SoundHound AI Stock (SOUN): Still Worth Buying After That Massive Surge?

AI voice recognition play SoundHound just ripped through the market—but is there any fuel left in the tank?

Analyzing the Rally

The stock's recent explosion has traders scrambling. SoundHound's voice AI tech suddenly became Wall Street's favorite shiny object, but sustainable growth requires more than hype.

Voice AI's Make-or-Break Moment

SoundHound either dominates the conversational AI space or becomes another cautionary tale. The technology shows promise—integrating with everything from drive-thrus to smart homes—but execution separates winners from vaporware.

Wall Street's Selective Amnesia

Analysts suddenly remember how to spell 'disruptive technology' when stocks go vertical. SoundHound's valuation now demands perfect execution, something the market pretends is inevitable until the next earnings call.

Buy the Dip or Watch the Cliff?

Every AI stock eventually faces the profitability test. SoundHound either converts its technical lead into revenue or joins the graveyard of 'next big things' that burned through cash faster than VC patience.

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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.