SoundHound AI: A Potential Millionaire Maker Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SOUN?
Source: Fool
- Technological Edge: SoundHound AI, as an artificial intelligence voice company, has developed 'speech-to-meaning' and 'deep meaning understanding' technologies that enable voice assistants to interact more naturally, achieving significant progress in the automotive and restaurant sectors.
- Transformative Acquisition: The acquisition of Amelia in summer 2024 allowed SoundHound to combine its AI voice technology with virtual agents, launching the Amelia 7.0 platform, particularly enhancing its competitiveness in highly regulated industries like healthcare and finance.
- Revenue Surge: In the first nine months of 2025, SoundHound's revenue more than doubled, and while it is not yet profitable, it forecasts nearing break-even profitability in 2026, indicating strong growth potential.
- Market Opportunity: With a market cap of over $3 billion, SoundHound has the potential to become a voice-driven leader in customer service, which could yield tenfold returns for investors if successful.
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Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 7.460
Low
11.00
Averages
16.60
High
26.00
Current: 7.460
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.
- Significant Revenue Growth: SoundHound's revenue more than doubled in the first nine months of 2025, showcasing its strong growth potential in the AI sector, particularly in voice technology applications, which may lay the groundwork for future profitability.
- Innovative Technology Integration: By acquiring Amelia, SoundHound has combined its voice technology with virtual agents to launch the Amelia 7.0 platform, aimed at enhancing interaction experiences in customer service, thereby strengthening its competitive edge in highly regulated industries.
- Huge Market Opportunity: With a market cap of over $3 billion, SoundHound, despite not being profitable yet, has the potential for its stock to increase tenfold due to its opportunities in agentic AI, particularly in establishing a leadership position in customer service.
- Optimistic Future Outlook: The company forecasts nearing break-even profitability in 2026, and with its innovations and growth in the AI market, SoundHound is poised to become a “millionaire maker” for investors, further driving its market value upward.
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- Technological Edge: SoundHound AI, as an artificial intelligence voice company, has developed 'speech-to-meaning' and 'deep meaning understanding' technologies that enable voice assistants to interact more naturally, achieving significant progress in the automotive and restaurant sectors.
- Transformative Acquisition: The acquisition of Amelia in summer 2024 allowed SoundHound to combine its AI voice technology with virtual agents, launching the Amelia 7.0 platform, particularly enhancing its competitiveness in highly regulated industries like healthcare and finance.
- Revenue Surge: In the first nine months of 2025, SoundHound's revenue more than doubled, and while it is not yet profitable, it forecasts nearing break-even profitability in 2026, indicating strong growth potential.
- Market Opportunity: With a market cap of over $3 billion, SoundHound has the potential to become a voice-driven leader in customer service, which could yield tenfold returns for investors if successful.
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- Technological Edge: SoundHound AI, as an AI-powered voice company, has developed 'speech-to-meaning' and 'deep meaning understanding' technologies that have significantly advanced its presence in the automotive and restaurant sectors, enhancing its ability to interact naturally with users and strengthening its market competitiveness.
- Transformative Acquisition: The acquisition of Amelia in the summer of 2024 allowed SoundHound to combine its voice technology with virtual agents, launching the Amelia 7.0 platform, which shows strong application potential in highly regulated industries like healthcare and finance, thereby expanding its business scope.
- Revenue Surge: In the first nine months of 2025, SoundHound's revenue more than doubled, and while it is not yet profitable, it forecasts nearing break-even profitability by 2026, indicating significant market opportunities in the agentic AI space.
- Market Potential: With a market cap of over $3 billion, SoundHound AI, as a speculative small-cap stock, could see its share price multiply tenfold if it becomes the voice-driven leader in customer service, drawing investor interest.
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- Significant Stock Decline: SoundHound AI's stock has plummeted approximately 65% since reaching an all-time high in December 2024, currently trading just above $8, indicating market concerns regarding its future profitability.
- Shifting Market Sentiment: Although market sentiment has improved since the lows following Trump's tariff announcements in April 2024, this positive outlook has not translated into a stock price recovery for SoundHound AI, reflecting investor skepticism about its earnings potential.
- Severe Operating Losses: SoundHound AI regularly incurs operating losses that are about double its revenue, raising concerns about its sustainability, despite a notable 68% year-over-year revenue growth in the third quarter.
- High Valuation Risks: Despite a decline in market optimism, SoundHound AI maintains a price-to-sales ratio that is higher than most software companies, indicating its unique position in rapid growth, but also increasing investment risks due to its unprofitability.
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- Strong Order Backlog: SoundHound AI boasts an order backlog exceeding $1 billion, indicating customer recognition of long-term value despite the company not yet being profitable, which is expected to drive future revenue growth.
- Significant Sales Growth: The company experienced a 120% increase in sales over the past year, reflecting substantial progress in revenue collection from long-term contracts, even as it faces a net loss of $313.4 million.
- Overreaction in Market: The stock's valuation reset due to macroeconomic pressures and AI bubble concerns seems excessive, as the company's fundamentals remain intact, presenting a buying opportunity for patient investors.
- Optimistic Future Outlook: Analysts predict positive EPS by fiscal year 2027, and while profitability is still a few years away, the company is scaling rapidly with high customer loyalty, indicating significant potential in the voice AI market.
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- Market Demand Recognition: SoundHound AI's voice AI platform aims to address pain points in customer service, particularly in noisy environments, with its restaurant voice ordering system achieving 32% higher accuracy than human employees, 85% faster service, and annual cost savings of $58,000 per location, showcasing its potential in the food industry.
- Competitive Pressure: Despite some success in the restaurant sector, SoundHound's technology is not unique, facing fierce competition from established AI assistants like Apple's Siri, and the lack of a competitive moat raises concerns about its long-term prospects.
- Data Acquisition Challenges: SoundHound struggles to obtain sufficient customer interaction data to train its AI, as relying on restaurant order transcripts may not meet the demands of broader customer service applications, limiting its market expansion capabilities.
- Poor Financial Health: The company is currently unprofitable with negative cash flow, having doubled its share count over the past three years and relying on capital dilution for funding, which may hinder its future technology development and market competitiveness.
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