SoundHound AI (SOUN) has captured investor interest with its voice AI technology and strong partnerships in the automotive and tech sectors. While the stock has experienced a sharp rally of over 160% in the last 12 months, questions remain about its long-term profitability and growth outlook. On Wall Street, analysts are moderately bullish on SOUN stock, but the upside ahead remains limited.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Is SOUN a Good Investment Now?
SoundHound has posted impressive revenue growth, starting 2025 with Q1 revenue of $29.1 million. This marked a 151% increase from the same period last year. This sharp rise reflects surging demand for voice AI technology and growing momentum across recent quarters. Moreover, Q1 results highlight a well-diversified customer base, with no single client contributing more than 10% of total revenue.
Looking ahead, the company projects 2025 revenue between $157 million and $177 million, nearly doubling last year’s figures.
That said, the risks are substantial. Profitability in the near term remains uncertain. Even if SoundHound meets its 2025 revenue target, achieving EBITDA breakeven would require a huge margin improvement, which is challenging given rising cloud infrastructure costs and ongoing R&D investments.
Overall, SoundHound is a risky opportunity. It offers substantial upside potential if the company successfully expands into its total addressable market (TAM) and moves toward profitability, but meaningful downside risk if execution falls short.
What Do Analysts Say About SOUN Stock?
In this context, TipRanks’ Bulls Say, Bears Say tool highlights key analyst insights on both the bullish and bearish cases for SOUN stock.
Bulls are optimistic about SoundHound’s growth potential, particularly in the emerging voice commerce space, which could fuel strong revenue growth and long-term stock appreciation. Bears, however, point to near-term challenges such as a slowdown in auto production as well as stiff competition from more established players.
What Is the Target Price for SoundHound?
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 3.7% from the current level.
