SoundHound AI Stock Surges 14% Amid Strong Revenue Growth and AI Momentum

SoundHound AI (SOUN) stock explodes 14% as revenue soars 151% -- is this the breakout moment investors have been waiting for in 2025?

SoundHound AI stock (NASDAQ: SOUN) made headlines on Tuesday after a powerful 14% surge that pushed it past key analyst price targets. The move has captured the attention of investors looking for the next big AI opportunity -- and for good reason. SoundHound's stock closed with an impressive double-digit gain, outperforming much of the broader market and breaking above levels many analysts didn't expect so soon. With AI continuing to be one of the most talked-about sectors in 2025, SoundHound's sharp move raises a real question: Is SOUN the smart AI stock to bet on right now? The latest jump in SoundHound AI's stock price wasn't random. It followed a wave of strong buying activity and better-than-expected performance that saw the company trade above multiple analyst price targets. Many on Wall Street had set a $11.38 average target, with some bullish calls going as high as $18. After Tuesday's rally, SoundHound closed around $13.19, suggesting it has already broken past short-term resistance. Volume was also telling. The stock saw over 33.7 million shares traded, a huge spike from average daily volume, reflecting renewed investor excitement. Much of this momentum comes from SoundHound's continued expansion in voice AI, its big-name partnerships with Mercedes-Benz, Chipotle, and Hyundai, and a recently announced $1.2 billion booking backlog. SoundHound AI (NASDAQ: SOUN) made waves on July 8, 2025, as its stock skyrocketed by 14% intraday -- a surge that pushed its price from around $11.38 to $13.19, easily breaching analysts' 12-month average price target of $11.38. The explosive rally was backed by heavy trading volume, with more than 37.9 million shares exchanged, indicating a wave of fresh buying interest. The rally signals renewed investor enthusiasm around AI stocks -- and SoundHound is standing out in the crowd. Over the past week alone, SOUN stock is up 14.8%, and it has gained 8.2% over the past month. On a year-over-year basis, the stock has delivered a stunning 190% return, far outpacing many of its AI rivals. With a beta of 3.1, the stock remains highly volatile -- a dream for aggressive traders and a caution sign for the risk-averse. The stock's momentum is backed by powerful financials. In Q1 2025, SoundHound posted $29.1 million in revenue, marking a 151% year-over-year growth. For the full year, it expects revenue between $157 million and $177 million, nearly double its 2024 figure of $84.7 million. Investors are also eyeing SoundHound's massive $1.2 billion booking backlog, which is up 75% year-over-year, alongside a strong balance sheet with $246 million in cash, no long-term debt, and total liabilities under $200 million. Major partnerships continue to drive demand, with automotive giants like Mercedes-Benz, Hyundai, and Kia integrating SoundHound's voice AI. Meanwhile, enterprises like Chipotle are using its tech to power automated ordering and enhance customer experience. Many investors have been comparing SoundHound AI to BigBear.ai (NYSE: BBAI), another AI stock riding the 2025 tech wave. But based on fundamentals, SoundHound appears to have the upper hand: If you're thinking long term, these differences matter. One company is aggressively growing with commercial demand, the other is waiting on federal contracts. Let's do the math. After the recent 14% jump, SoundHound is trading around $13.19. Some bullish forecasts put the stock at $25-26 by 2027, based on growth trends and projected earnings. That would be nearly a 2x return from current levels. And the company is already laying the groundwork: With no long-term debt and major enterprise partners using its AI solutions, SoundHound has the runway to grow -- and possibly double in value within two to three years. If you're looking for an AI stock with momentum, strong financials, and real-world partnerships, SoundHound AI is worth a serious look. It's not without risk -- like all growth tech, it's volatile. But after Tuesday's breakout and continued business wins, SOUN may be transitioning from speculative to solid. As always, it's smart to do your own research, but the pieces are lining up for SoundHound to be one of 2025's standout AI investments. Still, some concerns remain. SoundHound is not yet profitable, with a Q1 GAAP net loss of $0.06 per share. It also faces the challenge of turning its $1.2 billion in bookings into real revenue, which will be key to sustaining its valuation. In short, SoundHound AI's breakout reflects a blend of surging growth, strong client traction, and AI hype -- but long-term investors should watch closely how the company executes over the next few quarters. Q1. Why is SoundHound AI stock up 14% in 2025? Because of huge revenue growth, strong bookings, and rising investor interest in voice AI. Q2. Can SoundHound AI stock double by 2027? Yes, if it keeps growing fast and turns its $1.2B backlog into real revenue.

