Jon Quast, The Motley FoolSun, Jul 6, 2025, 12:04 AM 5 min readIn This Article:Euphoria gave way to despair after Nvidia sold its stake in SoundHound.Investors need to develop their own investment thesis for the stock instead of reacting to Nvidia.A well-rounded thesis will include a realistic view of future competition.10 stocks we like better than SoundHound AI ›Shareholders of SoundHound AI (NASDAQ: SOUN) were riding high in 2024 after the stock posted an incredible 836% gain for the year. But 2025 is a different story. SoundHound stock is down 55% from the all-time high it reached late last year.Invest in GoldThe rise and fall of SoundHound stock has a common denominator: Nvidia. In early 2024, Nvidia revealed that it had recently invested in some promising artificial intelligence (AI) stocks, including SoundHound AI. Shares skyrocketed because investors believed this validated the small company's technology.Image source: Getty Images.In early 2025, the opposite happened when Nvidia revealed that it had sold its stake in the company.Buying or selling a stock based on another investor's actions -- in this case, Nvidia's -- can be a bad idea. It's important for investors to have their own investment thesis, or a structured argument for why the stock will go up over the long term. With this in mind, I want to explore the investment thesis for SoundHound AI stock today.SoundHound AI offers voice-assistant technology to automotive companies, restaurants, and other industries. It's considered a first-mover in the space, leaning on two decades of experience. But its revenue growth wasn't catalyzed until the relatively recent AI revolution. Now, its revenue is skyrocketing with full-year revenue growth of 85% in 2024 and stunning 151% year-over-year growth in the first quarter of 2025.Bullish investors are salivating over those numbers, particularly because of the total addressable market. According to management, the company has a $140 billion market opportunity. For perspective, it commands far less than 1% of its theoretical market as of this writing.Data by YCharts.In other words, SoundHound is growing at a head-turning rate, and the runway ahead of it appears to be massive. This combination could lead to many years of growth -- a huge factor for stocks that perform well in the long run -- which is why investors are excited about the company.They're also excited by the prospects of SoundHound's profits. Management believes it will achieve profitability by the end of this year based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That's a big step forward when thinking about long-term viability for any business.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,279.35 +51.93 (+0.83%)Dow 3044,828.53 +344.11 (+0.77%)Nasdaq20,601.10 +207.97 (+1.02%)Russell 20002,249.04 +22.66 (+1.02%)VIX17.48 +1.10 (+6.72%)Gold3,346.50 +3.60 (+0.11%)PortfolioSign in to access your portfolioSign inTop gainersBMNR Bitmine Immersion Technologies, Inc. 135.00 +76.50 (+130.77%)RUN Sunrun Inc. 10.50 +1.51 (+16.80%)TRIP Tripadvisor, Inc. 17.50 +2.51 (+16.74%)DDOG Datadog, Inc. 155.15 +20.14 (+14.92%)SYM Symbotic Inc. 47.91 +5.71 (+13.53%)Top losersLEN Lennar Corporation 110.12 -4.69 (-4.09%)LEN-B Lennar Corporation 105.62 -4.37 (-3.97%)ESGRP Enstar Group Limited 19.45 -0.79 (-3.91%)HOOD Robinhood Markets, Inc. 94.40 -3.58 (-3.65%)BG Bunge Global SA 78.44 -2.95 (-3.62%)Most activeLCID Lucid Group, Inc. 2.1600 +0.1100 (+5.37%)NVDA NVIDIA Corporation 159.34 +2.09 (+1.33%)INTC Intel Corporation 22.49 +0.61 (+2.79%)F Ford Motor Company 11.81 +0.04 (+0.34%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)Earnings eventsTrending tickersLKNCY Luckin Coffee Inc. 38.49 +0.50 (+1.32%)MMM 3M Company 152.94 -1.03 (-0.67%)LRCX Lam Research Corporation 98.81 -0.02 (-0.02%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)GRNY Tidal Trust III - Fundstrat Granny Shots US Large Cap ETF 22.87 +0.23 (+1.02%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.