SoundHound AI (SOUN) stock has surged sharply in recent weeks, driven by investor excitement around voice AI technology. Over the last 5 trading days, the stock has jumped over 22%. The recent rally has left some investors questioning the stock’s remaining upside potential. While Wall Street has yet to react to the latest surge, analysts overall maintain a moderately bullish outlook on SOUN.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
SOUN Stock Beats Wall Street Forecasts
With its recent rally, SOUN has surpassed Wall Street’s average price target of $11.31, suggesting potential downside from the current trading level of $12.90.
SOUN has soared 55% over the past three months, far outpacing the S&P 500’s 14% gain during the same period. Despite this strong momentum, the stock still trades about 49% below its 52-week high of $24.98.
What Lies Ahead?
SoundHound’s recent stock rally shows rising investor confidence in its AI platform, expansion into new markets, and early lead in voice-based services. The company’s strong technology, growing customer base, and solid financials, including $246 million in cash and no debt, support a positive long-term outlook.
However, the stock’s high valuation and ongoing losses pose risks. While high-growth AI stocks often carry high valuations, SoundHound must show real progress toward profitability to justify its current price. Without that, any slowdown in growth or delay in margin improvement could expose the stock to downside risk.
Furthermore, with 2025 profit estimates unchanged and profitability not expected until late next year, much of the near-term upside may already be priced into the stock.
Is SOUN a Good Stock to Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with four Buys and four Holds assigned in the last three months. The average SoundHound stock price target is $11.31, suggesting a potential downside of 12.3% from the current level.
