After finishing 2024 on a white-hot run, the first few months of the current year were a bit more painful for SoundHound AI (NASDAQ:SOUN). The company’s share price lost more than half of its value between the beginning of the year and a March-April trough — a decrease that corresponded with economy-wide fears of a slowdown, the DeepSeek jolt, and the disclosure that Nvidia had sold its stake in the conversational AI firm.
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Things have been improving since then, however, and the company’s Q2 2025 earnings report on August 7 gave SOUN quite the boost. SOUN’s share price has jumped up some 45% since the earnings call, and it’s easy to understand what all the hullabaloo is about.
SoundHound enjoyed record revenues of $42.7 million, which were up 217% year-over-year. The company has also raised full year 2025 revenue guidance to a range of $160 to $178 million – with a mid-point that is just inches away from 100% year-over-year revenue growth.
Calling the Q2 a “blowout,” one top investor known by the pseudonym Deep Value Investing is expecting big things from SOUN – especially in the Quick Service Restaurant (QSR) portfolio.
“I see upside ahead, mainly in the QSR segment, with an attractive price action following a breakout after Q2 earnings,” explains the 5-star investor, who is among the top 4% of TipRanks’ stock pros.
Deep Value points to the more than 14,000 restaurants where SOUN is deployed, while noting “new wins” in Q2 with IHOP, Red Lobster, and Peter Piper Pizza.
Beyond the restaurant industry, Deep Value notes that SOUN has inked deals with seven out of the top 10 financial institutions. In another promising sign, four of these firms have either renewed their partnership with SOUN or increased their engagement.
“We are in the middle of an AI supercycle, which I believe could well last until the end of the decade,” reminds the investor. “The growth is undeniable.”
No big surprise here, Deep Value Investing is rating SOUN a Buy. (To watch Deep Value Investing’s track record, click here)
That’s pretty much where Wall Street finds itself as well. With 5 Buys and 2 Holds, SOUN enjoys a Moderate Buy consensus rating. The surge has gone a bit farther than most bulls have projected, however, as SOUN’s 12-month average price target of $15.29 implies minimal downward movement in the year ahead. (See SOUN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.