SoundHound AI (SOUN) stock remains one of the most closely watched AI plays among retail investors after the company’s latest earnings report. While SOUN stock has been volatile this year, analysts remain optimistic about the company’s long-term AI growth potential. Despite concerns around valuation and profitability, Wall Street analysts still see roughly 60% upside for SOUN stock from current levels.
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For context, SoundHound AI focuses on voice recognition and natural language processing, providing AI-powered solutions for multiple industries.
SoundHound AI’s Q1 Performance
Earlier this month, SoundHound AI reported Q1 revenue of $44.2 million, up 52% year over year and ahead of Wall Street expectations. However, investors remain concerned that SoundHound’s growth is slowing. While 52% revenue growth is still impressive, it is much lower than the 151% growth the company posted in Q1 2025.
Profitability also remains a key concern. The company reported a loss of $0.06 per share in Q1. SoundHound continues to spend heavily on expansion, acquisitions, and AI development, which is keeping the company unprofitable.
Analysts Are Bullish on SOUN Stock
After the earnings report, most analysts kept their Buy ratings on SoundHound AI, although some lowered their price targets, signaling more limited near-term upside expectations.
Four-star-rated DA Davidson analyst Gil Luria lowered his price target on SOUN stock from $14 to $12. He said the company started 2026 with stronger-than-expected revenue, helped by demand across different industries. However, he also warned that profitability pressure and execution risks could weigh on the stock in the near term.
Meanwhile, Northland’s top-rated analyst, Michael Latimore, cut his price target from $14 to $12, which still implies more than 35% upside from current levels. He said Q1 revenue came in slightly ahead of expectations due to solid demand for SoundHound’s AI platform, but added that continued spending on growth hurt profitability and reduced EBITDA forecasts.
Apart from these, analysts at Wedbush and Cantor reaffirmed their Buy ratings on SOUN stock, implying upside of 80% and 44%, respectively.
Is SOUN a Good Stock to Buy?
According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with five Buys and one Hold assigned in the last three months. The average SoundHound stock price target is $13.3, suggesting a potential upside of 60.3% from the current level.
