SoundHound AI (SOUN) has been one of the standout names in the AI space this year, with its stock seeing major volatility. Notably, SOUN stock has surged 90% over the past six months, leaving many price targets trailing below the current trading level. As the company prepares to announce its Q3 earnings this week, investors are worried whether the stock’s rally has already run its course. Here’s why it might still be a good time to bet on the company’s next growth phase.
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SoundHound AI focuses on voice recognition and natural language processing, delivering AI-driven solutions across multiple industries.
Why SoundHound AI Stock Still Has Room to Run
It might not be too late to bet on SoundHound AI’s next big move. The company holds one of the most valuable assets in AI — the data. With over 1 billion voice queries processed every month, SoundHound continuously refines and strengthens its Polaris AI model. Earlier this year, management even noted that its voice recognition accuracy slightly outperformed models from competitors.
In the AI race, data is everything. Therefore, with two decades of real-world user interactions under its belt, SoundHound may be hitting an inflection point. Looking ahead, this could power lasting growth and make SOUN stock a strong long-term play.
For context, SoundHound AI’s Polaris is a key part of its voice technology. It is a multilingual, multimodal AI model that supports nearly 30 languages.
Additionally, rising demand for SoundHound’s voice AI solutions supports its strong long-term growth potential. Looking ahead, the company expects full-year revenue between $160 million and $178 million, slightly above analysts’ estimate of $161.2 million.
What Analysts Expect from SoundHound’s Q3 Earnings
Wall Street analysts expect SoundHound to report a loss of $0.09 per share in Q3 as compared to $0.06 in the same quarter a year ago. Meanwhile, revenue is projected to climb over 60% year over year to $40.5 million.
Wainwright Stays Bullish on SOUN
Last month, four-star-rated analyst Scott Buck of H.C. Wainwright raised his price target from $18 to a Street-high of $26. He believes SOUN shares could climb more than 40% from current levels, even if the stock seems expensive right now.
Buck expects SoundHound’s real growth story to unfold as more industries adopt its voice AI technology, helping the company scale, increase revenue, and move toward profitability. He also noted that the upcoming Q3 earnings report could be a key catalyst for further upside.
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 $16.67, suggesting a potential downside of 5.4% from the current level.
