Artificial intelligence (AI) voice company SoundHound AI is seeing its stock rise today alongside updated coverage from Wedbush analyst Daniel Ives. The big news here is the analyst increasing the firm’s price target for SOUN stock from $10 to $22 per share. That represents a potential 31.74% upside for the company’s stock. He also maintains an Outperform rating for the shares.
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SOUN stock is getting a 2.37% boost on Monday following this new price target. That builds on its previous growth, which includes an amazing year-to-date increase of 713.21%. The stock is also up 122.67% over the last three years.
What’s Behind the SOUN Price Target Increase?
The Wedbush analyst believes SoundHound AI has a bright future ahead of it alongside the ongoing AI boom. That includes a wide-use scenario for AI chat, recurring revenue from its software model, and improved monetization capabilities. This gives it a strong position to capture a portion of the $1 trillion expected to be spent on AI in the coming years.
Excitement for today’s updated price target brings increased interest in SOUN stock. That has it experiencing heavy trading with more than 80 million units moving. This is well above its three-month daily average trading volume of 27.42 million. Investors will note that SOUN is a favorite of meme traders, meaning today’s heavy trading is likely somewhat contributable to them.
Is SOUN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for SoundHound AI is Moderate Buy based on three Buy and two Hold ratings over the last three months. With that comes an average price target of $8.10 with a high of $10, and a low of $6. That’s a potential 53.15% downside for SOUN shares. This doesn’t include today’s updated price target.