What's Going On With SoundHound AI (SOUN) Shares Today? - SoundHound AI (NASDAQ:SOUN)

Shares of SoundHound AI Inc SOUN traded slightly lower on Thursday, following a surge that saw the stock gain approximately 30% during the second quarter. This impressive run comes amid a 10% increase over the trailing week, signaling strong investor interest in the voice AI innovator. What To Know: Potentially fueling this optimism is a number of bullish analyst ratings. Piper Sandler recently initiated coverage with a $12 price target, while Wedbush and HC Wainwright reiterated their positive outlooks, setting targets of $15 and $18, respectively. This confidence stems from the company's robust performance, including a remarkable 151% year-over-year revenue increase in the first quarter. Looking ahead, SoundHound has forecast full-year revenue to come in between $157 million and $177 million. The broader adoption of artificial intelligence in the restaurant industry is a significant tailwind for the company. As major chains like McDonald's, Dine Brands and Yum Brands increasingly integrate AI for operational efficiency and customer service, SoundHound's conversational AI technology is viewed as a key enabler for 2025. Investors are now eagerly awaiting the company's second-quarter results, which are anticipated in early August. Current analyst forecasts project quarterly revenue of $32.88 million. Benzinga Edge Rankings: Based on the latest Benzinga Edge stock rankings, SoundHound presents a mixed profile based on the available metrics. The stock demonstrates exceptional strength in one key area, scoring a 94.49 for Momentum, suggesting strong recent performance and investor interest. However, it receives a very low score of 7.27 for Value, indicating that it may be considered overvalued based on its underlying financial fundamentals. Price Action: According to data from Benzinga Pro, SoundHound shares closed Thursday down 1.42% at $11.09. The stock has a 52-week high of $24.98 and a 52-week low of $3.87. Read Also: Quantum, AI, Nuclear: Three Frontiers, One Launchpad Powered By Defiance ETFs How To Buy SOUN Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in SoundHound AI's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock SOUNSoundHound AI Inc$11.03-1.96%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum94.49GrowthNot AvailableQualityNot AvailableValue7.27Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI Plunged 35% In 2025 - Is It Still Worth Owning? - SoundHound AI (NASDAQ:SOUN)

SoundHound AI SOUN stock is soaring on Tuesday. However, the stock plunged over 35% year-to-date. What Contributed The Decline On February 14, the stock tumbled 27% after Nvidia Corp NVDA disclosed that it had dissolved its stake in the company. Nvidia's exit casts doubt on SoundHound AI's future growth and stability. As a key AI player, Nvidia likely gave other investors confidence through its backing. On March 26, CNBC's Jim Cramer recommended selling SoundHound AI, dismissing it as a complete meme stock. Also Read: SoundHound AI Integrates NVIDIA's Software To Accelerate Voice AI Technologies Retail investors on social media hype up meme stocks, which often have compelling stories that drive their popularity. GameStop and AMC Entertainment Holdings rank among the most well-known examples. On May 8, the conversational AI company reported first-quarter revenue of $29.13 million, up 151% year over year, missing analyst estimates of $30.38 million. The stock lost close to 4% in value after the results. SoundHound AI reaffirmed its full-year 2025 revenue guidance of $157 million-$177 million versus estimates of $166.17 million. Potential Rivals As per a June 27 report, Meta Platforms META is exploring acquiring voice-cloning startup PlayAI to strengthen its push into conversational AI and build a superintelligence lab. Meanwhile, OpenAI enhanced ChatGPT's voice assistant in March, making it more natural and engaging as competition in the AI voice space heats up. Wedbush's Daniel Ives expects Apple Inc AAPL to enter the conversational AI space by acquiring Perplexity AI to boost search capabilities and stay competitive. They urge Apple to move beyond its cautious approach, citing growing pressure from rivals like OpenAI, Alphabet Inc GOOGL Google, and Microsoft Corp MSFT. Analyst Opinion Eight analysts have set a consensus price forecast of $10.50 for SoundHound AI. HC Wainwright gave the highest forecast at $18 on May 12, 2025. The latest ratings from Piper Sandler (May 27), HC Wainwright & Co. (May 12), and Wedbush (May 9) average a $15 target, suggesting a potential upside of 13.85% for the stock. H.C. Wainwright analyst Scott Buck noted a growing customer base across sectors and 13,000+ restaurant locations as signs of strong business diversification. According to the analyst, SoundHound AI's restaurant segment could generate over $31 million in annual recurring revenue, with room to expand in 2025. He said gross margins will likely improve toward 70% over time despite short-term declines due to recent acquisitions. Buck added that SoundHound AI's $246 million in cash and no debt give the company flexibility for strategic M&A and organic growth opportunities. Buck now projects SoundHound AI will generate $164 million in revenue for 2025, down from his earlier $170 million estimate but still within the company's $157 million-$177 million guidance range. He forecasts an adjusted EBITDA loss of $50.4 million for the year, including a $0.9 million profit in Q4, marking a key turning point for the business. For 2026, Buck expects revenue to rise 34.1% to $220 million, with the adjusted EBITDA loss narrowing to $26.1 million. He anticipates greater visibility as the company scales in the coming quarters. On June 19, Wedbush's Dan Ives included SoundHound AI in his new ETF, calling it one of the overlooked names poised to benefit from the AI revolution. He noted that investors undervalue AI's long-term growth and that focusing only on valuation risks misses transformative tech stocks like SoundHound. Price Action: SOUN shares traded higher by 13.2% at $12.87 at the last check Tuesday. Read Next: Alibaba's Delivery Ambition Sets Stage For China's Epic Clash Of Giants Photo via Shutterstock SOUNSoundHound AI Inc$12.9513.8%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum93.68GrowthN/AQualityN/AValue7.30Price TrendShortMediumLongOverviewAAPLApple Inc$209.72-0.11%GOOGLAlphabet Inc$174.14-1.50%METAMeta Platforms Inc$719.560.17%MSFTMicrosoft Corp$495.48-0.45%NVDANVIDIA Corp$159.410.74%Market News and Data brought to you by Benzinga APIs

