Voice AI is becoming a critical focus in the tech world, with SoundHound AI (SOUN) and Cerence Inc. (CRNC) standing out as key players in this specialized space. SoundHound is a rising player using its voice AI technology in different industries, including automotive and hospitality. On the other hand, Cerence has long been a dominant force in voice assistant solutions for the automotive sector, working closely with major car manufacturers.
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SOUN stock more than doubled over the last 12 months, but that strong rally has led to volatility. In 2025 so far, the stock has fallen 38% year-to-date. Meanwhile, CRNC stock is showing more stability, gaining over 25% this year after an impressive 200% surge in the last 12 months. Since both stocks are still trading far below their all-time highs, let’s explore which one offers greater upside potential for investors.
SoundHound AI
SoundHound began 2025 on a strong note, reporting Q1 revenue of $29.1 million, marking 151% growth year-over-year. The company expects full-year revenue to double, projecting between $157 million and $177 million, up from $84.5 million in 2024. However, it’s still not profitable, with an adjusted EBITDA loss of $61.9 million in 2024.
Beyond its financial losses, SoundHound also faces tough competition in the voice AI space from tech giants like Amazon’s (AMZN) Alexa, Alphabet’s (GOOGL) Google Assistant, and Apple’s (AAPL) Siri, all of whom are investing heavily in their platforms.
Even so, SoundHound stands out with its adaptable Houndify platform, which enables voice AI solutions across industries. SoundHound offers flexible voice AI tools, making it a good choice for businesses that want to use voice tech without relying on big tech companies.
Cerence
Unlike SoundHound, Cerence is a larger and profitable company, but its revenue growth is more modest and stable. In 2024, it launched a restructuring plan aimed at reducing costs and improving efficiency. Despite its restructuring, Cerence is rebuilding with a focus on innovation. Its XUI platform and Nvidia (NVDA)-backed CaLLM model aim to boost in-car voice AI, while ChatGPT integration adds to its generative AI edge.
Cerence’s second-quarter results reflect its progress with the turnaround plan. Revenue rose 15% year over year to $78 million, slightly above expectations. Cost cuts helped lower non-GAAP operating expenses by 32%, leading to a strong rebound in profits. Adjusted EBITDA came in at $29.5 million, and GAAP net income reached $21.7 million, marking a big improvement from last year’s loss.
Cerence kept its 2025 revenue forecast at $236–$247 million, which is lower than last year due to losing the Toyota (TM) deal and fewer license agreements. However, the company expects adjusted EBITDA of $28–$34 million, highlighting its shift toward profitability over growth this year.
SOUN or CRNC: Which Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we have compared SOUN and CRNC to see which stock analysts currently favor. SoundHound’s stock holds a Moderate Buy rating, but its recent rally has pushed the stock above the average price target of $11.31, suggesting limited near-term upside. Notably, SOUN stock is up over 26% in the past month.
On the other hand, CRNC stock has a Hold consensus based on four Hold ratings and one Buy in the past three months. However, Cerence’s average price target of $11.60 implies an 18.6% upside from current levels, offering more room for potential gains.
Conclusion
SoundHound AI and Cerence are both notable players in the voice AI space. SoundHound is a fast-growing disruptor, expanding its revenue and deploying voice AI across diverse industries. While recent gains limit short-term upside, its long-term potential may still appeal to growth-focused investors, though volatility remains a concern.
In contrast, Cerence is more stable and profitable, with a stronghold in the automotive sector. However, it faces slower growth due to contract losses and limited market expansion opportunities.