Can Soundhound AI Inventory Double From Right here?

SoundHound AI (NASDAQ: SOUN) skilled a unprecedented surge in 2024, climbing from $2 to $24—a twelvefold improve. Whereas the inventory has pulled again in early 2025, now down roughly 55% from its 52-week excessive of $25, a number of catalysts may drive it again to its earlier highs, representing a possible doubling from present ranges.

SoundHound’s monetary trajectory exhibits clear acceleration. The corporate has demonstrated substantial income development lately, with a three-year common development charge of 69%. Extra impressively, Soundhound’s revenues doubled over the past 12 months, growing from $51 million to $102 million. This accelerated development is additional underscored by its most up-to-date quarterly revenues, which surged by 151.2% year-over-year to $29 million, up from $12 million.

Trying forward, administration initiatives 2025 income between $157 million and $177 million, representing roughly 100% year-over-year development. This elevated steering indicators robust confidence within the demand for voice AI options throughout a number of sectors. SoundHound’s constant capacity to exceed and lift steering highlights its operational execution throughout a essential development part. Individually, should you search upside with decrease volatility than particular person shares, the Trefis Excessive-High quality portfolio presents an alternate – having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Additionally, try – UnitedHealth: Purchase Or Promote UNH Inventory At $325?

 

Picture by Luk Luk from Pixabay

Key Development Drivers

SoundHound’s future development hinges on its strategic positioning and up to date developments in key markets.

Increasing Automotive Market Penetration

The automotive sector represents SoundHound’s most vital alternative. The corporate has cast essential partnerships with main producers, together with Mercedes-Benz, Hyundai, Kia, and numerous Stellantis manufacturers comparable to DS Vehicles, Peugeot, Opel, and Vauxhall.

In 2025, SoundHound considerably expanded its automotive presence with a broader rollout of its Chat AI to further Stellantis manufacturers, together with Alfa Romeo and Citroën, throughout numerous European markets. In February 2025, SoundHound launched “Model Personalities,” permitting automotive producers to customise their voice assistants’ personas. A key collaboration with Tencent Clever Mobility was introduced in April 2025, integrating SoundHound’s AI into Tencent’s cloud options for world auto manufacturers. This enlargement aligns with the accelerating automotive voice AI market, as producers search to reinforce consumer experiences.

Moreover, June 2025 analysis highlighted a possible $35 billion annual alternative for automakers by means of in-car voice commerce, enabling options like ordering meals and different companies immediately from the automobile. Because the automotive voice AI market quickly expands and producers try for differentiation by means of enhanced consumer experiences, SoundHound’s confirmed integration capabilities place it to seize a considerable share.

Strategic Know-how Partnerships

SoundHound’s collaboration with NVIDIA underscores its dedication to cutting-edge improvement. This partnership focuses on edge options that allow enhanced Voice Generative AI experiences immediately in automobiles, probably lowering latency and bettering consumer experiences. These expertise partnerships validate SoundHound’s method and supply entry to superior computing sources important for next-generation voice AI purposes.

Increasing Enterprise Footprint Via Acquisition

SoundHound’s August 2024 acquisition of Amelia considerably expanded its enterprise presence. Amelia brings established customer support contracts throughout finance, insurance coverage, retail, and healthcare sectors, offering speedy income diversification and entry to lots of of enterprise manufacturers. The mixing has already yielded outcomes: Amelia AI Brokers have dealt with over 100,000 buyer requires Apivia Courtage, lowering inbound queries by almost 20%. This demonstrates the expertise’s real-world influence and income potential.

Path to Doubling: The Upside Situation

For SOUN inventory to double from present ranges, the corporate would wish to reveal:

• Sustained Income Development: Sustaining 25%+ development charges within the coming years after doubling revenues this yr.
• Margin Growth: Changing income development into bettering profitability metrics.
• Market Share Good points: Capturing vital parts of each the automotive and restaurant voice AI markets.
• Profitable Integration: Realizing synergies from the Amelia acquisition.

Let’s study the potential upside.

At the moment buying and selling at $11, SOUN has a price-to-sales (P/S) ratio of 40x based mostly on its trailing twelve-month income. If SoundHound’s revenues had been to develop threefold from $85 million in 2024 to an estimated $250 million in 2027, the P/S a number of would shrink to 16x if the inventory worth remained fixed, proper? However that’s what Soundhound’s buyers are betting won’t occur!

As an alternative of the P/S ratio compressing to 16x, a extra modest compression, maybe to round 30x, seems extra possible if revenues broaden considerably. Whereas a 30x income a number of could seem excessive, sure main AI niches, particularly these perceived as “transformative,” can command considerably larger valuations. At 30 occasions price-to-sales, SOUN’s inventory worth may attain round $20, representing almost a 2x acquire from present ranges. The logic is easy: as revenues broaden dramatically, even with some a number of compression, absolutely the inventory worth ought to rise considerably.

Dangers to Take into account

Whereas the upside potential is compelling, SoundHound’s capacity to attain a 2x development faces a number of key dangers:

• Monetary & Valuation: The corporate continues to incur vital losses and burn money attributable to excessive working bills. Its present excessive valuation calls for constant, robust income beats; any miss may result in vital inventory worth declines.
• Market & Competitors: SoundHound operates in a extremely aggressive voice AI market, dealing with macroeconomic headwinds and competitors from bigger tech firms, which may result in pricing pressures and influence margins.
• Operational & Market Volatility: The inventory is very unstable, making it unsuitable for risk-averse buyers. Traditionally, SOUN inventory has fared a lot worse than the benchmark S&P 500 index throughout financial downturns. For example, it fell a whopping 94% from a excessive of $15 on Might 5, 2022, to $0.97 on December 22, 2022, in comparison with a peak-to-trough decline of 25% for the S&P 500 throughout the identical interval.
• Execution & Technological Disruption: Assembly formidable income steering is essential for justifying its valuation. The quickly evolving voice AI market additionally poses dangers of technological or regulatory disruptions that would undermine SoundHound’s aggressive edge.

The Verdict

Whereas near-term volatility might persist, SoundHound’s strategic positioning in high-growth voice AI markets, mixed with accelerating income momentum and increasing partnerships, presents a compelling case for vital upside potential over the following 2–3 years. Nevertheless, buyers ought to proceed with a transparent understanding of the dangers. Lofty valuations, aggressive pressures, and the inventory’s historical past of amplified volatility throughout market downturns are actual issues that would influence returns. Now, we apply a danger evaluation framework whereas developing the Trefis Excessive High quality (HQ) Portfolio which, with a group of 30 shares, has a monitor file of comfortably outperforming the S&P 500 over the past 4-year interval. Why is that? As a gaggle, HQ Portfolio shares offered higher returns with much less danger versus the benchmark index; much less of a roller-coaster experience, as evident in HQ Portfolio efficiency metrics.

Make investments with Trefis Market-Beating Portfolios

See all Trefis Value Estimates

 

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.