What's Going On With SoundHound AI (SOUN) Stock? - SoundHound AI (NASDAQ:SOUN)

Shares of SoundHound AI Inc SOUN are trading higher Wednesday afternoon. The stock is up 15.5% over the trailing week, contributing to an approximate 30% gain for the second quarter. This surge is supported by optimistic analyst coverage, signaling potential for further growth. What To Know: In recent weeks, financial analysts have shown confidence in the voice AI company. Piper Sandler initiated coverage with a $12 price target, while Wedbush and HC Wainwright reiterated their positive stances, setting price targets of $15 and $18, respectively. This positive sentiment follows the company's first-quarter report, which showcased a notable 151% year-over-year revenue growth. For the full year, SoundHound anticipates revenue to be between $157 million and $177 million. The broader adoption of artificial intelligence in the restaurant industry is also buoying investor interest. As major chains like Dine Brands, McDonald's and Yum Brands integrate AI for menu recommendations and operational efficiency, SoundHound's technology for conversational AI has been seen as a key catalyst for the stock in 2025. Investors are now looking ahead to the company's second-quarter results, expected in early August. Analysts are forecasting quarterly revenue of $32.88 million. Price Action: According to data from Benzinga Pro, SOUN is trading higher by 7.97% to $11.31 Wednesday afternoon. The stock has a 52-week high of $24.98 and a 52-week low of $3.86. Read Also: Quantum, AI, Nuclear: Three Frontiers, One Launchpad Powered By Defiance ETFs How To Buy SOUN Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in SoundHound AI's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock SOUNSoundHound AI Inc$11.237.20%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum93.30GrowthNot AvailableQualityNot AvailableValue7.56Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

SoundHoud AI Stock Jumps Amid AI Push, But This Technical Indicator Signals Slowdown And Reversal In Rally - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SoundHound AI (NASDAQ:SOUN)

The conversational artificial intelligence (AI) company SoundHound AI Inc. SOUN surged over 11% on Tuesday after having the second-highest volume day of 2025. With several positive technical indicators, this particular momentum signaled that the stock may be overbought. What Happened: As the demand for AI is skyrocketing in every sector, the voice AI company SoundHound had its second-highest day of trading volume at 118,340,200 on Tuesday, July 6, with Feb. 14 being the highest at 177,289,100. Traders remained positive on the stock as Ryan Collins, the Florida Director for StepStone Group, reaffirmed his prediction of a "break through" beyond $12.6 apiece. The stock rose 11.69% to end at 12.71% on Tuesday. Collins also cautioned that the stock may undergo some pressure around $14 apiece. Meanwhile, online financial commentator, Tiger Line Trading predicted a surge to $15 per share of the stock. As per the Benzinga Pro data, SoundHound AI stock was above its short and long-term moving averages, signaling a bullish stock trend. Its MACD line was also positive and above its signal line, suggesting a potential bullish trend, with its 12-week exponential moving average being above its 26-week EMA. However, its relative strength index at 71.58 meant that the stock was in the overbought zone, hinting at a potential slowdown or reversal in the near term. See Also: Warren Buffett's Quiet Dividend Play: 9 High-Yield Stocks Held By A Berkshire Subsidiary Why It Matters: Fundamentally, during its first quarter earnings call, CFO Nitesh Sharan reaffirmed the company's 2025 revenue guidance of $157 to $177 million, despite a $2 million adverse impact from a customer's change of control. He also highlighted the increasing diversification of revenue streams across verticals, including automotive, restaurants, financial services, and healthcare. Looking ahead, SoundHound emphasized its record pipeline, fueled by increasing demand for its advanced voice AI solutions and the growing recognition of its technological differentiation. "We have a strong pipeline of new OEMs, and they, along with the restaurants, are very excited about our voice commerce solutions," he said. Price Action: SOUN shares were 2.28% higher at $13 apiece in premarket on Wednesday. However, it was lower by 36.95% on a year-to-date basis and up 207.00% over a year. Benzinga Edge Stock Rankings shows that SOUN had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid at the 95.85th percentile, whereas its value ranking was poor at the 6.58th percentile; the details of all the metrics are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were slightly higher in premarket on Wednesday. The SPY was up 0.042% at $620.60, while the QQQ advanced 0.016% to $552.43, according to Benzinga Pro data. Read Next: Trump's Big Beautiful Bill Slashes Solar Incentives -- Cathie Wood's Ark Says Nuclear May Now Be Cheapest Option: OKLO, SMR, LTBR And Other Stocks In Focus Image Via Shutterstock QQQInvesco QQQ Trust, Series 1$553.140.14%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum61.72Price TrendShortMediumLongOverviewSOUNSoundHound AI Inc$13.002.28%SPYSPDR S&P 500$621.340.16%Market News and Data brought to you by Benzinga APIs

