SoundHound AI (SOUN) shares have bounced back 10.4% over the past five days after hitting a record low, supported by optimism in the broader market. The stock rallied 14% on Tuesday to $6.87 as investors hunted for bargains following a 52-week low of $5.83 the day before. The rebound was further supported by gains in the wider market amid renewed hopes for an end to the war in the Middle East. As of Wednesday, SOUN stock is up another 1.16%.
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For context, SoundHound operates as a voice AI platform that enables brands to engage with users through customized, voice-driven products, services, and applications. The company currently has a market capitalization of approximately $2.95 billion.
What Lies Ahead for SoundHound AI?
Year-to-date, SOUN stock is down about 30%, reflecting volatility in the broader AI market. After earlier gains from excitement around voice AI and enterprise use, the stock fell due to valuation concerns, profit-taking, and mixed sentiment.
As SoundHound continues growing in the fast-growing conversational AI market, the recent dip could be a good chance for investors to buy. Notably, analysts remain strongly bullish, with an average upside potential of over 100%.
Analysts See Huge Upside
H.C. Wainwright analyst Scott Buck has set the highest price target on SoundHound AI at $20, implying more than 180% upside.
Buck noted that SoundHound’s management aims to reach adjusted EBITDA break-even by late 2026 while maintaining strong growth efforts. While this approach may weigh on short-term margins, Buck believes the company is well-positioned to support its expansion. He remains bullish on SoundHound’s long-term prospects, seeing it as a key player in the voice AI market with consistent revenue growth.
Meanwhile, D.A. Davidson’s four-star-rated analyst Gil Luria highlighted SoundHound’s healthy current ratio of 4.59. Using a valuation of roughly 20x projected 2027 revenue, Luria said the company’s core voice AI business remains strong and could be undervalued following the market’s recent selloff.
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 110.30% from the current level.
