The beginning of 2025, however, has been a much different story. As of Jan. 20, the stock has fallen more than 31% out of the gate. Whether investors are cashing out their profits from last year or are simply having second thoughts about the stock and its valuation is the big question right now.

Shares of conversational artificial intelligence (AI) company SoundHound AI (NASDAQ: SOUN) had jumped by 18.7% this week as of early Friday, according to data from S&P Global Market Intelligence, as investors reacted to two pieces of news.

After a remarkable 2024 in which SoundHound AI (NASDAQ: SOUN) stock surged in price by a stunning 836%, the new year has got off to a disastrous start as the voice artificial intelligence (AI) solutions provider has already lost more than 17% of its value as of this writing and was down as much as 36% earlier in the month.

SoundHound AI (NASDAQ: SOUN) is one of the more popular ways to invest in AI. Because it's a pure play on AI technology, it stands to benefit more from a general technological shift to AI than some of the more established big tech players.

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) has been given a consensus recommendation of “Moderate Buy” by the seven ratings firms that are currently covering the company, Marketbeat.com reports.

Ameritas Advisory Services LLC lessened its stake in SoundHound AI, Inc. (NASDAQ:SOUN – Free Report) by 10.2% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 12,

Soundhound AI 's ( SOUN 21.11%) share price skyrocketed 836% higher last year. However, the stock has pulled back more than 40% from its high with Soundhound's market cap hovering around $5 billion. Could buying Soundhound AI stock today set you up for life?

SoundHound AI Inc (SOUN) stock saw a modest uptick, ending the day at $16.4 which represents a slight increase of $0.02 or 0.12% from the prior close of $16.38. The stock opened at $16.05 and touched a low of $15.

SoundHound AI (NASDAQ: SOUN) saw its stock price jump by 21% on January 21, following the announcement of a partnership with Rekor Systems (NASDAQ: REKR).

We warn of overvaluation and declining stock in SoundHound due to AI hype and recent acquisition and advise to lock in gains. Read more on SOUN stock here.

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SoundHound saw its shares climb 836% in 2024 while Palo Alto returned a more pedestrian 23%. But Wall Street only expects one to repeat its performance while the other could be in for a down year.