SoundHound AI Inc (NASDAQ:SOUN) shares are trading lower Tuesday, pulling back from recent strength. The rally really accelerated in November when the company reported strong earnings. Here's what you need to know.

Therefore, SoundHound's stock could still be cut in half over the next two years if it doesn't meet its own lofty expectations. Meanwhile, two more reasonably valued AI stocks -- Innodata ( INOD 8.17%) and SentinelOn e ( S 0.45%) -- might have a shot a outperforming SoundHound and exceeding its market cap over the next two years.

The company's share price was down 12.3% as of 11:30 a.m. ET. Meanwhile, the S&P 500 index was up 0.6%, and the Nasdaq Composite index was up 0.7%. Despite being down big as of this writing, SoundHound AI stock actually started the day with big gains.

It's looking increasingly likely that the artificial intelligence (AI) boom could extend into 2025 as new applications and advancements come to light. And while I view the Magnificent Seven companies as primed to continue winning for investors,

SoundHound Chief Financial Officer Nitesh Sharan is participating in a conference call hosted by Northland Wednesday afternoon