AI Stock Could Squeeze Shorts After Earnings Home Run

Core Insights - SoundHound AI Inc (NASDAQ:SOUN) stock has increased by 25.4%, trading at $13.45, following a narrower-than-expected adjusted second-quarter loss of 3 cents per share compared to the anticipated 5 cents loss [1] - The company's revenue exceeded estimates, and the fiscal year revenue outlook has been raised, primarily due to the performance of its Vision AI platform [1] - Despite the recent gains, the stock is still down 32.5% in 2025 and significantly below its record high of $24.98 from December 26 [2] Stock Performance - The current session marks SOUN's best single-session gain of 2025, with shares approaching their highest close since February 14 [2] - Analyst sentiment remains cautious, with most maintaining "hold" ratings and a consensus 12-month price target of $12.56, which represents a 6% discount to the current price [2] Short Interest and Trading Activity - A short squeeze may support the stock's upward momentum, as 121.82 million shares sold short account for nearly one-third of the total available float [4] - Call options trading has surged, with over 410,000 calls traded, which is eight times the average intraday volume, indicating strong bullish sentiment [5]