Shares of SoundHound AI (SOUN) have been in the spotlight, climbing over 30% in the past 30 days. While the recent surge grabbed attention, investors are now asking whether the AI voice stock still has room to grow. Here are three key reasons why SOUN could continue rising despite the recent rally.
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For context, SoundHound AI specializes in voice recognition and natural language processing, offering AI-driven solutions across industries.
1. SoundHound Shines with Strong Q2 Results
SoundHound reported its Q2 earnings last month, posting record revenue of $42.7 million, up 217% from last year. While the company recorded an adjusted net loss of $0.03 per share, this was better than analysts’ expected loss of $0.09 and an improvement from last year’s $0.04 loss.
Broadly, the company is seeing strong demand for its voice AI solutions and an expanding product lineup. While the company isn’t yet profitable, rapid revenue growth and a positive outlook suggest solid long-term potential. On the flip side, strong competition could pressure the stock in the near term, making SOUN a high-risk, high-reward investment.
Looking ahead, the company raised its full-year revenue forecast to $160–$178 million, up from its earlier estimate of $157–$177 million. Analysts are currently expecting $161.2 million.
2. SOUN Gets Wall Street Support
Turning to Wall Street, several analysts reaffirmed Buy on SOUN after Q2, signaling confidence in its growth potential.
For example, Northland Securities’ four-star-rated analyst Michael Latimore upgraded SOUN from Hold to Buy, raising his price target from $8 to $14.5, citing a return to organic growth and a strong pipeline. He expects 36% growth in H2 and 52% in Q4, implying a 7% upside.
Meanwhile, five-star analyst Glenn G. Mattson at Ladenburg Thalmann upgraded SOUN to Buy and raised his price target from $9 to $16.
3. SOUN Pullback May Offer a Buying Opportunity
Despite the recent surge, SOUN stock is still down about 28% year-to-date. As a young voice AI company, SoundHound’s shares can swing sharply with investor sentiment.
While this volatility may be concerning in the short term, it can also create attractive buying opportunities for long-term investors.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15.0, suggesting a potential upside of 5.2% from the current level.
