Key Highlights

  • SoundHound AI (SOUN) has 39.6% of its float sold short, with 7.0 days to cover.
  • The company launched OASYS Edge, bringing LLM-powered voice agents to vehicles and devices at the edge, on Sept. 24.
  • SOUN trades near its 52-week low; its 52-week range is $5.65 to $22.17.

SoundHound AI (NASDAQ:SOUN) rose 0.8% to $6.15 in pre-market trading after launching OASYS Edge, which brings large-language-model voice agents to cars and smart devices without the cloud. With 39.6% of its float sold short, SoundHound is one of the most heavily shorted AI stocks on the market, and it trades near its 52-week low after a steep slide.

SoundHound AI's short interest sits near 40 percent of the float, among the most crowded shorts in the market. Short interest is the share of tradable stock that bears have borrowed and sold. At 40%, SoundHound is among the most crowded shorts in the market, so good news can trigger a rush of short covering.

OASYS Edge lets carmakers and device makers run advanced voice assistants directly on the hardware, cutting latency and cloud costs, a growing trend in "edge AI." SoundHound also closed its Acquisition of LivePerson on Sept. 4, expanding into customer-service AI. On the bearish side, Piper Sandler cut its target to $6 on Sept. 21, and the CEO sold about $868,000 of stock on Sept. 20.

SoundHound AI (SOUN) Trades Near Lows

Volume was below average, and the stock sits in the lower portion of its 52-week range after falling about two-thirds from its high. The market Capitalization is about $2.7 billion. Customer-experience software peers were soft: Five9 fell 1.2%, Braze 0.5% and AvePoint was little changed.

SOUN Technical Levels

SOUN trades below its key moving averages, which keeps the downtrend intact. For squeeze traders, the trigger to watch is a close above recent resistance on heavy volume; with seven days to cover, shorts could be forced to chase the stock higher.

Analyst View

The consensus rating is Buy with an average target near $12.57, roughly double the current price, though targets have been falling.

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