Vanguard Just Bought More SoundHound Stock. Should You?

SoundHound AI (SOUN) soared as much as 20% on Tuesday after a regulatory filing confirmed that Vanguard has been loading up on shares of the voice-enabled artificial intelligence platform this year. 

According to the SEC filing dated July 7, Vanguard added more than 5.29 million shares of the AI-enabled speech recognition firm in the first six months of 2025. 

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Including today’s rally, SoundHound stock is up 100% versus its year-to-date low set in April. 

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SoundHound Stock Could Attract Additional Institutional Interest

Vanguard – one of the most widely revered institutional investors in the world – now owns a total of 37.32 million shares of the voice AI firm.  

Its aggressive accumulation of SOUN shares is significant as it signals conviction in the company’s long-term potential. 

Investors are cheering the news since Vanguard’s validation could attract additional institutional interest, strengthen investor confidence, and improve overall liquidity in SoundHound stock. 

SOUN has been in a sharp uptrend over the past year primarily because its voice-enabled AI technology has been gaining traction across several industries, including automotive, customer care, and enterprise software. 

That momentum even helped the company’s revenue come in a whopping 151% up on a year-over-year basis in its fiscal Q1.  

SOUN Shares Are Not Inexpensive to Own at Current Levels

Despite Vanguard’s vote of confidence and exceptional growth in SoundHound’s revenue, caution is warranted in buying this AI stock at current levels due to valuation concerns. 

SOUN stock is currently going for a price-to-sales ratio of 53x – more than double the multiple on Nvidia (NVDA). 

That’s actually why Michael Latimore – a senior Northland Securities analyst – reiterated his “Hold” rating on SoundHound AI last week, warning of a potential downside in it to $8 per share. 

How Wall Street Recommends Playing SoundHound AI in 2025

SOUN stock is now trading handily above analysts’ mean target, which further suggests today’s rally may have gone a bit too far. 

According to Barchart, the consensus rating on SoundHound shares remains at “Moderate Buy” but the average price target of $11.50 indicates potential downside of nearly 14% from here.  

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.