SoundHound AI (SOUN) saw its stock surge over 7% in intraday trading on Thursday, extending its rally to roughly 34% over the past 30 days. The surge reflects renewed confidence in the company’s voice AI solutions, which are gaining traction in the automotive, fast-food, and healthcare sectors. However, with intensifying competition and lingering concerns over profitability, investors are questioning whether the rally has real staying power.
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Looking ahead, analysts warn that the recent rally has made the stock’s risk/reward more balanced, especially with ongoing execution concerns. While revenue is growing, uncertainty around profitability and performance in the auto segment means the rally may depend on upcoming results and continued business momentum.
What’s Happening with SOUN Stock?
SoundHound AI, known for its voice-powered AI and conversational intelligence solutions, saw its stock soar over 150% last year. However, it has struggled in 2025, falling 36% year-to-date.
The recent rebound was sparked by news that U.S. restaurant chain Peter Piper Pizza partnered with SoundHound to launch a new voice-enabled phone ordering system for takeout. Since the announcement just two days ago, SOUN shares have climbed nearly 12%, reigniting investor interest.
The new voice AI system is now live across all Peter Piper Pizza locations, allowing customers to place orders by speaking naturally over the phone. The technology allows restaurants to manage high volumes of simultaneous phone orders, ensuring every customer call is answered while reducing missed orders and long wait times.
AI Deal Sparks SOUN Rally After Analyst Downgrade
The rollout served as a strong catalyst for SoundHound’s stock, helping to counter a recent downgrade from Piper Sandler earlier this week. Piper’s four-star-rated analyst James Fish lowered his rating on SOUN from Buy to Hold, while maintaining a $12 price target. Fish expressed caution over potential execution risks in the second half of 2025.
Fish also highlighted concerns about SoundHound’s ability to balance its aggressive growth investments with its goal of turning profitable. While he believes the company is still on track to meet its 2025 targets, he noted that the guidance implies a significant acceleration in the second half, particularly in the automotive segment, which remains vulnerable to broader production challenges.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with three Buys and four Holds assigned in the last three months. The average SoundHound stock price target is $11.50, suggesting a downside of 9% from the current level.
