Group 1 - SoundHound AI has developed a voice AI platform supported by over 200 patents, with major clients like Honda and Oracle [1][4] - The company has experienced significant revenue growth, with sales increasing by over 370% in the past five years, and analysts expect nearly 90% growth this year and 25% in 2026 [3][6] - The demand for SoundHound's voice AI suite is driving growth, particularly in sectors such as automotive, restaurants, financial services, healthcare, and insurance [4][5] Group 2 - The AI voice market is projected to reach nearly $50 billion by 2034, with an average annual growth rate of approximately 35%, indicating substantial growth potential for SoundHound [6] - Despite a 50% decline in stock value this year, the company's shares are now trading at 37 times sales, down from 100 times sales, which may be more reasonable given the growth opportunities [8][11] - SoundHound faces competition from larger tech firms, which poses risks, especially considering its research and development budget of $80 million over the past year [10]

NEW YORK, May 19, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in SoundHound AI, Inc. ("SoundHound AI, Inc." or the "Company") (NASDAQ: SOUN) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of SoundHound AI, Inc. investors who were adversely affected by alleged securities fraud between May 10, 2024 and March 3, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/soundh ...

Group 1: AI Market Overview - The current market for high-growth AI stocks is experiencing inflated prices, prompting a cautious approach for potential investors [1][2] - A market correction is anticipated, with a focus on acquiring AI stocks at lower prices during a potential downturn [2] Group 2: Nvidia Analysis - Nvidia has transitioned from a gaming hardware specialist to a leading provider of AI accelerator equipment, significantly benefiting from the AI boom [3][4] - The company's stock price surged over 800% since the onset of the ChatGPT era, with annual revenues quadrupling and free cash flows increasing by 1,380% [4] - Despite a recent 10% drop from all-time highs, Nvidia's stock remains highly valued, trading at 25 times trailing sales and 54 times free cash flows [5][7] - Competition from Advanced Micro Devices (AMD) and major AI service providers like Alphabet and Amazon poses a threat to Nvidia's market dominance [8][9] - A price correction of 20% to 30% is suggested as a more favorable entry point for Nvidia stock [10] Group 3: SoundHound AI Analysis - SoundHound AI is currently unprofitable and trades at 44 times sales, indicating a high valuation compared to its peers [11] - The company reported a 151% revenue increase year-over-year, with expectations to reach approximately $167 million in sales for 2025 [12] - SoundHound AI has established partnerships with notable clients, including Stellantis and Chipotle, and is expanding its voice-driven services globally [13][14] - Despite its potential, the stock price reflects significant risks, especially with competition from larger tech companies [15] - The stock has decreased by 20% since January but remains above the target price of $7, indicating a cautious stance on further investments until a more favorable price is reached [16]

Industry Overview - The AI industry presents significant growth opportunities, with the overall market expected to grow at an annualized rate of nearly 20% through 2034 according to Precedence Research [1][2]. Company Analysis Arm Holdings - Arm Holdings is a semiconductor design company that licenses chip designs to other manufacturers, generating approximately $4 billion in high-margin revenue annually [6]. - The company is well-positioned in the AI sector due to its power-efficient chip designs, which are crucial as AI technology becomes more mainstream and power-hungry [8][9]. - Arm's revenue is projected to grow around 20% per year over the next three years despite macroeconomic uncertainties [9]. SoundHound AI - SoundHound AI specializes in advanced voice communication technology, having developed its proprietary AI platform, Houndify, since 2015 [12]. - The company is positioned to capture significant growth in the voice-based AI market, which is expected to expand at an annualized rate of nearly 35% through 2034 [14]. - SoundHound's first-quarter revenue increased by 151% year-over-year, showcasing its strong growth trajectory [15]. BigBear.ai - BigBear.ai focuses on AI-powered decision-making software primarily for the private sector, targeting industries such as manufacturing, healthcare, and biopharma [18][19]. - The decision-making segment of the AI industry is forecasted to grow at an average annual pace of 16% through 2034 [20]. - Analysts have set a consensus price target of $6.63 for BigBear.ai, nearly double its current stock price, indicating potential upside for investors [21].

