No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 23, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

From Penny Stock to AI Powerhouse, Is SOUN Stock a Buy Now?

by TheAdviserMagazine
3 months ago
in Business
Reading Time: 4 mins read
A A
From Penny Stock to AI Powerhouse, Is SOUN Stock a Buy Now?
Share on FacebookShare on TwitterShare on LInkedIn


Businessman touching the brain working of Artificial Intelligence (AI) Automation by Suttiphong Chandaeng via Shutterstock

SoundHound AI’s (SOUN) journey, from a modest penny stock to a company with a market cap now nearing $5 billion, is nothing short of remarkable. SOUN has emerged as a serious contender in the conversational and agentic AI space.

Nvidia’s (NVDA) investment in the company in late 2023 sparked investor interest in this penny stock. Nvidia’s approval was like gold, and SOUN stock skyrocketed following the news. Shares have returned a staggering 249% over the last three years, outperforming the broader market.

Over the last three months alone, SOUN stock has climbed 40%. While Nvidia is no longer invested in SoundHound AI, is the stock still a buy?

A graph on a white background

AI-generated content may be incorrect.
www.barchart.com

SoundHound AI is a pure-play voice AI technology company. The company’s technology is not only exciting, but also proven in a variety of industries, including restaurants, automotive, healthcare, financial services, energy, telecom, information technology, travel, and hospitality. Because of real-world deployments in major industries, the company’s total addressable market (TAM) is rapidly expanding.

The company reported $29.1 million in revenue in the first quarter, a robust 151% year-over-year increase. This reflects the compound effects of new business lines, improved technology, and three smart acquisitions in 2024: Synq3 (restaurants and hospitality), Allset (voice commerce integration), and Amelia (Agentic AI platform).  Management emphasized that no single customer accounted for more than 10% of revenue in the quarter, significantly reducing concentration risk and improving long-term revenue durability.

CFO Nitesh Sharan described the first quarter as another “mile marker” for SoundHound, noting that enterprise momentum is growing across multiple industries, including financial services, healthcare, hospitality, and, most notably, restaurants. Notably, the restaurant vertical emerged as a breakout growth driver, with SoundHound activating over 1,000 new live restaurant locations in the quarter, a tenfold increase over the previous year.The company is developing agentic AI and voice commerce platforms, which are increasing customer interest and delivering better results. Enterprises can therefore expect faster resolution times, higher automation rates, and massive query volume growth.

Story continues

SoundHound has reaffirmed its full-year revenue guidance of $157 million to $177 million. While revenue is increasing, the company is not yet profitable. It reported an adjusted net loss of $22.3 million for the quarter. Adjusted EBITDA also came in at a negative $22.2 million.

However, it has already implemented cost-cutting measures, and benefits from acquisition synergies are beginning to emerge. Management also indicated plans to renegotiate or phase out low-margin acquired contracts over the next 18 to 24 months, thereby supporting long-term margin expansion. Importantly, the company has a strong financial foundation, with $246 million in cash and equivalents and zero debt. SoundHound is also committed to reaching adjusted EBITDA profitability by the end of 2025. Analysts predict a revenue increase of 88.4% in 2025, followed by a 27% increase the following year.

Overall, Wall Street rates SOUN stock as a “Moderate Buy.” Among the seven analysts covering the stock, four give it a “Strong Buy” rating, while three suggest a “Hold.”

The stock has surpassed its average price target of $11.50. However, the highest target price of $18 implies potential upside of 55% within the next 12 months. While the Street-high estimate sits at $18, SOUN stock’s 52-week high stands at $24.98.

A screenshot of a computer

AI-generated content may be incorrect.
www.barchart.com

With its cutting-edge voice AI technology, rapidly expanding enterprise partnerships, and revenue acceleration, SoundHound is now recognized as a serious player in the AI space. If the company can follow through on its path to profitability, it has the potential to become a dominant player in the voice-first AI revolution.

However, risks such as scaling challenges, competition from Big Tech, and the need for constant innovation remain. Furthermore, the stock is trading at a premium of 30x forward sales, indicating that it is a high-risk, high-reward AI stock for long-term investors with a strong risk appetite.

