SoundHound AI Soars Over 700%: Short Squeeze Potential Has Traders Talking

SoundHound AI Inc SOUN stock skyrocketed 713% this year and 173% this month.

The company, which specializes in voice AI technology, is trading at an all-time — and 52-week high — of $17.29 on Friday.

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SOUN stock's technical signals are flashing green across the board. Trading well above its eight, 20 and 50-day simple moving averages, SoundHound is in strongly bullish territory.

Key indicators like its relative strength index (RSI) of 80.89 may point to an overbought status, but they've done little to slow its momentum. Even the moving average convergence divergence (MACD) indicator at 2.55 screams Bullish.

Read Also: What’s Going On With SoundHound AI Stock?

What's Fueling The Frenzy?

SoundHound’s rise from a low of $1.62 earlier this year underscores the wave of AI excitement. Nvidia Corp's NVDA multimillion-dollar investment earlier this year lent credibility to SoundHound's voice AI tech, while analysts now expect revenue to grow nearly 97% annually.

The company's partnerships in automotive, fast food, and consumer electronics have further cemented its place as a niche leader.

Is A Short Squeeze In The Cards?

Adding fuel to the fire, 24.4% of the stock's float is shorted, positioning it perfectly for a short squeeze. Retail investors, particularly on social media platforms, have latched onto the potential for explosive gains, creating a feedback loop of buying pressure.

With its cutting-edge voice AI tech and strong market fit, the stock might still have room to grow—but overbought signals suggest investors should proceed with caution.

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