Is SoundHound Stock a Buy Now? | The Motley Fool

Artificial intelligence (AI) stocks are shaping up to be the biggest stocks of the decade. Stocks like Nvidia and Palantir have generated huge returns and created massive fortunes already. First, the company is growing incredibly fast. As of its most recent quarter (for the three months ending on March 31, 2025), SoundHound reported eye-popping revenue growth of 151%, with quarterly revenue rising from $11.6 million to $29.1 million. The automotive and restaurant sectors remain key drivers of SoundHound's growth, and these were highlighted during its earnings release: Finally, the analyst community remains bullish on SoundHound stock. According to data compiled by Yahoo! Finance, five of the eight sell-side analysts covering SoundHound stock rate it as a "strong buy" or "buy." None rate it as a sell. The average analyst price target is $11.81, implying 19% upside as of this writing. Now, let's examine the bear case and risks for SoundHound stock. First, one must remember that SoundHound is a very young and very small company. Its total revenue over the last 12 months amounted to $102 million. For comparison, Meta Platforms generates five times as much revenue every day. Accordingly, SoundHound isn't yet profitable, and, crucially, it doesn't generate positive free cash flow. Over the last 12 months, SoundHound reported a net loss of $188 million and free cash flow of negative $107 million. However, these risks are somewhat offset by the fact that SoundHound has a solid balance sheet, with more than $245 million in cash and only $5 million in debt. In addition to its lack of profits, the company's competitive situation raises other concerns. The AI ecosystem is extremely dynamic, with deep-pocketed companies eagerly jumping into new businesses. It's quite possible that big tech giants like Microsoft, Amazon, Alphabet, Meta, or others could become fierce competitors for SoundHound. On the other hand, any of the aforementioned companies could also gobble up SoundHound -- its current market cap of less than $4 billion is but a rounding error for the tech giants. Finally, SoundHound's deep penetration of the automotive and hospitality sectors is a double-edged sword. With much of the company's revenue coming from those industries, any downturns within those sectors could put a damper on SoundHound's rapid growth, leaving investors out in the cold. SoundHound is a young company in a dynamic and fast-changing industry. However, it's not a stock for every investor. Its high valuation -- at the time of this writing its price-to-sales (P/S) ratio is 36 -- puts it well out of reach for value-minded investors. However, for growth-seeking investors who are looking for a mid-cap stock with plenty of upside, SoundHound is worth considering. A dollar-cost averaging approach, combined with a buy-and-hold mindset, could pay off as the voice AI market continues to grow in the years to come.

SoundHound AI Stock Has Plummeted by 53%. This Move by Nvidia Is a Key Reason Why. | The Motley Fool

SoundHound AI (SOUN -1.11%) is a specialist in conversational artificial intelligence (AI) software, which understands voice prompts and responds in kind. Its customers include some of the world's biggest brands, and it even attracted an investment from Nvidia (NVDA 1.28%). Nvidia supplies the world's most powerful data center chips for AI development, and booming sales have driven its market capitalization from $360 billion to $3.83 trillion over the last two and a half years alone. Therefore, it's no surprise SoundHound AI stock soared higher when Nvidia revealed it bought a position in early 2024, and shares went on to hit an all-time high of around $24 in late 2024. But Nvidia stunned investors when it released its 13-F filing with the Securities and Exchange Commission (SEC) on Feb. 14 this year. Its updated list of investments showed that SoundHound AI was no longer in the portfolio, suggesting the chip giant sold its entire stake toward the end of 2024. SoundHound stock has now lost 53% of its peak value, and it's struggling to regain momentum. Could the decline be a long-term buying opportunity, or is Nvidia's exit a sign to steer clear? Popular AI chatbots like OpenAI's ChatGPT are incredibly powerful, but they aren't always accessible. For example, people might not have the capacity to open an app or manually enter prompts when they are working or even driving, but SoundHound's conversational AI software was designed for those very situations, and adoption is soaring among some of the world's biggest brands. They include quick-service restaurant chains like Chipotle, Krispy Kreme, Papa John's, and Jersey Mike's. They use SoundHound products like Employee Assist, which workers can speak to whenever they need help with menu items, systems, and store policies. The chains also use SoundHound to take customers' orders autonomously in-store, over the phone, and in the drive-thru, which frees up staff to complete those orders more quickly. Automotive giants like Hyundai, Honda, and Kia are integrating SoundHound into their new cars, where it can help drivers understand different features and even provide them with information on things like the weather or sports scores on command. SoundHound also launched a platform called Voice Commerce this year, which includes products like In-Car Ordering. Users can ask for restaurant recommendations while they are driving, place an order, and get directions to pick it up -- all powered by their voice. SoundHound acquired another conversational AI specialist called Amelia last year, which is helping the company expand its product portfolio. The new Amelia 7.0 platform allows businesses to create custom conversational AI agents to handle queries from their customers and employees. These agents can be trained to answer questions on specific products or topics, and they can also be instructed to avoid sensitive areas like politics. SoundHound's revenue came in at $29.1 million during the first quarter of 2025 (ended March 31), which represented eye-popping growth of 151% compared to the year-ago period. The strong result gave management the confidence to reaffirm its full-year guidance, which suggests the company could generate $167 million in revenue during 2025 (at the midpoint of the forecasted range). That would be an increase of 97% from its 2024 result. SoundHound is also sitting on an enormous order backlog. Management is no longer updating investors on the official number, but Chief Financial Officer Nitesh Sharan said it has grown even further since the end of 2024, when it was a whopping $1.2 billion. The company expects to convert the backlog into revenue over the next six years, so it's a good indication that more top-line growth is on the horizon. But SoundHound's bottom line remains a concern. The company actually generated a profit of $129.9 million during the first quarter on a GAAP (generally accepted accounting principles) basis, but only because of a one-off benefit of $176 million from one of its acquisitions. On a non-GAAP basis, which excludes one-off and non-cash expenses, SoundHound still lost $22.3 million, which was up 10% year over year. The first-quarter loss followed a non-GAAP net loss of $69.1 million in 2024, and since the company only has $246 million in cash and equivalents on hand, it can't afford to keep burning money at the current pace. If it doesn't turn profitable soon, a capital raise might be required in the future, which would dilute existing shareholders and dent their potential returns. Nvidia management never shares the reasons for any changes it makes to its investment portfolio, but SoundHound's sky-high valuation is definitely something investors should consider before buying the stock. It's trading at a price-to-sales (P/S) ratio of 39.3 as of this writing, which is a whopping 50% premium to Nvidia's P/S ratio of 26.1. Nvidia is a high-quality company. It has a track record of success that spans decades, and it generated $130.5 billion in total revenue during its last fiscal year alone, along with $72.9 billion in net income. Considering SoundHound's business is still at a very early stage and is losing significant amounts of money, its premium valuation is very hard to justify. No matter what Nvidia's official reasons were for selling SoundHound stock, its sharp decline in the aftermath hasn't made it an attractive buy, so I think investors should steer clear for now.