Group 1: Nvidia's Market Impact - Nvidia added $2.8 trillion to its market capitalization since the start of 2023 due to soaring demand for its data center chips for AI development [1] - Nvidia sold its entire stake in SoundHound AI toward the end of last year, as noted in its 13-F filing with the SEC [2][17] Group 2: SoundHound's Business and Technology - SoundHound specializes in conversational AI and has a strong customer base across various industries, including hospitality and automotive [2][5] - SoundHound's technology is deployed in approximately 13,000 quick-service restaurants, enabling autonomous order taking and employee assistance [6] - In the automotive sector, SoundHound's Chat AI is utilized by major brands like Hyundai and Kia, and it recently launched a Voice Commerce platform [7] Group 3: Financial Performance - SoundHound reported $29.1 million in total revenue for Q1 2025, a 151% increase year-over-year, boosted by the acquisition of Amelia [9] - The company has a growing order backlog, which was $1.2 billion three months prior, and expects to convert this backlog into revenue over six years [10] - SoundHound reaffirmed its full-year guidance for 2025, projecting a 97% year-over-year revenue increase to $167 million [11] Group 4: Valuation and Risks - SoundHound's current price-to-sales (P/S) ratio is 40.8, significantly higher than Nvidia's, raising concerns about its valuation [12] - When considering future revenue potential, SoundHound's forward P/S ratio is 27.1, still higher than Nvidia's [14] - Despite reporting a profit of $129 million in Q1, this was largely due to a one-time benefit, and on a non-GAAP basis, the company lost $22.3 million [15] - SoundHound had $246 million in cash at the end of the quarter, allowing it to sustain losses for a couple of years, but future cash needs could lead to stock dilution [16]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of SoundHound AI, Inc. regarding a class action lawsuit due to alleged misleading statements and material weaknesses in financial reporting [1][3]. Group 1: Allegations - The complaint alleges that during the class period from May 10, 2024, to March 3, 2025, SoundHound AI made materially false and misleading statements [3]. - Specific allegations include that the company had material weaknesses in internal controls over financial reporting, which impaired its ability to account for corporate acquisitions [3]. - It is claimed that SoundHound overstated its remediation efforts regarding these weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [3]. - The company is also alleged to require additional time and expense to account for the SYNQ3 and Amelia Acquisitions, increasing the risk of delayed financial report filings with the SEC [3]. Group 2: Class Action Details - The deadline for shareholders to register for the class action is May 27, 2025, and they are encouraged to register without delay [4]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [4]. - There is no cost or obligation for shareholders to participate in this case [4]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].

