SoundHound AI (SOUN) is down 40% year-to-date as investors have largely shunned the generative artificial intelligence frenzy in 2025. 

Broadly, however, the speech recognition specialist is seen as a niche player in the AI space with huge monetization opportunities in automotive and enterprise voice solutions. Investor euphoria hit a high when H.C. Wainwright’s Scott Buck reiterated a Street-consensus high price target of $26 in March – more than double its current trading level. Although Buck has since adjusted his price target to $18, his Street-high figure still implies more than 50% upside potential. 

Though the AI space is overcrowded with hype, SoundHound’s unique business model of conversational intelligence and embedded AI is starting to get more institutional attention. Recent price action in the stock and high levels of trading activity indicate that more and more investors are betting on this vision.

About SoundHound AI Stock

SoundHound AI (SOUN) is a pioneering voice AI platform that specializes in natural language processing and conversational intelligence for commercial clients. The firm caters to industries such as the automotive, hospitality, and consumer services sectors. Based in Santa Clara, California, SoundHound is a high-growth firm in the artificial intelligence space with a market capitalization of $4.49 billion.

SOUN shares have risen from a 52-week low of $3.82 up to a high of $12.61 recently, with its current price just below $12. This represents a one-year gain of over 120%, which significantly exceeds the Nasdaq Composite Index ($NASX). 

Despite the YTD selloff, the stock remains richly valued, with a forward price-sales ratio of 51.86x, significantly higher than the typical ratios for software or the general AI space. Although the company is not yet a net income generator, bulls contend that the multiple is warranted when considering its scalable architecture and growing number of applications.

SoundHound AI Misses Revenue Estimates, Long-Term Case Still Holds 

For 2024, SoundHound reported $84.7 million in annual sales, up 85% from 2023. Its net loss widened dramtaically to $350.7 million from $88.9 million. 

Its first-quarter results, released on May 8, also showed strong revenue growth. Q1 revenue of $29.1 million was up more than 150% year-over-year, however it missed analyst estimates of $30.46 million. Its earnings per share of $0.31 significantly beat estimates for a loss of $0.08 per share. When removing one-time gains, SoundHound lost $0.06 per share on an adjusted basis. 

Investors punished the company after its results were released, sending shares down nearly 8% on May 9. 

Over the long term, however, its vision remains intact. The company has continued to target larger contracts and has also worked to remove revenue concentration risks. In Q1, it said that no one customer accounted for more than 10% of revenue. 

SoundHound is benefiting from recent acquisitions and also expects to make progress in the auto and restaurant sectors in the coming quarters. 

What Do Analysts Expect for SoundHound AI Stock?

SoundHound has a consensus “Moderate Buy” rating based on six analysts in coverage. Three analysts rate the stock as a “Strong Buy” and three have a “Hold” rating. 

In the last 90 days, there has not been any change in the consensus rating as there is a positive but cautious attitude toward the stock. Its average price target is $12.75, roughly 8% higher than its current price. 

However, the most aggressive estimate comes from H.C. Wainwright’s Scott Buck, with a Street-high estimate of $18, which implies upside potential of more than 50%.