Down Over 50%, Should You Buy the Dip on SoundHound AI Stock? | The Motley Fool

Shareholders of SoundHound AI (SOUN -1.11%) were riding high in 2024 after the stock posted an incredible 836% gain for the year. But 2025 is a different story. SoundHound stock is down 55% from the all-time high it reached late last year. The rise and fall of SoundHound stock has a common denominator: Nvidia. In early 2024, Nvidia revealed that it had recently invested in some promising artificial intelligence (AI) stocks, including SoundHound AI. Shares skyrocketed because investors believed this validated the small company's technology. In early 2025, the opposite happened when Nvidia revealed that it had sold its stake in the company. Buying or selling a stock based on another investor's actions -- in this case, Nvidia's -- can be a bad idea. It's important for investors to have their own investment thesis, or a structured argument for why the stock will go up over the long term. With this in mind, I want to explore the investment thesis for SoundHound AI stock today. SoundHound AI offers voice-assistant technology to automotive companies, restaurants, and other industries. It's considered a first-mover in the space, leaning on two decades of experience. But its revenue growth wasn't catalyzed until the relatively recent AI revolution. Now, its revenue is skyrocketing with full-year revenue growth of 85% in 2024 and stunning 151% year-over-year growth in the first quarter of 2025. Bullish investors are salivating over those numbers, particularly because of the total addressable market. According to management, the company has a $140 billion market opportunity. For perspective, it commands far less than 1% of its theoretical market as of this writing. In other words, SoundHound is growing at a head-turning rate, and the runway ahead of it appears to be massive. This combination could lead to many years of growth -- a huge factor for stocks that perform well in the long run -- which is why investors are excited about the company. They're also excited by the prospects of SoundHound's profits. Management believes it will achieve profitability by the end of this year based on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That's a big step forward when thinking about long-term viability for any business. To be clear, SoundHound isn't profitable yet -- it has a massive trailing 12-month net loss of $188 million. But with $246 million in cash and no debt, the company is on solid financial footing as it moves toward breakeven. Put simply, SoundHound stock could be a winning investment because it's a fast-growing business in a massive industry, and its financials are trending in the right direction. So SoundHound believes its market opportunity is over $140 billion. Management also believes the company has a competitive advantage in the space because it's known as "white-label." Whereas bigger companies might have similar voice-technology solutions on the market, these companies usually like to slap their branding on it. In contrast, SoundHound works behind the scenes, keeping its customers' branding front and center. To play the devil's advocate, I'm not sure this is actually a competitive advantage for SoundHound. Auto manufacturers, for example, have no problem putting other branding in their vehicles, including SiriusXM satellite radio and JBL speakers. SoundHound also boasts a big head start in the AI voice-assistant space. But massive progress in AI could be cutting into its lead. On the Q1 earnings call, management admitted that the boom in generative AI applications has increased competition in recent years. Moreover, competition will likely be coming from tech giants in the next few years. SoundHound's technology plays into the nascent agentic AI trend -- AI that can make more autonomous decisions on a user's behalf. All of the big players are working to address this holistically, and a head-on collision with SoundHound seems likely. For example, Alphabet is a leading AI company, and its Android Auto product is getting some attention from auto manufacturers such as Ford and General Motors. The takeaway isn't that SoundHound stock is doomed. On the contrary, the business is doing quite well. The takeaway is that investors should remember the path to SoundHound's $140 billion market opportunity won't be free from competition. If anything, competition will only intensify. For investors who believe SoundHound has what it takes to challenge the biggest tech players in the world, the stock may be a cautious buy in light of the 55% plunge from its peak. But personally, I'd wait on the sidelines to see how competition develops over the next year. I'm not worried about missing the train, so to speak. If the market opportunity is truly as big as SoundHound believes it is, this story still has a long time to play out, allowing patient investors to evaluate the company's competitive position.

