SoundHound AI (SOUN) Rises 6.2% as Snowflake's Strong Results Lift Software Sector, Easing SaaS Fears

SoundHound AI (NASDAQ:SOUN) shares climbed 6.2% to $8.59 on May 29, 2026, after Snowflake’s blockbuster earnings provided evidence that fears of AI dismantling software-as-a-service business models were overblown. The rally swept across the software sector as Snowflake reported AI accounts on its platform surged from 9,100 to 13,600 in a single quarter, product revenue grew 34%, and it raised full-year guidance by $180 million. Snowflake shares jumped 35% on the results, and the read-through lifted ServiceNow 5%, Palantir nearly 6%, and Oracle and Microsoft each about 3%. The “SaaSpocalypse” thesis—that autonomous AI agents would replace per-seat software licenses—was inverted as enterprises used AI to drive more workloads onto existing platforms rather than displacing them. SoundHound, a voice AI technology company, benefited from the renewed confidence in software firms positioned at the center of AI workflows. The stock remains 59.7% below its 52-week high of $21.40 reached in October 2025.