Oppenheimer Spots Potential in SoundHound AI Stock — But Holds Back From Buy Rating

Wall Street's latest AI darling gets analyst attention—but not quite analyst approval.

The Cautious Optimism

Oppenheimer's team sees promise in SoundHound's voice AI technology yet stops short of slapping a buy rating on the stock. They're teasing potential without putting money where their mouth is—classic analyst behavior that leaves investors wondering if this is genuine insight or just another institutional hot take.

The AI Landscape Shift

Voice recognition technology keeps gaining traction across industries, from automotive to restaurant tech. SoundHound's positioning in this space draws professional interest, though the firm's hesitation suggests underlying concerns about valuation or competitive moats.

The Bottom Line

Another case of analysts wanting to have their cake and eat it too—highlighting a stock's potential while avoiding actual recommendation responsibility. Because why take a stand when you can just say 'maybe' and collect your fee anyway?

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Oppenheimer analyst Brian Schwartz believes SoundHound has the right ingredients to capitalize on this opportunity, pointing to its strong conversational AI platform and a customer base that already sees it as a leader in speech-to-meaning technology, data science, unstructured analytics, and innovation.

The bull case, says Schwartz, centers on SoundHound’s position in this technological shift – speech-to-meaning – and its focus on automating a sizable market with Voice AI. Additionally, the 2026 revenue multiple could make the shares appear pricier than they truly are, given that the company entered this year with a backlog-to-subscription revenue ratio of 21:1.

Meanwhile, Schwartz counts several factors that could “generate durable growth” for SoundHound in the years ahead. These include a “monetization flywheel” fueled by network effects, being an early mover in automotive and quick-service restaurants, ongoing product innovations and expansion into new areas, plenty of room to grow in an underpenetrated market, strategic acquisitions, and opportunities to expand internationally.

However, there’s also a bear case to consider; that revolves mostly around the “durability of the moat.” SoundHound is up against major OEMs and “mega platform competitors” that build their own voice AI into their ecosystems, leveraging large user bases to bundle the technology, compete on price, or push commoditization in the market. On top of that, newer LLM providers are entering the space, offering solutions that can handle real-time voice interactions.

There’s also a risk to its revenue expectations; to reach its 2025 revenue guide, SoundHound will need a significant organic revenue boost in the second half of the year. But Schwartz points out that such a top-line acceleration in this 2H is rare in the software world, especially given current macro and geopolitical uncertainties. The “key drivers” in making the guide a reality include a strengthening Amelia business, momentum in QSR expansion sites, and the successful conversion of a sizable second-half pipeline.

So, while the company has plenty going for it, Schwartz’s concerns lead him to initiate coverage of SOUN with a Perform (i.e., Neutral). (To watch Schwartz’s track record, click here)

That said, of the 6 other analysts to have recently sized up SOUN’s prospects, only 1 joins Schwartz on the sidelines while all 5 others rate the stock a Buy, making the consensus view a Moderate Buy. The average target stands at $15.43, implying the shares will climb ~6% higher in the months ahead. (See)

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