Should You Buy This AI Stock That Soared 800% Last Year and Has a $140 Billion Total Addressable Market? | The Motley Fool

Last year was a big one for artificial intelligence (AI) stocks, with companies in the sector leading all three major benchmarks to gains. Though the momentum halted temporarily earlier this year, as investors worried about the impact of import tariffs on the economy, this positive energy has returned. Investors are optimistic that trade talks will result in lower-than-expected tariffs, limiting the negative effects on companies, and that has buoyed interest in growth players, including AI stocks. Some AI stocks, though, have yet to feel the rebound. Considering the long-term AI growth story hasn't changed, these players may offer you bargain buying opportunities today. Let's consider one in particular. This AI stock surged more than 800% in 2024 but dropped 45% in the first half of this year. Meanwhile, it's a specialist in its field, one with a total addressable market of more than $140 billion. Is this player a buy right now? The AI stock I'm talking about is SoundHound AI (SOUN -1.11%), a company with expertise in voice AI, reinforced by more than 190 granted patents. Though other companies, even big players such as Amazon or Microsoft, are involved in the field, SoundHound stands out thanks to its speech-to-meaning technology. The company translates speech directly to meaning, bypassing the common step of translating speech to text first, therefore gaining in speed and quality. Customers clearly like SoundHound's offerings, as revenue has taken off, and the company has signed deals across industries. This is a key point because, in its earlier days, SoundHound primarily served the automobile industry. This strength in fields such as healthcare, retail, travel, and more, as well as the fact that no customer represents more than 10% of revenue, greatly reduces SoundHound's risk. That's because if one customer or industry cuts spending, others may compensate. SoundHound's revenue in the recent quarter advanced 151% to about $29 million, which is great. But what's even better is that the company still has plenty of room for growth, considering its current revenue level and the total addressable market of $140 billion, which spans 14 different industries. And the company has three ways to generate revenue: through royalties on its products, subscriptions for services, and taking additional revenue from the use of its products and services. Of course, despite SoundHound's expertise in the field, the company still faces the risk of major rivals, such as those mentioned above, gaining market share due to their immense resources. That's what makes SoundHound a stock that carries some risk right now, and even though the stock has slipped this year, the decline looks small compared to the gain posted last year. These factors could limit SoundHound's growth in the near term. Still, the company has seen growth accelerate in recent quarters, from 89% in the third quarter of last year to 101% in the fourth quarter and even higher in the most recent period. Further, as mentioned above, SoundHound may still be in its early stages of growth. So, what does this mean for you as an investor? Should you buy SoundHound now on the dip? The answer depends on your investment strategy. If you're a cautious investor, you're probably better off buying a larger, well-established player, such as Amazon or Microsoft, that may benefit from voice AI but also from broader, profitable businesses. Over time, they've proven their earnings and stock performance strengths. If you're an aggressive investor, though, SoundHound looks like a fantastic AI buy right now. The stock has slipped from its high, offering you a lower entry point. Revenue has clearly accelerated in recent quarters, and the company has successfully broadened its customer base across industries. On top of that, I like that SoundHound is financially healthy, with no debt and $246 million in cash. All this makes it a great AI stock to get in on right now and hang on to as its growth story develops.

Why Is Everyone Talking About SoundHound AI Stock? | The Motley Fool

This up-and-coming AI company is well positioned to grow rapidly in the coming years. Artificial intelligence (AI) is one of the most significant trends of our generation, thanks to its transformative effects that will impact almost every aspect of our lives. Think of it as revolutionary as electricity and the internet. Unsurprisingly, investors have been doubling down on companies well-positioned to leverage this trend, such as Nvidia, Palantir, and Tesla. But AI will bring opportunities not only to these big tech giants but also to smaller, up-and-coming future tech giants. SoundHound AI (SOUN -1.11%) is one of them. Initially founded in 2005 as a music recognition company, SoundHound has evolved into a broader AI voice platform company with proprietary technology that understands and responds to human speech in real time. The company's value proposition, though complex to achieve, is relatively straightforward. It provides a voice platform that's embedded directly into products (such as cars) without requiring the use of cloud-based assistants like Alexa, Siri, or Google Assistant. With the help of its software, users can use voice as an interface to interact with smart devices, cars, or other Internet of Things (IoT) devices. Leveraging its technology in voice recognition and natural language understanding, the company has built a proprietary offering that's independent of consumer tech companies like Microsoft and Alphabet. According to the company, its technology surpasses that of competitors in terms of speed, accuracy, and understanding of complex language. With its technology stack, it allows for the provision of best-in-class service while giving customers complete control over their brand, users, and data. Additionally, SoundHound has leveraged the latest AI technologies, including generative AI, to develop its voice AI agent. The AI agent can function on smartphones, SMS, kiosks, mobile apps, and web chats, helping customers tackle a wide range of customer service activities across multiple industries. Currently, the company's main customers are automotive and hospitality businesses, quick-service restaurants, and call centers. In return for providing its voice platform, SoundHound generates revenue primarily through three channels. First, it receives royalties on products -- cars, smart TVs, and IoT devices -- that incorporate its voice platform. Here, customers pay based on volume, usage, per device, or user. Next, it generates software-as-a-service revenue from services such as food ordering and customer service. Here, customers pay on a monthly contract or a usage basis. The last pillar of SoundHound's revenue centers around advertising and commerce, where it earns a commission by enabling sales of customer products and services. Although AI voice platform adoption may still be in its early stages, customers appreciate the solutions SoundHound provides, which explains its solid growth rate. In the first quarter of 2025, revenue grew 151% to $29.1 million. Better still, there are good reasons to expect the company can sustain its high growth trajectory for a while. According to the company, it has a total addressable market (TAM) of $140 billion across various industries. At an annualized revenue rate of around $120 million, it has just scratched the surface. Let's consider a few of the most apparent areas, starting with the automotive industry. SoundHound has just achieved 3%-5% penetration of its existing customers' 25 million unit sales. That's 28% of global light vehicle sales of 88 million in 2024 -- a vehicle category that may reach 95 million units in 2028. The company can increase its penetration even further by growing with existing customers or adding new client brands. To this end, the tech company's existing experience working with automakers, its leading technology, as well as its independent platform (an alternative to Alexa, Siri, or Google Assistant) are some advantages it can leverage to grow its market share. The other obvious growth avenue is its subscription service in the restaurant industry. Increasing labor shortages, rising wages, and customer demand for fast service make voice automation an attractive tool for restaurant operators. Just in the U.S. alone, SoundHound has a revenue opportunity of $1 billion and a TAM of 0.8 million restaurants. Chipotle, Five Guys, and Casey's are a few examples of its growing list of customers. It is also worth noting that the SoundHound voice AI platform offers solutions in 25 languages (which can expand further over time), allowing it to provide its services to customers globally. In the first quarter of 2025 alone, the company announced deals with customers in Latin America, Europe, and Japan and joined forces with Tencent Intelligent Mobility. The sky seems to be the limit. SoundHound AI is no longer just a niche voice assistant company -- it's evolving into a mission-critical AI platform for some of the world's largest industries. Whether it's powering intelligent voice assistants in cars, automating food orders at restaurants, or handling customer service calls with conversational AI agents, SoundHound is betting on voice recognition to be the next central interface -- and it's building a proprietary infrastructure to support its expansion. Still, investors should be mindful that the road ahead will be rocky, especially with the adoption of new technologies like AI voice platforms. It's best to monitor the company closely to build your understanding and conviction.

