What Happened?
Shares of voice AI technology company SoundHound AI (NASDAQ: SOUN) fell 3.3% in the morning session after Piper Sandler lowered its price target on the shares, and a broader market sell-off added to the negative pressure.
The firm reduced its price target to $11 from $15, though it maintained a Neutral rating on the stock. This move came after shares had already experienced a significant drop in the previous month, reflecting a wider market rotation away from unprofitable growth stocks. The general market weakness continued, with global shares mostly lower, which likely contributed to the decline. The sentiment was not entirely negative, as some analysts reiterated positive views on the company following demonstrations at the CES trade show. However, the price target cut and broader market downturn overshadowed any positive news.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SoundHound AI? Access our full analysis report here.
What Is The Market Telling Us
SoundHound AI’s shares are extremely volatile and have had 76 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.9% on the news that investor attention turned to the annual CES 2026 technology conference in Las Vegas, with artificial intelligence emerging as a central theme.
Attention shifted to tech giants, whose CEOs would headline the event. This focus continued the AI-fuelled momentum that drove market gains the previous year. The rally had global reach, with an MSCI Asia Pacific Index surge being driven by heavyweight chip names like Samsung and Taiwan Semiconductor Manufacturing Company. The event reinforced investor confidence in the long-term demand for the booming AI and chipmaking trend, boosting shares of companies across the semiconductor and technology space.
SoundHound AI is up 2.6% since the beginning of the year, but at $10.88 per share, it is still trading 49.2% below its 52-week high of $21.40 from October 2025. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $1,450.
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