Shares of SoundHound AI (SOUN) have been in the spotlight with a strong winning streak. The stock has gained nearly 43% over the past month and 68% in the last six months. After this recent surge, the short-term upside appears limited, as the price has moved beyond analysts’ average targets. Nonetheless, analysts remain bullish on the company’s long-term prospects in the voice AI market.
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On Monday, SOUN stock rose 6.5%. While there was no company-specific news, the rally was supported by a broader tech-sector surge after Nvidia (NVDA) announced a major partnership with OpenAI to expand data centers, boosting sentiment across AI-related stocks.
SoundHound’s Latest Acquisition
SoundHound AI specializes in voice recognition and natural language processing, offering AI-driven solutions across industries.
Earlier this month, SoundHound acquired Interactions, an AI-powered customer service company, for $60 million in cash. The deal strengthens the company’s position in Agentic AI and expands its enterprise customer base. Additionally, the acquisition is expected to boost profitability immediately, with potential extra payments tied to revenue milestones.
Wall Street Stays Bullish on SOUN
On Wall Street, analysts remain moderately bullish on SOUN stock.
Following the acquisition, five-star-rated analyst Gil Luria at D.A. Davidson raised his price target on SOUN from $15 to $17. Luria believes the acquisition boosts SoundHound’s leadership in AI voice assistants, particularly in the enterprise space, where Interactions already has strong customer ties.
Meanwhile, Scott Buck of H.C. Wainwright reaffirmed his Buy rating on SOUN recently. Buck noted that SoundHound’s shares reflect a premium, which is supported by the company’s strong subscription and booking backlog, which exceeds $1 billion. He believes the expected revenue growth, combined with the limited number of pure-play AI companies, justifies this valuation. Buck also mentioned that while current estimates remain unchanged, the latest acquisition could lead to upward revisions in the future.
On the other hand, five-star-rated analyst Brian Schwartz at Oppenheimer opted for a Hold rating on SOUN stock. He warned that new competitors and the pace of SoundHound’s expansion into existing and new markets may not be fast enough to meet investors’ high expectations. Currently, the stock trades at 26 times its projected 2026 revenue, which is very optimistic, and he believes the growth may not fully justify this valuation.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15.33, suggesting a potential downside of 11.44% from the current level.
