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SoundHound Shares (NASDAQ:SOUN) Take A Dive Despite Japan Launch News

Analyst Team trader
Updated 26 Mar 2024

Shares of SoundHound (NASDAQ:SOUN) traded down 4.56% on Monday as the sentiment for the company continues to be in red territory over the last week. The last week of trading has seen SoundHound stock in the red to the tune of 25.82%. That is a staggering shift in gears considering the earlier hype that had been pushing the price to record levels just weeks before.

It is amazing to consider that SOUN still remains in the green over the last month, 1.91% to be precise, and another 1% in the premarket so far today. Over a longer duration, the YTD trend in SOUN has the stock +181%, as the hype machine around AI stocks firmly took this one to its' heart. The last week reflects a significant momentous shift from what has been seen year to date, as some analysts released less than positive coverage on SOUN here.


Other news coming out of the company in recent days has been positive.

In what was heralded by the company as a pioneering move for the automotive industry, SoundHound AI, Inc has propelled itself into the limelight with the introduction of its Chat AI Automotive voice assistant in Japan. This momentous release signified the first-ever integration of generative AI into vehicles within the Japanese market, marking a transformative phase in automotive technology and user experience.

With a global debut in April 2023, the Chat AI Automotive voice assistant has now made its way into Stellantis’ DS Automobiles, promising drivers an unprecedented level of interaction and assistance as they navigate roads and access vehicle information. DS Automobiles stands as the first car manufacturer to embrace SoundHound’s Chat AI for full production, making this advanced technology available in 13 languages across 18 countries.

Named ‘Iris' by DS Automobiles, this voice assistant transcends the conventional in-car experience by allowing drivers to engage with their vehicles hands-free to perform a variety of tasks. Users can effortlessly obtain travel routes, open and close the sunroof, keep abreast with sports news, and get parking assistance—all through the power of voice.

The integration of generative AI has polished the assistant's capabilities, enabling it to manage complex queries including navigation, weather conditions, local sightseeing attractions, and even dining suggestions. This new breed of AI significantly mitigates the risks of AI “hallucinations”—the term denoting unreliable and nonsensical responses previously associated with AI assistants.

Mike Zagorsek, the COO of SoundHound AI, perceives this launch as a landmark development in in-vehicle technologies. He attributes this innovation to forward-thinking automotive brands like DS Automobiles, which are actively sculpting the future landscape of the driving experience.

Initial results demonstrate a remarkable adoption rate of in-vehicle voice assistants featuring generative AI prowess. SoundHound AI's data reflects an over 50% surge in utilization among drivers and passengers within DS Automobiles, underscoring the increasing demand for smart vehicle experiences.

With the direction of sentiment very hard to predict at this stage, SoundHound looks likely to remain in the volatile zone in the weeks to come, one for the cautious trader to avoid. If on the other hand you are looking for a stock that has the capacity to move significantly in either direction, SOUN may be one for the list.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.