SoundHound AI (NASDAQ:SOUN) stock spent much of 2025 under pressure, with shares tumbling nearly 70% earlier in the year before regaining some footing more recently.
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The sell-off followed concerns over an elevated valuation, jitters sparked by Nvidia’s decision to unwind its stake in the company, and weakness in the broader market.
Since hitting an April trough, however, the company has been steadily clawing back its losses – though SOUN remains down some 23% year-to-date. Encouragingly, strong year-over-year revenue growth of 217% in Q2 signaled that execution remains robust and helped restore confidence that the business is heading in the right direction.
That momentum has been supported by continued product innovation. The AI-powered voice recognition company is seeking to carve out a unique niche, providing a wide variety of industries with automated voice assistants. This May, SoundHound introduced Amelia 7.0, its latest AI assistant designed to push the platform further into the agentic AI era.
Even with these advances, investors still face a balancing act. SoundHound remains in the red, and its 2026 Forward Price-to-Sales multiple of 34x leaves little room for error. With Q3 2025 earnings approaching on November 6, the key question is, what’s the right way for investors to approach SOUN at this point?
Top investor Geoffrey Seiler argues that there could be a compelling opportunity developing here.
“If SoundHound can become an agentic AI leader, the upside in the stock from here could be tremendous,” notes the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
Seiler is encouraged by the company’s technological strides, pointing specifically to Amelia 7.0. The investor notes that many voice-enabled chatbots struggle not only to accurately parse language but also to grasp user intent. In contrast, Amelia 7.0 is designed to bridge that gap.
“Instead of just being a voice recognition platform, Amelia 7.0 was developed to act more like a digital employee that can interact with people more naturally, understand their intent, and then go out and autonomously complete tasks,” emphasizes Seiler.
Further strengthening his view, Seiler highlights that Amelia 7.0 can integrate with ERP and CRM systems. SoundHound is already working to transition 15 of its largest enterprise customers to the platform.
Still, Seiler acknowledges the risks, citing negative operating cash flow and a demanding valuation. Yet, despite those concerns, the investor sees enough promise in the company’s “voice-first” technology to justify a toe-in-the-water approach.
“That makes it worth taking a small, speculative position in the name,” sums up Seiler. (To watch Geoffrey Seiler’s track record, click here)
And how does Wall Street see SOUN heading into earnings this week? The stock currently holds a Moderate Buy consensus rating based on 5 Buy recommendations and 2 Holds. The average price target of $16.67 suggests ~10% upside from here. (See SOUN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.