U.S.-based SoundHound AI’s (SOUN) stock skyrocketed after the company announced its partnership with Rekor Systems (REKR). The partnership will combine SoundHound’s voice AI with Rekor’s vehicle recognition software, Rekor Scout, to improve emergency vehicle technology. SOUN stock surged over 20%, while Rekor shares were down by 1.8%.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Meanwhile, President Donald Trump’s move to ease AI (artificial intelligence) regulations, initially set by his successor Joe Biden, may have also contributed to the surge in SoundHound AI’s stock.
SoundHound’s New Partnership Unlocks Exciting Opportunities
The partnership between SoundHound AI and Rekor aims to use voice AI to control police vehicle systems, such as lights and sirens, via voice commands. The technology will eventually be extended to other emergency vehicles, such as fire trucks, ambulances, etc.
SoundHound highlighted the game-changing potential of the partnership, emphasizing that it will provide officers with a hands-free solution to enhance their responsiveness and safety in the field.
Is SoundHound AI a Good Stock to Buy?
SoundHound shares have recorded a spectacular growth of over 800% in 2024. The growth was driven by huge demand for its solutions, along with AI chip giant Nvidia’s (NVDA) announcement of a stake in the company, which further boosted investor confidence.
However, the shares are off to a rocky start in 2025 with a year-to-date loss of 17%. This decline appears to be driven more by broader economic uncertainties and the stock’s high valuation, rather than any specific issues within the company.
Nevertheless, the company is poised for strong revenue and earnings, backed by steady demand and market expansion, which should help drive a stock price recovery. It is also broadening its reach across multiple global industries and has secured partnerships with prominent brands.
In Q3 2024, SoundHound reported an 89% year-over-year increase in revenue, reaching $25 million. Moving forward, the company expects 2024 revenue to fall between $82 million and $85 million, with 2025 revenue ranging from $155 million to $175 million.
SoundHound AI Share Price Prediction
On TipRanks, SOUN stock has received a Moderate Buy rating based on two Buy and two Hold recommendations. The SoundHound AI share price forecast is $15.25, which implies a decline of 7.7% from the current level.
