SOUN Should I Buy
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SoundHound AI Inc (SOUN) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The company's strong revenue growth, increasing adoption of its AI technology, and significant market potential in the AI sector outweigh the current technical weakness and pre-market price dip. The stock's long-term potential aligns well with the user's investment goals.
The technical indicators suggest a bearish trend in the short term. The MACD is below zero and negatively contracting, RSI is neutral at 45.377, and moving averages indicate a bearish alignment (SMA_200 > SMA_20 > SMA_5). Key support and resistance levels are Pivot: 7.965, R1: 8.713, S1: 7.216, R2: 9.176, S2: 6.753.
Hedge funds are significantly increasing their positions, with buying up 838.64% last quarter.
SoundHound AI is positioning itself as a key player in the growing AI market, which is expected to grow at a 31% annual rate through
The company has a billion-dollar backlog of contracts and expects to achieve break-even EBITDA by
Analysts at Cantor Fitzgerald upgraded the stock to Overweight, citing strong execution and low expectations heading into 2026.
The stock is down approximately 70% from its all-time high.
The company reported a Q3 2025 net loss of $109.3 million, with a gross margin drop of 15.31% YoY.
Technical indicators suggest a bearish short-term trend.
In Q3 2025, SoundHound AI reported a 67.57% YoY revenue increase to $42.05 million. However, net income was -$111.13 million, an improvement of 410.92% YoY. EPS improved to -$0.27, up 350% YoY. Gross margin decreased to 33.13%, down 15.31% YoY.
Analyst sentiment is mixed but leans positive. Cantor Fitzgerald upgraded the stock to Overweight with a $15 price target, citing strong execution and low expectations. Piper Sandler lowered its price target to $11 from $15, maintaining a Neutral rating due to adjusted estimates from 10Q disclosures.
