Shares of SoundHound AI (SOUN) jumped about 7% at market open on Wednesday, as AI stocks made a strong comeback, driven by improving market sentiment. The stock closed the day at a gain of 1.34%. The rally follows easing geopolitical tensions after news of a U.S.–Iran ceasefire, which helped push investors back into tech stocks. SoundHound’s gain is part of a broader AI rebound, with investors returning to growth names after recent weakness.
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For context, SoundHound provides AI-powered solutions in voice recognition and natural language processing.
SOUN Stock Performance
Year to date, SOUN stock is down about 32%.
The company reported record annual revenue of $169 million, nearly double last year’s $84.7 million. Still, the stock has struggled, showing that strong revenue growth hasn’t been enough to boost investor confidence. Concerns remain around ongoing losses, tough competition in the AI space, and whether SoundHound can keep up its rapid growth over time. More recently, the stock faced added pressure after CFO Nitesh Sharan announced his exit in April, along with reports of insider selling, which made investors more cautious.
That said, there have been some positive signs. Earlier this month, the stock saw a rebound, and last week it jumped after SoundHound expanded its partnership with Mexico-based insurer Quálitas. Since 2022, SoundHound’s AI has scaled to handle around 100,000 calls per month for Quálitas — a 150% increase.
Analysts Stay Bullish on SOUN Stock
H.C. Wainwright analyst Scott Buck has the most bullish view on SoundHound AI, setting a $20 price target, implying almost 190% upside. He said the company is aiming to reach adjusted EBITDA break-even by late 2026 while continuing to invest in growth. While this could pressure margins in the short term, Buck believes SoundHound is well-positioned to expand and sees strong long-term potential in the voice AI market.
Meanwhile, D.A. Davidson four-star-rated analyst Gil Luria pointed to the company’s solid financial position, including a healthy current ratio of 4.59. He also noted that SoundHound’s core business looks strong and may be undervalued after the recent stock decline.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with four Buys and one Hold assigned in the last three months. The average SoundHound stock price target is $14.50, suggesting a potential upside of over 110% from the current level.
