After artificial intelligence (AI) burst on to the scene in 2022, AI-based companies became a hot investment on Wall Street. This helps to explain why shares of tech company SoundHound AI (NASDAQ: SOUN) rocketed from a 52-week low of $1.49 last year to $10.25 on March 14.

But just days later, financial services firm Cantor Fitzgerald downgraded the stock because of SoundHound's lofty valuation at the time. Consequently, shares lost more than half their value, and hover around $4 at the time of this writing.

Does this signal a buy opportunity, or do reasons exist to avoid the stock? Let's dig into SoundHound to determine if it makes a good investment for the long haul.

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Source Fool.com