SoundHound AI Inc.
(NASDAQ:SOUN) stock surged more than 26% in Thursday's premarket session after the conversational AI company reported stronger-than-expected second-quarter results and raised its full-year 2026 revenue guidance.
The rally was likely fueled by a short squeeze, with 42.35% of SoundHound AI's public float, or about 169.2 million shares, sold short.
The elevated short interest suggests a large number of investors were betting against the stock, forcing some to cover their positions as shares surged.
SoundHound AI Q2 Results Beat Expectations Revenue increased 45% year over year to $61.9 million, topping the analyst consensus estimate of $52.39 million.
