SoundHound AI (NASDAQ: SOUN) has been one of the most volatile stocks of the artificial intelligence (AI) era, and that pattern continued in January. In a rough month for AI stocks, SoundHound, which provides AI voice technology for carmakers,

After a remarkable 2024 in which SoundHound AI (NASDAQ: SOUN) stock surged in price by a stunning 836%, the new year has got off to a disastrous start as the voice artificial intelligence (AI) solutions provider has already lost more than 17% of its value as of this writing and was down as much as 36% earlier in the month.

SoundHound's fundamentals are strong, with significant revenue growth and narrowed net losses, but the valuation is excessively high. See why SOUN is sell rated.

Unsurprisingly, SoundHound is posting impressive growth as more clients implement its voice AI solutions. Third-quarter revenue jumped 89% year over year to $25.1 million. The company has also dramatically diversified its customer base, with only 12% of this quarter's sales coming from its largest client compared to 72% in the prior-year period.

SoundHound AI Inc (NASDAQ:SOUN) shares are trading lower Tuesday after the company filed for a mixed shelf offering of up to $500 million.