SoundHound AI Stock Shows Significant Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy SOUN?
Source: Fool
- Market Performance Outlook: SoundHound AI's stock currently trades at approximately $8.15, with Wall Street analysts setting an average 12-month price target of $14.62 and a high of $20, indicating strong potential for the stock to double within the next year.
- Technological Innovation Application: By integrating generative AI and audio recognition, SoundHound AI is widely deployed in the retail sector for automating order-taking, providing a solid revenue base for further investments despite the market's relatively small size.
- Customer Service Automation Prospects: If SoundHound AI successfully automates customer service centers, it could tap into significant market opportunities across industries like insurance, healthcare, and finance, having already signed contracts with clients in these sectors, indicating the potential of its services.
- Financial Performance and Valuation: The company reported a revenue growth rate of 59% in Q4 2025, with a current price-to-sales ratio of 20, which, while not cheap, is significantly lower than its historical peak of 111, making it a strong candidate for doubling in value over the next year given its rapid growth and reasonable valuation.
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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: 9.560
Low
11.00
Averages
16.60
High
26.00
Current: 9.560
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.
SoundHound AI Stock Soars 62% from 52-Week Low Ahead of Earnings
- Strong Stock Performance: SoundHound AI's stock has surged 62% from its 52-week low in March, with a 17% increase last week, indicating robust market demand and investor confidence, particularly ahead of its upcoming earnings report.
- Optimistic Analyst Ratings: Of the eight analysts covering the stock, six have assigned a ‘Buy’ rating, with an average price target of $14.63, suggesting a potential 53% upside from the last closing price, reflecting strong market confidence in the company's growth prospects.
- Acquisition Driving Growth: SoundHound is acquiring commerce AI firm LivePerson, which not only adds a new business line but also enables SoundHound to sell its AI technology to LivePerson's enterprise customers, further expanding its market share.
- Increased Investor Confidence: Vanguard Capital Management disclosed ownership of 20.35 million shares of SOUN, representing about 5.21% of the company, signaling strong institutional confidence in SoundHound, which boosts positive sentiment among retail investors.
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- Airline Industry Turmoil: Spirit Airlines has ceased all operations following a failed $500 million federal bailout attempt, a sudden development that could significantly impact airline stocks (UAL, AAL, JBLU), prompting investors to closely monitor the situation.
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- Project Freedom Launch: Trump stated on social media that 'Project Freedom' would commence on Monday to safely guide stranded ships out of the Strait, a move that not only enhances regional shipping safety but could also facilitate the restoration of international trade.
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- Oil Prices Dip Slightly: Brent crude futures fell about 0.07% and WTI crude futures dropped 0.21% as signs of easing Middle East conflict emerged, suggesting adjustments in market expectations for energy demand that could influence future investment strategies.
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SoundHound AI Shares Surge Ahead of Earnings Report
- Price Recovery: SoundHound AI's shares surged 17% at 2 p.m. ET, revisiting late January price levels, indicating strong investor anticipation for the upcoming earnings report and reflecting confidence in future growth prospects.
- Market Attention: Twilio's robust earnings report has drawn investor focus to the voice AI sector, with Twilio's voice revenues rising 20% year-over-year, suggesting strong demand in the voice AI market, which positively signals SoundHound AI's business outlook.
- Contract Backlog: Although SoundHound AI is currently unprofitable, its backlog of long-term contracts is generating actual revenue, with sales doubling in fiscal year 2025, laying a foundation for future profitability and attracting investor interest.
- Earnings Expectations: Next week's earnings report is expected to reveal an increase in new contracts and further revenue growth, enhancing investor confidence in the company's progress toward profitable operations, which may drive the stock price higher.
See More
SoundHound AI Expected to Narrow Losses in Q1 Earnings
- Earnings Expectations: According to Fiscal.ai data, Wall Street anticipates SoundHound AI to report a loss of $0.01 per share in Q1, narrowing from a loss of $0.09 per share a year ago, indicating an improvement in the company's financial outlook.
- Revenue Surge: Analysts expect the company to achieve a 40% year-on-year revenue increase to $42.56 million in Q1, which will lay a solid foundation for future profitability and growth.
- Stock Performance: Despite SoundHound AI's stock crossing the 200-day moving average only once in 2026, shares rose nearly 16% by the end of April, reflecting market optimism ahead of the earnings report.
- Strategic Expansion: Last month, SoundHound AI announced an expansion of its partnership with Casey’s, enabling the convenience retailer and pizza chain to automatically answer customer calls, which is expected to enhance customer service efficiency and drive future revenue growth.
See More
SoundHound AI Stock Shows Significant Potential
- Market Performance Outlook: SoundHound AI's stock currently trades at approximately $8.15, with Wall Street analysts setting an average 12-month price target of $14.62 and a high of $20, indicating strong potential for the stock to double within the next year.
- Technological Innovation Application: By integrating generative AI and audio recognition, SoundHound AI is widely deployed in the retail sector for automating order-taking, providing a solid revenue base for further investments despite the market's relatively small size.
- Customer Service Automation Prospects: If SoundHound AI successfully automates customer service centers, it could tap into significant market opportunities across industries like insurance, healthcare, and finance, having already signed contracts with clients in these sectors, indicating the potential of its services.
- Financial Performance and Valuation: The company reported a revenue growth rate of 59% in Q4 2025, with a current price-to-sales ratio of 20, which, while not cheap, is significantly lower than its historical peak of 111, making it a strong candidate for doubling in value over the next year given its rapid growth and reasonable valuation.
See More
SoundHound AI Stock Soars 62% from 52-Week Low Ahead of Earnings
- Strong Stock Performance: SoundHound AI's stock has surged 62% from its 52-week low in March, with a 17% increase last week, indicating robust market demand and investor confidence, particularly ahead of its upcoming earnings report.
