SoundHound AI (SOUN) has been in the spotlight in 2025, offering advanced voice recognition and conversational AI solutions. While the stock has seen its share of volatility, there are compelling reasons why long-term investors might want to keep a close eye on SOUN. Here are three key reasons SoundHound AI could emerge as a winner.
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1. Strong Revenue Growth Ahead
In Q3 2025, SoundHound reported revenue of $42 million, up 68% year-over-year, driven by strong enterprise adoption and new customer wins across automotive, healthcare, financial services, and consumer sectors. The result also beat analyst expectations of $40.5 million.
The company also raised its full-year guidance to $165–$180 million, up from $160–$178 million. While SoundHound has not yet turned profitable, its strong revenue growth and upwardly revised guidance indicate significant long-term potential. The revision reflects growing interest in SoundHound’s products and an expanding lineup of solutions.
2. Wall Street Support
Wall Street analysts’ moderately positive outlook on SOUN provides another reason for investors to be optimistic about the stock.
H.C. Wainwright’s analyst Scott Buck has the highest price target for SOUN at $26, implying an upside of over 120% from the current level. Buck believes the company is moving toward profitability, with improving margins and a clear path to positive EBITDA. He expects that as more industries adopt SoundHound’s voice AI technology, the company will scale operations, boost revenue, and steadily approach profitability.
Meanwhile, five-star analyst Gil Luria of D.A. Davidson remains bullish on SoundHound, highlighting the company’s large addressable market and consistent execution of its growth strategy. Luria acknowledged that big tech remains competitive but noted that SoundHound stands out thanks to stronger platform performance and higher benchmarks.
3. The Power of Data
Another reason to bet on SOUN stock is the company’s data power. One of the company’s most valuable assets is its data. With over 1 billion voice queries processed each month, SoundHound keeps improving its Polaris AI model. Earlier this year, management noted that its voice recognition slightly outperformed competitors’ models.
In the AI world, data is key. With two decades of real-world user interactions, SoundHound could be reaching a turning point. This strong data foundation may drive long-term growth, making SOUN stock an attractive play for long-term investors.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with two Buys and four Holds assigned in the last three months. The average SoundHound stock price target is $17.20, suggesting a potential upside of almost 50% from the current level.
