This Artificial Intelligence Stock Is Down 71% and Could Be a Screaming Buy

SoundHound AI, a developer of voice and conversational AI technology, has seen its stock price plummet 71% from its October 2025 high of $22.17. Despite this decline, the company's business fundamentals appear to be holding up better than its share price. In the second quarter, SoundHound AI reported a 45% year-over-year revenue increase to $61.9 million and a 33% year-over-year improvement in adjusted EBITDA loss to $9.6 million.

The company now holds $203 million in cash and no debt, and it anticipates fiscal 2026 revenue between $230 million and $260 million. While revenue growth is impressive, a significant portion of it is attributed to acquisitions rather than organic growth. SoundHound AI completed its acquisition of LivePerson in September 2025, expanding its reach to 25 of the Fortune 100 companies.

Although LivePerson's revenue declined 12% year-over-year, SoundHound AI sees potential in cross-selling its AI products to the expanded customer base and aims for $350 million to $400 million in revenue by 2027. Despite the stock's current low price, it remains speculative, and SoundHound AI did not make The Motley Fool's 10 best stocks for investment list.