, SoundHound AI shares are down 3.39% at $15.96 at the time of publication Wednesday. Read Next: Roku Analyst Sees 25% Upside As TV Ad Dollars Go Digital Image: Shutterstock SOUNSoundHound AI Inc$16.39-0.82%WatchlistOverviewARMARM Holdings PLC$178.7315.2%NVDANVIDIA Corp$146.784.23%ORCLOracle Corp$185.007.20%REKRRekor Systems Inc$2.1033.8%Market News and Data brought to you by Benzinga APIs

Soundhound AI Shares Are On The Rise Today: What's Going On? - SoundHound AI (NASDAQ:SOUN)

The technology will provide voice-enabled alerts and integrate with existing vehicle systems. Shares of SoundHound AI, Inc. SOUN are trading higher Tuesday following the announcement of a collaboration with Rekor Systems, Inc. REKR. What To know: The partnership between SoundHound AI and Rekor Systems will integrate SoundHound's voice AI with Rekor's vehicle recognition software, Rekor Scout, to enhance emergency vehicle technology. The goal is to create hands-free solutions for law enforcement and first responders, enabling the use of systems like automatic license plate recognition (ALPR), sirens and in-car data terminals via voice commands. The technology will deliver real-time, voice-enabled alerts for wanted vehicles, Amber Alerts and other high-priority notifications, improving situational awareness by replacing traditional audio cues with natural language. Initially focused on police vehicles, the solution will expand to fire trucks and ambulances. It will integrate with Mobile Data Terminals (MDTs) to allow officers to query databases, log incidents and perform tasks hands-free. Rekor Scout will also utilize existing high-resolution cameras in emergency vehicles, removing the need for additional hardware. SoundHound CEO Keyvan Mohajer called the collaboration transformative, citing its potential to enhance safety and reduce distractions for law enforcement. Rekor leadership potentially emphasized its global relevance and role in modernizing policing technology. SOUN Price Action: Soundhound shares were up 15.4% at $15.74 at the time of writing, according to Benzinga pro. Read Next: BrightSpring Health Divests Community Living Business For $850 Million To Focus On Core Activities Image Via Shutterstock. SOUNSoundHound AI Inc$15.7315.3%WatchlistOverviewREKRRekor Systems Inc$1.57-1.56%Market News and Data brought to you by Benzinga APIs

SoundHound shares leap on Rekor Systems partnership By Investing.com

The collaboration will integrate SoundHound's voice and conversational AI with Rekor's vehicle recognition software, Rekor Scout®, to enhance the functionality of law enforcement and first responder vehicles. This technology aims to provide hands-free operation of systems such as automatic license plate recognition (ALPR) and other critical vehicle systems, potentially improving safety and operational efficiency. The press release detailed the use of voice AI to manage various systems within police vehicles, including emergency light bars and sirens, through voice commands. The goal is to reduce distractions and increase safety during high-pressure situations. The partnership also plans to extend this advanced audio-visual AI technology to other emergency vehicles. Rekor's President and CEO, David Desharnais, emphasized the importance of the Rekor Scout® integration, noting its advanced vehicle recognition capabilities and the significant enhancement it brings to law enforcement efficiency and safety. SoundHound's CEO, Keyvan Mohajer, commented on the transformative potential of the partnership, expressing that this innovation will empower officers with a hands-free solution that supports responsiveness in the field. Robert A. Berman, Rekor's Chairman of the Board, also praised SoundHound's journey to becoming a leader in voice AI technology. The market response to the announcement has been positive, reflecting investor optimism about the potential impact of this partnership on SoundHound's business and the broader public safety technology market. Despite a 31% decline since the beginning of the year, SoundHound shares have experienced a significant rise of 745% over the last 12 months.