Shares of voice AI (Artificial Intelligence) solutions provider SoundHound AI (NASDAQ:SOUN) have dropped over 69% from the 52-week high of $5.11. While SOUN stock has lost substantial value, analysts suggest buying this Penny stock (learn more about penny stocks here).
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With this backdrop, let’s delve into SOUN stock.
SoundHound to Grab a Substantial Market Share
SoundHound’s focus on innovation has led the company to build voice and conversational AI technologies with a fraction of investments compared to its peers. As a result, SoundHound has garnered the interest and investment of key strategic partners such as Nvidia (NASDAQ:NVDA), Foxconn, and Samsung Electronics (GB:SMSN), among others.
During the second quarter conference call, the company highlighted that its voice AI technology is powering millions of electronics, cars, and IoT devices. Moreover, it introduced the SoundHound Chat AI platform for the automotive sector and unveiled its AI customer service solution called Smart Answering, targeting restaurants and other businesses. The company’s focus on innovation, new product offerings, expansion of its sales team, and robust channel partner ecosystem solidify its competitive positioning in the Voice AI market.
Echoing similar sentiments, D.A. Davidson analyst Gil Luria initiated coverage on SoundHound with a Buy recommendation on September 26. Luria’s price target of $5 suggests significant upside potential in this Penny stock from current levels. The analyst is confident that SoundHound’s Voice AI platform will be the benchmark in the voice AI market. In addition, Luria expects the company’s growing sales team, strong financials, and enhanced go-to-market strategy to bolster its market share.
As the company is well-positioned to grab a substantial share of the Voice AI market, let’s examine the upside potential of SoundHound stock.
What is the Price Target for SoundHound AI?
In addition to Luria, the other four analysts covering SoundHound stock also maintain a bullish outlook. With five Buy recommendations, SoundHound stock sports a Strong Buy consensus rating. Meanwhile, the analysts’ average price target of $5.04 suggests a significant upside potential of 223.08% from current levels.
Bottom Line
According to analysts’ recommendations, SoundHound is a solid stock to buy now. Further, it offers a considerable upside potential from current levels. While SOUN stock could be a reliable long-term bet, investors can utilize TipRanks’ penny stock screener to discover other attractive penny stocks.
