Why SoundHound AI Stock Skyrocketed 26% Last Month and Has Kept Soaring in September

Core Insights - SoundHound AI's stock experienced significant gains in August, rising 26% due to a strong earnings report that exceeded market expectations [1][3][4] - The company reported a non-GAAP adjusted loss of $0.03 per share on sales of $42.7 million for Q2, surpassing analyst estimates of a $0.05 loss on $32.9 million in sales [3][4] - Year-over-year sales growth for SoundHound AI was approximately 217% in Q2, although adjusted gross margin decreased to 58.4% from 66.5% [4] - Despite some valuation pullbacks post-earnings, the stock regained momentum as bullish sentiment returned [5][8] - In September, the stock continued to rise, up 14.3% so far, driven by positive tech stock momentum and expectations of Federal Reserve interest rate cuts [6] - Following strong Q2 results, SoundHound AI raised its full-year revenue outlook to between $160 million and $178 million, indicating potential annual growth of 99.5% compared to last year's $84.7 million [7]