TLDR
- SOUN stock has climbed 95% over six months and 230% in the past year
- Second quarter revenue tripled year-over-year with first half 2025 revenue reaching $71.8 million
- Technical analysis shows Strong Buy with positive MACD, EMA, and ROC indicators
- Company targets profitability by end of 2025 while expanding in healthcare and restaurant sectors
- Analyst consensus at Moderate Buy with average target price 13.61% below current trading level
SoundHound AI has emerged as a hot trade in the voice recognition space. The stock’s performance has attracted attention from technical traders and fundamental investors alike.
The company posted impressive revenue growth in recent quarters. First half 2025 revenue hit $71.8 million, representing 187% growth year-over-year.
SoundHound’s business model centers on its Houndify platform. Companies use this service to create custom voice recognition tools while maintaining control of their data.
The company has made several strategic purchases recently. Acquisitions of SYNQ3, Allset, Amelia, and Interactions have expanded its footprint in restaurants and customer service.
Voice AI technology is gaining traction across multiple industries. The agentic AI market is projected to grow at a 43.8% compound annual rate through 2034.
Charts Point Higher
Technical indicators are lining up in favor of bulls. The Moving Average Convergence Divergence shows a clear Buy signal for SOUN stock.
The 50-day Exponential Moving Average sits at $14.1. Current price action at $17.79 indicates bullish momentum. The 20-day EMA also confirms the upward trend.
Rate of Change readings come in at 10.77, another Buy signal. This momentum indicator measures percentage change in price over time. Readings above zero typically confirm uptrends.
Williams %R provides additional confirmation. This oscillator suggests the stock isn’t overbought. That reading implies there’s room for further price appreciation.
Growth Story Takes Shape
The company has raised its full-year revenue guidance. Management now expects growth between 89% and 110% for 2025. This outlook came before the Interactions acquisition announcement in September.
Gross margins have declined as the business has scaled. First half 2025 adjusted gross margin came in at 55.3%, down from 76.2% in 2023. Cloud costs and new customer onboarding have pressured profitability metrics.
The bottom line remains in the red. Adjusted EBITDA was negative $36.5 million in the first half of 2025. Full year 2024 saw adjusted EBITDA of negative $61.9 million.
Management aims to reach profitability by the end of 2025. New product launches and expansion into healthcare and fast food sectors should help drive revenue.
The customer roster includes major brands like Stellantis, Chipotle, and Mastercard. These partnerships validate the technology and provide steady revenue streams.
Street Remains Cautious
Wall Street has a mixed take on the stock. Eight analysts cover SOUN with five Buy ratings and three Hold ratings.
The average price target stands at $15.43 per share. That represents potential downside of 13.61% from current levels.
Analysts project revenue growth at a 47% compound annual rate from 2024 to 2027. Adjusted EBITDA is expected to turn positive by 2027.
Share count has more than doubled since the April 2020 SPAC merger. Dilution has come through secondary offerings and stock-based compensation.
Nvidia sold its entire position in SoundHound earlier this year. Company insiders have been net sellers over the past 12 months.
The valuation sits at 29 times next year’s projected sales. Enterprise value has reached $6.2 billion.
The Interactions deal is expected to boost operating profits immediately. Full impact on revenue hasn’t been quantified by management yet.
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