The conversational artificial intelligence (AI) company SoundHound AI Inc. (NASDAQ:SOUN) surged over 11% on Tuesday after having the second-highest volume day of 2025. With several positive technical indicators, this particular momentum signaled that the stock may be overbought.
What Happened: As the demand for AI is skyrocketing in every sector, the voice AI company SoundHound had its second-highest day of trading volume at 118,340,200 on Tuesday, July 6, with Feb. 14 being the highest at 177,289,100.
Traders remained positive on the stock as Ryan Collins, the Florida Director for StepStone Group, reaffirmed his prediction of a “break through” beyond $12.6 apiece.
The stock rose 11.69% to end at 12.71% on Tuesday. Collins also cautioned that the stock may undergo some pressure around $14 apiece.
Meanwhile, online financial commentator, Tiger Line Trading predicted a surge to $15 per share of the stock.
As per the Benzinga Pro data, SoundHound AI stock was above its short and long-term moving averages, signaling a bullish stock trend.
Its MACD line was also positive and above its signal line, suggesting a potential bullish trend, with its 12-week exponential moving average being above its 26-week EMA.
However, its relative strength index at 71.58 meant that the stock was in the overbought zone, hinting at a potential slowdown or reversal in the near term.
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Why It Matters: Fundamentally, during its first quarter earnings call, CFO Nitesh Sharan reaffirmed the company's 2025 revenue guidance of $157 to $177 million, despite a $2 million adverse impact from a customer's change of control.
He also highlighted the increasing diversification of revenue streams across verticals, including automotive, restaurants, financial services, and healthcare.
Looking ahead, SoundHound emphasized its record pipeline, fueled by increasing demand for its advanced voice AI solutions and the growing recognition of its technological differentiation.
"We have a strong pipeline of new OEMs, and they, along with the restaurants, are very excited about our voice commerce solutions," he said.
Price Action: SOUN shares were 2.28% higher at $13 apiece in premarket on Wednesday. However, it was lower by 36.95% on a year-to-date basis and up 207.00% over a year.
Benzinga Edge Stock Rankings shows that SOUN had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid at the 95.85th percentile, whereas its value ranking was poor at the 6.58th percentile; the details of all the metrics are available here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were slightly higher in premarket on Wednesday. The SPY was up 0.042% at $620.60, while the QQQ advanced 0.016% to $552.43, according to Benzinga Pro data.
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