SoundHound AI: A Rising Star in Voice AI Technology Attracts Investor Attention

Buy this AI stock with more than 25% upside after a big decline, Piper Sandler says

SoundHound AI is a pure play in the rise of artificial intelligence that investors shouldn't overlook, according to Piper Sandler. The firm initiated coverage of the AI stock on Monday with an overweight rating and a $12 per share price target. Piper Sandler's forecast implies more than 25% upside from Friday's $9.58 close. "With its voice-A.I platform, SoundHound is a direct play on the A.I revolution," analyst James Fish wrote. The analyst highlighted a multitude of segments into which SoundHound can expand its growth runway, including further integrating its conversational AI technology into auto. SOUN YTD mountain SoundHound AI stock in 2025. "SoundHound's original enterprise use-case was mainly in autos. There are multiple underlying positives for SoundHound here: just 4% penetration vs. white space of +25%, winning new OEMs, increasing IoT [internet of things] devices, ASPs expanding, & domestic," the analyst said. "However, the auto-production slump (-1% Y/Y) and customer exposure (-4%) are creating challenges near-term." ""The $47B serviceable opportunity across use-cases by 2027E is very early still," Fish said. "Positively, we see a multi-headed A.I "monster" across QSRs & conversational A.I, early penetration in autos with increasing ASPs, leverage coming near to medium term given the business model transition & Amelia synergies, and a competitive advantage vs. even hyperscalers' voice offerings." SoundHound shares have taken a beating this year, losing more than half of their value. However, the stock has rallied nearly 18% in the second quarter and gained nearly 5% in the premarket. Only seven analysts cover the stock, per LSEG. Of those, four have a buy or strong buy rating while the remaining three rate it a hold. The average price target on SoundHound points to 23% upside.

SoundHound AI (SOUN) Stock Jumps 15%: What's Going On? - SoundHound AI (NASDAQ:SOUN)

Shares of SoundHound AI Inc SOUN surged as much as 15% Tuesday morning to $11.02, rebounding sharply after a brief sell-off last week, and despite a lack of company specific news for the session. Here's what investors need to know. What To Know: The renewed momentum comes despite SoundHound's mixed first-quarter earnings report on May 8. The voice AI specialist reported $29.13 million in revenue, missing estimates of $30.38 million. However, the company exceeded earnings expectations with an adjusted loss of 6 cents per share, beating forecasts by 3 cents. Revenue grew 151% year-over-year, driven by acquisitions and increasing demand from the automotive and restaurant industries. Read Also: Navitas Semiconductor Soars 146% On NVIDIA Partnership For AI Power Systems While gross margin dipped sequentially and adjusted EBITDA loss widened to $22.2 million, SoundHound maintained its 2025 revenue guidance of $157 million to $177 million. The company ended the quarter with $246 million in cash and no debt, signaling strong liquidity. Analysts highlighted the company's expanding customer base and robust pipeline. Despite trimming its price target to $18, H.C. Wainwright reaffirmed a Buy rating, citing long-term potential in SoundHound's proprietary AI platform and expanding market presence. Read Also: Trump's Tariffs May Trigger An Inflation Shock - But Not A Lasting One, Goldman Sachs Says How To Buy SOUN Stock By now you're likely curious about how to participate in the market for SoundHound AI - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. In the case of SoundHound AI, which is trading at $10.62 as of publishing time, $100 would buy you 9.42 shares of stock. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. According to data from Benzinga Pro, SOUN has a 52-week high of $24.98 and a 52-week low of $3.82. Image: Shutterstock SOUNSoundHound AI Inc$10.8012.8%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum95.44GrowthNot AvailableQualityNot AvailableValue7.39Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Shares of SoundHound AI Are Soaring Today | The Motley Fool

Shares of the voice-powered artificial intelligence (AI) company SoundHound AI (SOUN 11.79%) traded nearly 13% higher as of 11:18 a.m. ET today. Analysts at Piper Sandler initiated coverage of the stock Tuesday morning with an overweight rating. Piper Sandler analyst James Fish wrote in his initiation note that SoundHound, which provides advanced AI voice assistants, is a great way to play the AI trade, and the company has just begun to tap into its potential. He added that he sees a combined $30 billion serviceable addressable market by 2027. Furthermore, Fish and his team expect SoundHound to transition to more of a subscription model, in which revenue from this segment of the business could make up 90% of total revenue in just a few years. Two years ago, subscription revenue represented just 4% of total sales. Fish has a price target on the stock of $12, implying another 12% upside, even after this recent rally. SoundHound AI certainly looks to have a long runway and is making financial progress as well. Revenue in the first quarter of 2025 grew more than 150% year over year, while the company reported $0.31 earnings per share and a $0.06 loss per share on an adjusted basis. With a $4.3 billion market cap, the stock is still expensive, so like many of my recommendations on these AI stocks with big potential, you can start to accumulate shares but don't need to go all in just yet.

SoundHound shares jump as Piper Sandler starts coverage at Overweight By Investing.com

Investing.com -- Piper Sandler has initiated coverage on SoundHound AI (NASDAQ:SOUN) with an Overweight rating and a $12 price target, describing the company as a "direct play on the A.I revolution" through its voice-AI platform. The company's shares jumped 5% in premarket trading Tuesday. The broker's analysts argue that SoundHound's technology, particularly its combined ASR and NLP architecture, offers a competitive advantage in delivering dynamic, real-time conversational AI experiences. SoundHound's product suite spans across the auto, IoT, restaurant, and customer service sectors, with Piper Sandler identifying quick-service restaurants (QSRs) and customer experience (CX) as the company's most promising verticals. The acquisition of Amelia has enabled SoundHound to enter the conversational AI space for contact centers, which Piper Sandler sees as a $30 billion addressable market by 2027. "Combined, we see a $30B serviceable addressable market by 2027, with SoundHound an early leader in each market," analysts James E. Fish and Caden Dahl said in a Monday note. They also see improving financial leverage as the company transitions to a subscription-based model. Subscription and "Over-Time" revenues are expected to comprise about 90% of total revenues by 2027, up from just 4% two years ago. Piper believes this shift, along with anticipated synergies from the Amelia acquisition, will help drive margins higher. "At a minimum, we think synergies could boost margins by >10% over the next few years." Despite their bullishness for the long-term opportunity, SoundHound is not without its challenges, particularly in the auto segment where production headwinds persist. Auto exposure is currently around 25% of global production, but SoundHound's four key OEM clients are expected to see a 4% decline in sales this year. "We are wary of other items such as auto production, low profitability but need for more awareness, and debate around organic growth, but see the opportunities and setup as more compelling at these levels," the analysts concluded.