Core Insights - SoundHound AI Inc. (SOUN) has seen a stock price increase of 20.7% following its Q1 2025 earnings report, outperforming the broader Zacks Computer & Technology sector and the Zacks Computers - IT Services industry [1][4]. Financial Performance - SOUN reported revenues of $29.1 million for Q1 2025, a 151% year-over-year increase, although it fell short of the $30 million expected by analysts [4][5]. - The company posted an adjusted loss of 6 cents per share, which was better than the Zacks Consensus Estimate of a 7-cent loss, indicating improved operational efficiency [4][5]. - Adjusted EBITDA was a loss of $22.2 million, widening from a loss of $15.4 million, reflecting ongoing investments in growth and R&D [4][6]. - SOUN reaffirmed its 2025 revenue guidance of $157 to $177 million, suggesting a growth rate of approximately 85–109% over 2024 levels [5][6]. Margin Analysis - Despite strong revenue growth, SOUN's GAAP gross margin declined to 36.5% from 59.7%, and non-GAAP margin fell to 50.8% from 65.5%, indicating increased costs associated with acquisitions and scaling [6][14]. - R&D, Sales & Marketing, and General and Administrative costs increased significantly, driven by acquisitions and investments in talent and infrastructure [14]. Customer Base and Market Expansion - SOUN's revenue growth is attributed to its expanding customer base, with no single customer accounting for more than 10% of total revenues, indicating broader market adoption [7][10]. - The company activated over 1,000 restaurant locations in Q1, nearly ten times its pace from the previous year, and its AI now handles around 10 million interactions per quarter across 13,000 restaurants [8][10]. Strategic Partnerships - Collaborations with major players like NVIDIA, Perplexity, Lucid Group, and LG are enhancing SOUN's voice AI capabilities and market presence [9][10]. - The integration of NVIDIA AI Enterprise tools is improving response times and user interactions in automotive applications [9][10]. Acquisitions and Technological Advancements - Recent acquisitions, including SYNQ3, Amelia, and Allset, have enhanced upsell opportunities and technological breadth [12]. - The deployment of autonomous AI agents for voice-driven transactions and customer support is a significant advancement for the company [12]. Valuation and Market Outlook - SOUN shares are currently considered overvalued, with a forward 12-month price-to-sales (P/S) ratio of 25.66, higher than the industry average of 19.63 [18]. - The Zacks Consensus Estimate for SOUN's 2025 loss per share remains unchanged at 16 cents, reflecting an improvement from a year-ago loss of $1.04 per share [16][17].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of SoundHound AI, Inc. regarding a class action lawsuit due to alleged misleading statements and material weaknesses in financial reporting [1][2]. Group 1: Allegations - The complaint alleges that during the class period from May 10, 2024, to March 3, 2025, SoundHound issued materially false and misleading statements [2]. - Specific allegations include that SoundHound's internal controls over financial reporting were materially weak, impairing its ability to account for corporate acquisitions [2]. - The company overstated its remediation efforts regarding these internal control weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [2]. - SoundHound is expected to require additional time and resources to account for the SYNQ3 and Amelia Acquisitions due to these weaknesses [2]. - There is an increased risk that the company may not file certain financial reports with the SEC in a timely manner as a result of these issues [2]. Group 2: Next Steps for Shareholders - Shareholders are encouraged to register for the class action by May 27, 2025, to potentially become lead plaintiffs [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's status [3]. - Participation in the case incurs no cost or obligation for the shareholders [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [4].

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by officers and directors of SoundHound AI, Inc. related to misrepresentation of financial reporting and internal controls [1] Group 1: Allegations of Misrepresentation - Insiders at SoundHound allegedly caused the company to misrepresent or fail to disclose material weaknesses in internal controls over financial reporting [2] - The company overstated its remediation efforts regarding these material weaknesses, impacting its ability to account for corporate acquisitions [2] - SoundHound's reported goodwill following the Amelia Acquisition was inflated and would require correction due to these weaknesses [2] Group 2: Impact on Financial Reporting - SoundHound is likely to require additional time and resources to effectively account for the SYNQ3 and Amelia Acquisitions [2] - The identified weaknesses increased the risk of the company being unable to timely file certain financial reports with the SEC [2] - As a result, the company's public statements were materially false and misleading at all relevant times [2]

Group 1 - The core focus of JR Research is on identifying attractive risk/reward opportunities that can generate alpha above the S&P 500 through robust price action [1][2] - The investment strategy emphasizes growth investing, combining price action analysis with fundamental investing while avoiding overhyped and overvalued stocks [2] - JR Research runs the Ultimate Growth Investing group, which specializes in high-potential opportunities across various sectors with a 18 to 24 month outlook for investment theses [3] Group 2 - The group targets stocks with strong growth potential and contrarian plays that have been beaten down, aiming for robust fundamentals and attractive valuations [3] - The investment approach is designed for investors looking to capitalize on growth stocks with buying momentum and turnaround potential [3]