Shares of SoundHound AI (NASDAQ:SOUN), which offers voice artificial intelligence (AI) solutions, are up about 80% year-to-date. Moreover, SOUN stock more than doubled in one month. Though this penny stock (learn more about penny stocks here) gained quite a lot, Wall Street analysts are still upbeat about its prospects.
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SOUN stock witnessed a notable increase after Nvidia (NASDAQ:NVDA) disclosed a stake in the company. According to the latest 13F filing, chip giant Nvidia bought shares of SoundHound in Q4. Notably, Nvidia held 1.73 million shares of SoundHound valued at $3.7 million as of the end of December 2023.
Analyst Weighs In
Commenting on NVDA’s investment disclosure, H.C. Wainwright analyst Scott Buck said that though NVDA’s investment may be small, it validates the progress made by SoundHound. Additionally, it enhances the credibility of SOUN’s growth plans, given the endorsement from a leader in the AI space.
The analyst expects NVDA’s stake in SOUN shares will attract investor attention and potentially lead to a re-evaluation of the company’s valuation. On February 16, Buck maintained a Buy rating on SOUN stock. His price target of $5 implies 30.59% upside potential.
What is the Future of SoundHound?
SoundHound, which powers products such as autos, TVs, and IoT devices with its voice AI platform, will likely benefit from increased penetration within its existing large customer base.
SoundHound stock has three unanimous Buy recommendations for a Strong Buy consensus rating. Analysts’ average price target of $4.67 implies 22.25% upside potential from current levels.
Bottom Line
SOUN stock has gained quite a lot, and analysts see decent upside potential from current levels. Also, Wall Street is bullish about SoundHound’s prospects. In addition to SOUN, investors can leverage TipRanks’ penny stock screener to discover more top-rated penny stocks.