- Optimistic Analyst Ratings: Of the eight analysts covering the stock, six have assigned a ‘Buy’ rating, with an average price target of $14.63, suggesting a potential 53% upside from the last closing price, reflecting strong market confidence in the company's growth prospects.
- Acquisition Driving Growth: SoundHound is acquiring commerce AI firm LivePerson, which not only adds a new business line but also enables SoundHound to sell its AI technology to LivePerson's enterprise customers, further expanding its market share.
- Increased Investor Confidence: Vanguard Capital Management disclosed ownership of 20.35 million shares of SOUN, representing about 5.21% of the company, signaling strong institutional confidence in SoundHound, which boosts positive sentiment among retail investors.
See More
GameStop's $55.5B Bid for eBay Sparks Skepticism Among Retail Traders
- Market Sentiment Analysis: While retail sentiment remains extremely bullish, particularly around AI and meme stocks, GameStop's $55.5 billion bid for eBay has drawn skepticism from retail traders, indicating a lack of confidence in the deal's viability.
- Airline Industry Turmoil: Spirit Airlines has ceased all operations following a failed $500 million federal bailout attempt, a sudden development that could significantly impact airline stocks (UAL, AAL, JBLU), prompting investors to closely monitor the situation.
- Economic Data Focus: Traders will be watching the release of factory orders data, which is expected to influence market sentiment, while New York Fed President John Williams is scheduled to speak at 4:50 PM, potentially affecting investor decisions.
- Earnings Season Approaches: Several companies, including Tyson Foods, Norwegian Cruise Line, and Pinnacle West, are set to report earnings this week, and investors should pay attention to the potential impact of these reports on the market amid increasing economic uncertainty.
See More
Middle East Tensions Ease, Boosting US Stock Futures
- Stock Futures Rise: U.S. stock futures increased as President Trump announced the possibility of resuming shipping through the Strait of Hormuz, with Dow Jones futures up 0.03%, S&P 500 futures up 0.06%, and Nasdaq 100 futures up 0.10%, reflecting optimistic market sentiment regarding economic recovery.
- Project Freedom Launch: Trump stated on social media that 'Project Freedom' would commence on Monday to safely guide stranded ships out of the Strait, a move that not only enhances regional shipping safety but could also facilitate the restoration of international trade.
- Shift in Market Sentiment: Positive discussions regarding the war in Iran have shifted market sentiment to 'extremely bullish', with retail sentiment for SPY and QQQ showing strong confidence on Stocktwits, indicating potential upward pressure on related stock prices.
- Oil Prices Dip Slightly: Brent crude futures fell about 0.07% and WTI crude futures dropped 0.21% as signs of easing Middle East conflict emerged, suggesting adjustments in market expectations for energy demand that could influence future investment strategies.
See More
SoundHound AI Shares Surge Ahead of Earnings Report
- Price Recovery: SoundHound AI's shares surged 17% at 2 p.m. ET, revisiting late January price levels, indicating strong investor anticipation for the upcoming earnings report and reflecting confidence in future growth prospects.
- Market Attention: Twilio's robust earnings report has drawn investor focus to the voice AI sector, with Twilio's voice revenues rising 20% year-over-year, suggesting strong demand in the voice AI market, which positively signals SoundHound AI's business outlook.
- Contract Backlog: Although SoundHound AI is currently unprofitable, its backlog of long-term contracts is generating actual revenue, with sales doubling in fiscal year 2025, laying a foundation for future profitability and attracting investor interest.
- Earnings Expectations: Next week's earnings report is expected to reveal an increase in new contracts and further revenue growth, enhancing investor confidence in the company's progress toward profitable operations, which may drive the stock price higher.
See More
SoundHound AI Expected to Narrow Losses in Q1 Earnings
- Earnings Expectations: According to Fiscal.ai data, Wall Street anticipates SoundHound AI to report a loss of $0.01 per share in Q1, narrowing from a loss of $0.09 per share a year ago, indicating an improvement in the company's financial outlook.
- Revenue Surge: Analysts expect the company to achieve a 40% year-on-year revenue increase to $42.56 million in Q1, which will lay a solid foundation for future profitability and growth.
- Stock Performance: Despite SoundHound AI's stock crossing the 200-day moving average only once in 2026, shares rose nearly 16% by the end of April, reflecting market optimism ahead of the earnings report.
- Strategic Expansion: Last month, SoundHound AI announced an expansion of its partnership with Casey’s, enabling the convenience retailer and pizza chain to automatically answer customer calls, which is expected to enhance customer service efficiency and drive future revenue growth.
See More
SoundHound AI Stock Shows Significant Potential
- Market Performance Outlook: SoundHound AI's stock currently trades at approximately $8.15, with Wall Street analysts setting an average 12-month price target of $14.62 and a high of $20, indicating strong potential for the stock to double within the next year.
- Technological Innovation Application: By integrating generative AI and audio recognition, SoundHound AI is widely deployed in the retail sector for automating order-taking, providing a solid revenue base for further investments despite the market's relatively small size.
- Customer Service Automation Prospects: If SoundHound AI successfully automates customer service centers, it could tap into significant market opportunities across industries like insurance, healthcare, and finance, having already signed contracts with clients in these sectors, indicating the potential of its services.
- Financial Performance and Valuation: The company reported a revenue growth rate of 59% in Q4 2025, with a current price-to-sales ratio of 20, which, while not cheap, is significantly lower than its historical peak of 111, making it a strong candidate for doubling in value over the next year given its rapid growth and reasonable valuation.
See More