On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com



Source link

Tags: BuyPennypowerhouseSOUNstock
ShareTweetShare
Previous Post

SEC charges Georgia’s First Liberty Building & Loan and owner in $140M Ponzi scheme

Next Post

Barbara Corcoran Isn’t Falling for This ‘Propaganda’ — and You Shouldn’t Either If You Want To Build Wealth

Related Posts

edit post
High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

by TheAdviserMagazine
October 22, 2025
0

Despite signs of moderation in overall housing sales and new project launches across major Indian cities, the luxury housing segment...

edit post
Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

by TheAdviserMagazine
October 22, 2025
0

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking...

edit post
YXT regains compliance with Nasdaq’s minimum bid price requirement (YXT:NASDAQ)

YXT regains compliance with Nasdaq’s minimum bid price requirement (YXT:NASDAQ)

by TheAdviserMagazine
October 22, 2025
0

YXT.com Group Holding Ltd. (NASDAQ: NASDAQ:YXT) said on Wednesday it has regained compliance with Nasdaq’s minimum bid price requirement after...

edit post
Tesla reports record sales, record storage—but profit slips as tax-credit rush pulls demand forward

Tesla reports record sales, record storage—but profit slips as tax-credit rush pulls demand forward

by TheAdviserMagazine
October 22, 2025
0

Tesla’s Q3 2025 update reports record vehicle deliveries and record energy storage deployments, alongside higher revenue, but earnings pressure persisted...

edit post
As national debt accelerates to  trillion, watchdog warns it’s ‘no way for a great nation like America to run its finances’

As national debt accelerates to $38 trillion, watchdog warns it’s ‘no way for a great nation like America to run its finances’

by TheAdviserMagazine
October 22, 2025
0

The U.S. national debt has surged past $38 trillion, according to the U.S. Treasury Department, just two months after surpassing...

edit post
Pegasystems signals accelerating Pega Cloud momentum with ACV growth and partner-driven AI innovation (NASDAQ:PEGA)

Pegasystems signals accelerating Pega Cloud momentum with ACV growth and partner-driven AI innovation (NASDAQ:PEGA)

by TheAdviserMagazine
October 22, 2025
0

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking...

Next Post
edit post
Barbara Corcoran Isn’t Falling for This ‘Propaganda’ — and You Shouldn’t Either If You Want To Build Wealth

Barbara Corcoran Isn’t Falling for This ‘Propaganda’ — and You Shouldn’t Either If You Want To Build Wealth

edit post
Social Engineering under the Fourteenth Amendment

Social Engineering under the Fourteenth Amendment

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
EU’s Complex Plan to Unlock Frozen Russian Assets Is Vital for Financing Ukraine

EU’s Complex Plan to Unlock Frozen Russian Assets Is Vital for Financing Ukraine

0
edit post
Why Cohere’s ex-AI research lead is betting against the scaling race

Why Cohere’s ex-AI research lead is betting against the scaling race

0
edit post
3 High-Growth Tech Stocks Poised to Crush Earnings and Fuel Further Rallies

3 High-Growth Tech Stocks Poised to Crush Earnings and Fuel Further Rallies

0
edit post
The 10 best and worst health care funds of the past year

The 10 best and worst health care funds of the past year

0
edit post
The biggest crypto wipeout was led not by bitcoin, but much smaller tokens. Here’s what happened

The biggest crypto wipeout was led not by bitcoin, but much smaller tokens. Here’s what happened

0
edit post
7 Organizational Tips to Make Tax Filing Easy

7 Organizational Tips to Make Tax Filing Easy

0
edit post
High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja

October 22, 2025
edit post
Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets

October 22, 2025
edit post
Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)

October 22, 2025
edit post
The Evolution of Resale and Recommerce in Retail

The Evolution of Resale and Recommerce in Retail

October 22, 2025
edit post
XRP Derivatives Expand on Bybit—Futures and Options Fuel Market Momentum

XRP Derivatives Expand on Bybit—Futures and Options Fuel Market Momentum

October 22, 2025
edit post
Shutdown hits breakaway advisors starting RIAs

Shutdown hits breakaway advisors starting RIAs

October 22, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • High-end housing segment remains hot this Diwali even as overall sales cool off, says Samir Jasuja
  • Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets
  • Tesla targets 3M vehicle production within 24 months as full self-driving expansion accelerates (NASDAQ:TSLA)
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.