Shares of SoundHound AI (SOUN) have come under heavy pressure, recently falling to a new 52-week low of under $6. Despite this sharp pullback, Wall Street analysts remain optimistic about the company’s long-term growth potential, supported by its expanding presence in the voice AI market. On average, analysts maintain a price target of $14.50, implying a potential upside of over 145.75% 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.
Why Is SOUN Stock Down in 2026?
In February, SoundHound reported record annual revenue of $169 million, roughly double the $84.7 million it generated a year earlier. Despite this strong top-line growth, SOUN stock has struggled, highlighting a disconnect between revenue momentum and investor sentiment. Investors remain concerned about ongoing losses, intense competition in the AI space, and whether the company can sustain its rapid growth trajectory over the long term.
More recently, the stock came under additional pressure after CFO Nitesh Sharan announced his departure in April, along with reports of insider selling, which further weighed on investor confidence.
Year-to-date, SOUN stock has declined by over 40%.
Analysts’ Views on SOUN Stock
H.C. Wainwright analyst Scott Buck maintains the Street-high price target of $20 on SOUN. Buck recently lowered his target following the latest earnings report, citing near-term valuation pressure across the software sector. However, he remains optimistic about the company’s outlook. Buck highlighted that organic growth remains strong, supported by new contract wins and customer renewals across multiple industries.
He also noted that SoundHound aims to reach adjusted EBITDA break-even by late 2026, while continuing to prioritize growth. This strategy may weigh on near-term margins, but it positions the company for stronger long-term revenue expansion.
Meanwhile, five-star analyst Gil Luria of D.A. Davidson recently reiterated a Buy rating on SOUN. Despite the negative reaction to CFO Nitesh Sharan’s exit, Luria believes the stock could more than double from current levels. Luria also highlighted SoundHound’s strong balance sheet as a key advantage, with the company reporting $248 million in cash and cash equivalents and no debt as of December 31, 2025.
Using a valuation of roughly 20× projected 2027 revenue, the analyst believes SoundHound’s core voice AI business remains solid and may now be undervalued following the recent selloff.
Is SOUN a Good Stock to Buy?
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 145.76% from the current level.
