SoundHound AI (SOUN) has quickly become a standout name in the Russell 2000 Index, capturing investor attention with its breakthrough voice recognition technology and rapid revenue growth. As demand for AI-powered solutions surges, SoundHound’s expanding partnerships and bullish outlook position it as one of the most talked-about small-cap tech stocks in the market today.
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For context, the Russell 2000 Index (IWM) tracks 2,000 U.S. small-cap stocks, serving as a key benchmark for these companies.
What Does SoundHound AI Do?
SoundHound AI offers a flexible voice AI platform that helps businesses bring conversational intelligence to their products and services. Its technology is used across various sectors, including automotive, hospitality, restaurants, and customer support, to create more natural and engaging voice-driven experiences.
While the stock surged over 160% in the last 12 months, 2025 has proven challenging, with SOUN down almost 50% year-to-date. Despite short-term headwinds tied to macroeconomic conditions, the company’s long-term growth story and industry relevance remain strong.
Why Analysts Are Bullish on SOUN Stock
SoundHound’s voice AI is picking up speed, with Q1 revenue hitting $29.1 million, marking a 151% year-over-year increase. For 2025, the company has a revenue outlook of $157–$177 million.
Top-ranked analyst James Fish at Piper Sandler is bullish on SoundHound’s stock, calling it a rising leader in voice AI. He highlighted the company’s cutting-edge speech recognition and natural language processing technologies that power real-time conversations. Piper Sandler also identified quick-service restaurants and customer experience as key growth areas.
Likewise, H.C. Wainwright’s price target of $18 predicts around 70% upside from current levels. Meanwhile, analyst Scott Buck pointed to the company’s strong financial position, with $246 million in cash as of March 31, 2025, and no debt, giving it flexibility to invest in growth. He also noted SoundHound’s growing appeal to small and mid-sized businesses, thanks to its AI-driven, cost-efficient solution.
In this context, TipRanks’ Bulls Say, Bears Say tool highlights key analyst insights on both the bullish and bearish cases for SOUN stock.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with four Buys and three Holds assigned in the last three months. The average SoundHound share price target is $11.50, suggesting a potential upside of 8% from the current level.
