By Simply Wall St
Publication Date: 2026-03-29 07:05:00
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NVIDIA’s decision to fully exit its position in SoundHound AI (SOUN) triggered a sharp market reaction, with the stock recently down 28% after the SEC filing, despite a series of positive operating announcements.
See our latest analysis for SoundHound AI.
At a share price of $5.90, SoundHound AI’s recent 1 month share price return of 31.4% and year to date share price return of 44.3% point to fading short term momentum, even though the 3 year total shareholder return of 113.8% still reflects a strong longer term outcome for investors willing to tolerate volatility.
If you are assessing how this volatility compares with other AI names, it can help to widen the lens and scan 34 AI small caps
With NVIDIA gone from the share register, SoundHound AI now trades at US$5.90, a fraction of the US$14.63 analyst target. This raises a key question for you: is this genuine upside, or is future growth already baked in?
Compared with the last close at $5.90, the most followed narrative on SoundHound AI points to a fair value of $28.58, a sizeable gap that rests on very specific growth and margin assumptions.
Even assuming a 15% annual dilution, a sector-conservative 20x valuation, and a high 8.53% cost of equity, Soundhound’s stock could be worth around $28.8 today.
Curious what…
