SoundHound AI reported a record second quarter in early August. The company's results beat expectations and led to a raised full-year outlook. Despite this, SoundHound AI now faces significant bearish sentiment. As of August 10, 2026, the company leads tech stocks with high short interest. 41.95% of its shares are sold short.
This development highlights a stark division in market opinion. SoundHound AI's strong performance, driven by its OASYS agentic AI platform, prompted bullish analyst price targets. However, high short interest indicates a substantial portion of investors bet against the company's current valuation and future growth prospects. This sentiment stems from the company's ongoing unprofitability.