Can SoundHound AI Stock Bounce Back After Falling 46% This Year? | The Motley Fool

Voice-focused artificial intelligence (AI) stock SoundHound AI (SOUN -2.33%) has crashed close to 46% this year. While it has still more than doubled in value from where it was a year ago, the excitement around this once-hot AI stock has cooled off significantly. SoundHound AI is growing at a fast rate and it still has loads of potential in AI, especially as businesses look to add efficiency and automate their operations through its smart ordering and dynamic drive-thrus. With a market cap of around $4 billion, this could make for a compelling option for AI investors to consider for their portfolios. What does SoundHound AI need to do for its stock to excite investors again, and is a rally likely to happen anytime soon? The biggest problem for SoundHound is that although it's growing its revenue, it may not necessarily have a path to profitability. The company did turn a profit in its most recent quarter (which ended on March 31), but it was due to an adjustment in its contingent liabilities. Without the favorable change in fair value, the company would have incurred an operating loss of $48 million -- an increase of 68% from the $28.5 million operating loss it incurred a year earlier. The company's year-over-year revenue growth rate of 151% during the quarter looked impressive as sales topped $29 million, but it was largely due to acquisitions. And while that can be a way to quickly boost sales, investors know that can also add inefficiency along the way and not necessarily result in a more sustainable business model. It can take time to eliminate redundant costs and take advantage of any cost synergies. For SoundHound to win over investors, it's likely going to need to show that it can scale its operations in a much more sustainable way; one-off profits that aren't going to be repeatable will do little to move the stock. In August of last year, SoundHound AI acquired Amelia, an AI software company that expanded its reach into more industries. Management said that combined, the businesses had "nearly 200 marquee customers." Prior to that, a big concern around SoundHound was its lack of diversification. In 2023, two customers accounted for 62% of its revenue. Meanwhile, in its most recent quarter, no customer accounted for more than 10% of its top line. But having more customers doesn't mean that they're all big customers, or that they're placing big orders with SoundHound. This is why the company's upcoming results after August can be much more useful for investors in assessing just how well the business is growing. Right now, it's still getting a boost from its big acquisition of Amelia. Once that isn't the case, it'll be clearer how well SoundHound is really doing, both on its top and bottom lines. SoundHound faces a lot of competition in AI as there are many other companies that offer comparable solutions. And that risk is reflected in the stock's falling valuation this year. If there's a slowdown in AI-related spending, possibly due to recession or other economic fears, that's only going to make it even more imperative for SoundHound to have strong financials to be able to calm the nerves of growth investors. This is a highly speculative stock to own, and it's one that comes with significant risks. If SoundHound is able to grow and show that it has a path to profitability, there could be considerable upside for the stock. But if it's unable to do that, I wouldn't be surprised to see the stock continue to fall further in the weeks and months ahead. A lot would have to go right for SoundHound to show that it's a good AI stock to invest in right now, which is why I'm not optimistic about a rally happening anytime soon. The safest option may be to take a wait-and-see approach with the stock for the time being.

