Investment Opportunities in the AI Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 22h ago
0mins
Source: Fool
- SoundHound Growth Potential: SoundHound achieved a record revenue of $42 million in Q3 2025, marking a 68% year-over-year increase, with full-year sales projected between $165 million and $180 million, nearly doubling 2024's figures, indicating strong growth in the AI software sector.
- Navitas Transition Challenges: Navitas saw its revenue plummet to $10.1 million in Q3 2025 from $21.7 million in 2024, coupled with a net loss of $19.2 million, highlighting the difficulties of shifting focus from consumer markets to AI.
- Cost Control Pressure: Despite significant revenue growth, SoundHound's operating costs surged 243% year-over-year to $115.9 million in Q3, raising concerns about its long-term profitability if cost management does not improve.
- Investment Decision Considerations: When evaluating the investment merits of SoundHound versus Navitas, SoundHound's forward sales multiple is at a low point, while Navitas appears overvalued, necessitating cautious investment to mitigate potential risks.
Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 16.60 USD with a low forecast of 11.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 9.840
Low
11.00
Averages
16.60
High
26.00
Current: 9.840
Low
11.00
Averages
16.60
High
26.00
About SOUN
SoundHound AI, Inc. is engaged in conversational intelligence, offering voice and conversational artificial intelligence (AI) solutions that let businesses offer experiences to their customers. Through its proprietary technology, its voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via AI-driven products, such as Smart Answering, Smart Ordering, Dynamic Drive Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a voice assistant with integrated Generative AI, it powers various products and services, and processes billions of interactions each year for businesses. Its developer platform, Houndify, is an open-access platform that allows developers to leverage its Voice AI technology and a library of over 100 content domains, including commonly used domains for points of interest, weather, flight status, sports and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
