One artificial intelligence (AI) stock that has received a lot of buzz is SoundHound AI (NASDAQ: SOUN). While the reasons for the hype are numerous, they don't overshadow the fact that SoundHound AI is growing rapidly with a bullish outlook in 2025.

Impressive news from a high-profile business partner was a major reason for the stock price pop experienced by SoundHound AI (NASDAQ: SOUN) on Thursday. The artificial intelligence (AI) company was up by nearly 9% in late-session trading,

SoundHound AI ( SOUN) shares plunged 16% Wednesday, a day after the provider of artificial intelligence (AI) voice technology software reported a big drop in gross margin . The Nvidia ( NVDA )-backed company’s third-quarter GAAP gross margin sank 24.3 percentage points to 48.6%, and non-GAAP gross margin tumbled 14.0 percentage points to 59.7%.

SoundHound AI (NASDAQ: SOUN) stock is up over 200% in 2024. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » *Stock prices used were the afternoon prices of Nov.

Despite a strong AI-backed portfolio and an expanding clientele, SOUN's modest near-term prospects make the stock a risky buy.

In SoundHound's third-quarter results, which went up to the end of September, the company again generated fantastic revenue growth, with sales rising by 89% year over year to $25.1 million. But according to the company's earnings report, the increase in revenue was primarily due to SoundHound's recent acquisitions of AI companies Amelia and SYNQ3.