How SoundHound AI Is Quietly Building a Global AI Empire

SoundHound AI (SOUN -1.11%) might not enjoy the same hype as Nvidia or Palantir in the stock market, but this mid-cap voice AI company is quietly expanding its footprint across the globe. In doing so, it may be building something far bigger than most investors currently realize. While SoundHound AI is best known for powering restaurant drive-thrus and car infotainment systems, there's far more to its growth story. From Asia to Latin America, it's tapping into one of the most significant, overlooked opportunities in AI: the shift to voice as the primary human-machine interface. A multilingual AI voice platform Among the most powerful yet underrated assets SoundHound AI has are its integrated and proprietary solutions for more than 25 languages. That's more than just a technical feat. In global markets, offering a voice AI interface that functions properly in native languages is a must-have. English-only won't cut it. As companies continue to integrate AI into new physical systems, from vehicles to smart appliances, the ability to manage local language and cultural nuances will become a significant competitive advantage. That's precisely why SoundHound has been winning new contracts and partnerships. In the first quarter of 2025, it partnered with Chinese tech giant Tencent to expand its footprint in the global auto market, building on its existing relationships in the industry with manufacturers such as Hyundai, Kia, Stellantis, and Samsung's Harman division. SoundHound AI also renewed contracts with two Japanese multinational companies that offer services across numerous industries, and it signed a deal to provide a major Latin American resort developer with an AI agent concierge. These partnerships point to something bigger: Demand for AI-powered voice interfaces isn't limited to the U.S. It's a global trend, and SoundHound AI is emerging as a leader in the space. Enormous opportunities for expansion in core industries SoundHound AI's most significant and obvious opportunity lies in the global automotive industry, and it's not hard to see why. In 2024, new light vehicle sales reached 88 million units globally, and this number is expected to increase to 95 million by 2028. Automakers are racing to make vehicles more connected, voice-enabled, and intelligent -- and SoundHound AI is right at the center of that transition. According to the company, its voice AI is in just 3% to 5% of the vehicles sold by its existing customers. In other words, the company has already landed some big clients -- it now needs to grow its relationships with each of them and to sign new deals with other OEMs globally. There are several reasons why SoundHound AI is in the driver's seat when it comes to growing its automotive business. Unlike rival applications like Siri, Alexa, or Google Assistant, SoundHound offers a fully embedded voice AI that runs directly on each vehicle's local hardware -- no cloud connection or external ecosystem is required. That matters a lot to automakers, as it allows them to maintain control over user data and retain their branding rather than handing over the user experience to Apple, Amazon, and Alphabet. This independent, customizable platform is a significant selling point in an era when brands want to control their in-car experience from end to end. Another obvious area for global growth is the restaurant industry. In the U.S., SoundHound is already working with prominent chains such as White Castle, Chipotle, Jersey Mike's, and others to deploy its voice AI to handle customer interactions across phone ordering, kiosks, and drive-thrus. But the bigger prize may be overseas. In the U.S., the company views its total addressable market in the space at around 800,000 restaurants, but globally, the number is far higher. Once it has fully proven the value of its product in the U.S., expansion into international franchises will be the logical next step. More industries, more monetization While automotive and restaurants are SoundHound's most established verticals today, the company's long-term opportunity goes far beyond these two industries. As voice interfaces become more capable, reliable, and natural, new use cases are emerging, opening the door to broader monetization. The company has already expanded into areas like: Each of these verticals offers a distinct monetization model -- from usage-based software-as-a-service contracts to per-device royalties to potential revenue sharing in commerce and transactions. As more industries adopt voice AI, SoundHound's diversified revenue streams could help it scale efficiently. What it means for investors SoundHound AI may still be at a fairly early stage of its growth, but it's quietly assembling the building blocks of a global voice AI empire. If voice is indeed going to be the next major digital interface -- and there are plenty of signs that it will be -- SoundHound AI is a company that investors will want to keep a close eye on.

Why SoundHound AI Stock Jumped 17% Tuesday Morning | The Motley Fool

Did SoundHound AI's stock big move leave you scratching your head on Tuesday? Here's what sparked the action. Shares of SoundHound AI (SOUN 11.99%) had a field day on Tuesday. The stock gained as much as 17.9%, peaking at 10:10 a.m. ET, before settling down to a 14% gain as of 3 p.m. ET. This does not appear to be a meme stock push, as most sources report very limited SoundHound AI discussion in the usual meme-oriented investing channels. Instead, Tuesday's big jump stemmed from a sudden boom of investor interest in so-called agentic artificial intelligence (AI) solutions. SoundHound AI's trading volume tripled against its three-month average. The buzz around agentic AI rose overnight due to a $3.3 billion acquisition in the Indian market. As a result, many investors were reminded of the massive gains a company like SoundHound AI can see over time, as several industries lean into the agentic AI future. As a reminder, agentic AI involves automated systems taking several steps to draw up an overall strategy for solving complex problems. That blueprint is then turned over to one or more specialized AI tools that can measure their success against the agent-managed overview. This process is more self-sufficient than the single-task AI tools you've seen emerge in recent years, paving the way to a more autonomous AI system. SoundHound AI's Amelia and Houndify platforms come with several agentic workflows, driven by the company's signature voice commands. It's nice to see SoundHound AI's stock rising thanks to widespread discussion of a solid AI trend. However, the stock still looks overpriced, as its plethora of long-term service contracts will take years to generate significant revenues. I hesitate to recommend SoundHound AI's stock at these lofty valuation ratios. You'll probably do better in the long run if you wait for this overheated stock to cool down a bit before you pounce on that tempting "buy" button.