SoundHound AI (NASDAQ:SOUN) has been one of the more interesting AI stories on the market lately. After a rough year in 2025 – when shares tumbled roughly 50% even as the business continued to grow revenue – the stock is finding renewed support in early 2026. Over the past week, SOUN jumped about 7% on Friday and followed up with another ~6% gain on Monday morning.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
So, what’s actually driving this move? The simple answer is growing excitement around SoundHound’s latest innovations. At CES 2026 in Las Vegas, the company showcased its next-generation voice and agentic AI technology, including its Amelia 7 platform and new Vision AI capabilities that allow devices to “see and speak” in order to interpret environments and take action. The company also highlighted partnerships, including voice-commerce integrations with OpenTable and collaborations in the automotive space, pointing to real commercial traction beyond basic voice assistants.
Following meetings with SoundHound’s management team at CES, H.C. Wainwright analyst Scott Buck pointed to strong interest across multiple verticals, particularly automotive and service-oriented industries. Buck also highlighted favorable momentum across both direct and channel sales, while noting that tighter cost discipline should help narrow losses and sharpen the company’s path toward profitability.
The key takeaway is that growth remains the priority over near-term margins. For now, SoundHound appears willing to invest aggressively in revenue opportunities rather than rush toward profitability. As Buck put it, “The company may sacrifice adj. EBITDA margin near term should revenue opportunities present themselves, either organically of [sic] through M&A.”
That flexibility is supported by a strong balance sheet. SoundHound ended Q3 2025 with roughly $269 million in cash and no debt, giving management room to pursue strategic partnerships that could drive additional customer engagement and revenue growth over time.
“We are modeling 2025 and 2026 adj. EBITDA losses of $58.1M and $4.9M respectively. However, the company continues to target adj. EBITDA break-even by year-end 2026, which we view as possible and represents a powerful inflection point for the business… While growth rarely moves in a straight line, we believe the company continues to position itself as long term winner in voice AI and expect the company to continue to demonstrate material revenue growth through 2026,” the analyst summed up.
Against that backdrop, Buck assigns SOUN a Buy rating, and his $26 price target points to ~126% upside from Friday’s close. (To watch Buck’s track record, click here)
Stepping back to the broader Wall Street view, SoundHound AI stock earns a Moderate Buy consensus rating, supported by 5 Buys and 2 Holds. Meanwhile, the Street’s average price target of $16.60 suggests shares could climb 41% over the next 12 months. (See SOUN stock forecast)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
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.