When investors think about high-flying artificial intelligence (AI) stocks, Nvidia or Palantir Technologies probably come immediately to mind. While both of those AI stocks indeed delivered huge returns in 2024,

NVIDIA Corporation NVDA has been around for decades. However, with the advent of artificial intelligence (AI), the company has witnessed explosive business growth. In the past year, NVDA stock has surged 149%, becoming one of the top S&P 500 performers of 2024.

The price action in SoundHound AI (NASDAQ: SOUN) is down 35% YTD in 2025 and may fall further, but this isn’t a stock to sell too quickly. The price action is driven by uncertainty and high short interest that fails to account for its position in AI.

SoundHound AI (NASDAQ: SOUN) stock is surging higher in Tuesday's trading thanks to a duo of catalysts. The conversational artificial intelligence (AI) specialist's share price was up 11.7% at 1:10 p.

There may not be a hotter stock heading into 2025 than SoundHound AI (NASDAQ: SOUN). While there are some key risks to understand with SoundHound, this could be a chance to get in on the stock before it heads higher.

The company's share price was up 11% as of 11 a.m. ET and had been up as much as 14.9% earlier in the daily session. Meanwhile, the S&P 500 index was up 1.6% and the Nasdaq Composite index was up 2.1%.