SoundHound AI (SOUN) saw its stock surge over 7% in intraday trading on Thursday, pushing its 30-day rally to about 34%. The stock’s strong run shows growing investor confidence in its voice AI technology. However, with growing competition and profitability concerns, investors are unsure if the rally can last.
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Looking ahead, analysts warn that the recent rally has made the stock risky. While revenue is growing, progress in the auto business are still uncertain. As a result, the future 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 handle many calls at once, so no customer is missed and wait times stay low.
AI Deal Sparks SOUN Rally After Analyst Downgrade
The launch gave SoundHound’s stock a big boost, helping to offset a downgrade from Piper Sandler 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.
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.
