Shares of voice AI technology company SoundHound AI (NASDAQ: SOUN) jumped 5.7% in the afternoon session, closing the day at $8.59, up 6.2% from the previous close.
The gains came after Snowflake reported earnings results that challenged the so-called “SaaSpocalypse” narrative, a rolling selloff that had erased approximately $2 trillion from software market values since late 2025.
The selloff had been driven by fears that AI would make subscription software obsolete, particularly for platforms sitting at the center of AI workflows.
Snowflake surged 35% on the day, its best single-day performance ever, after reporting that AI accounts on its platform jumped from 9,100 to 13,600 in a single quarter.
The company also reported product revenue growth of 34% and raised its full-year guidance by $180 million, sending a strong signal across the broader software sector.
The read-through was immediate, with ServiceNow gaining 5%, Palantir rising nearly 6%, and Oracle and Microsoft each adding roughly 3%, while the iShares Expanded Tech-Software Sector ETF also moved higher.
Snowflake CFO Brian Robins described Cortex Code as creating a “step function change” in AI revenue potential, calling it the single largest driver of the full-year guidance raise.
Rather than AI displacing data platforms, Snowflake’s results suggested enterprises are using AI to generate more workloads that run on those same platforms, directly inverting the SaaSpocalypse thesis.
SoundHound AI’s shares are extremely volatile, having recorded 60 moves greater than 5% over the last year, suggesting the market views today’s move as meaningful but not fundamentally business-altering.
The stock’s most recent major move prior to this came 16 days ago, when shares dropped 5.7% after the Consumer Price Index report came in hotter than expected, with April CPI data revealing a 3.8% annual increase that surpassed economists’ forecasts.
That inflation reading dampened expectations for Federal Reserve rate cuts, which tend to negatively impact growth-oriented technology stocks by making future earnings less valuable in present terms.
SoundHound AI remains down 18.7% since the beginning of the year and is trading 59.7% below its 52-week high of $21.40 reached in October 2025, with shares currently sitting at $8.62.
