SoundHound AI Plummeted Today -- Is Now the Time to Buy the Stock?

Core Insights - SoundHound AI's stock experienced a significant decline of 8.5% in a trading session, reflecting broader market trends with the S&P 500 and Nasdaq Composite also falling [1][2] - The volatility of AI stocks, particularly those with growth-dependent valuations, was exacerbated by concerns over Nvidia's upcoming quarterly results and Microsoft's data center expansion plans [2][3] - Despite a 141% increase in share price over the past year, SoundHound AI's stock has dropped approximately 52.5% in 2025, indicating high volatility and potential for further movement in the near term [3][4] Financial Performance - SoundHound AI has a market capitalization of around $3.7 billion, trading at approximately 22.4 times this year's expected sales, indicating a growth-dependent valuation that carries downside risk [4] - The company raised its full-year sales target for 2024 to between $82 million and $85 million, suggesting a year-over-year sales growth of about 82% [5] - Revenue projections for 2025 are estimated to be between $155 million and $175 million, indicating potential for more than doubling revenue this year [5] Investment Considerations - The recent valuation pullback may present an entry point for investors with high risk tolerance and a positive outlook on SoundHound AI's expansion potential, although it may not be suitable for risk-averse investors [6]