SoundHound AI’s (SOUN) stock has plunged 48% year-to-date, after a stellar 2024, which was driven by high demand and Nvidia’s (NVDA) support. In 2025, shares stumbled as Nvidia’s full exit triggered a 28% drop, shaking investor confidence. Despite this, steady demand, market expansion, and key partnerships could fuel a rebound. Analysts remain moderately bullish, forecasting over 80% upside.
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SoundHound AI specializes in voice recognition and natural language processing, offering AI-driven solutions across industries.
SoundHound’s Growth Story Continues
Despite the Nvidia news setback, SoundHound remains well-positioned as it expands its customer base across new and existing markets with its innovative solutions. In Q3, SoundHound cut reliance on its top client, reducing revenue share from 72% to 12%, showing strong customer diversification. The company is set to report its Q4 2024 results on February 27. Analysts forecast revenue of $33.73 million in the fourth quarter, marking over 97% year-over-year growth.
Most importantly, SoundHound dominates the QSR (quick-service restaurants) voice AI market, partnering with around top 20 brands. With the growing demand for convenience and automation, voice AI is becoming essential for modern restaurants. Restaurants need voice AI to enhance efficiency, reduce labor costs, and improve customer experience. Notably, SoundHound’s crossed the milestone of 100 million customer interactions in the phone ordering system in October 2024, highlighting its widespread use. Its early lead in the QSR sector sets it up for continued growth.
Along with the QSR space, SoundHound is making its mark in the automotive sector. A partnership with Lucid Motors (LCID) shows its potential, and its new in-vehicle voice commerce platform marks another milestone. Meanwhile, the company is eyeing global expansion with deals in the U.S., China, and India.
Considering the growing potential of voice AI technology, SoundHound is in the early stages of growth and has a significant opportunity to capitalize on it.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ Bulls Say, Bears Say tool highlights analyst views on SOUN stock. Bulls see strong operational performance and growth potential of expanding across multiple sectors. On the other hand, bears worry about shrinking margins and capital-related risks.
Is SOUN Stock a Buy or Sell?
Wall Street has a Moderate Buy rating on SOUN stock, with two Buys and one Hold assigned in the last three months. The average share price target for SoundHound is $18.67, which suggests an 81.1% upside.
