SoundHound AI, Inc. SOUN stands at the forefront of the expanding voice-AI and conversational-AI market, which is expected to grow from $17 billion in 2025 to nearly $50 billion by 2031. Its addressable backlog of $1.2 billion and a massive total addressable market of $140 billion suggest considerable runway for revenue growth.
The company’s diversified vertical strategy reduces risk by spreading exposure across automotive, restaurant, healthcare, financial services and customer support. Its proprietary Polaris models, strategic acquisitions and integration success provide sustained competitive advantages. In addition, SoundHound’s growing visibility, driven by the rollout of its Amelia 7.0 autonomous AI agents and partnerships with auto OEMs and enterprise clients, cements its position as a voice-AI leader.
SoundHound, which is part of the Zacks Computers – IT Services industry, currently carries a Zacks Rank #3 (Hold). It reported second-quarter 2025 revenues of $42.68 million on Aug. 7., beating the Zacks Consensus Estimate $33.03 million by 29.2%. It also posted a loss of 3 cents per share, which is much narrower than the Zacks Consensus Estimate loss of 6 cents. The company also revised its full-year 2025 revenue guidance upward to a range of $160-$178 million, signaling continued momentum. Nonetheless, investors should weigh these positives against continued GAAP losses, elevated expenses and stock price volatility. One thing going in favor of the stock is its very low price range of $12.56 as of Aug. 22.
SoundHound’s platform is processing almost 3 billion queries per quarter, a testament to expanding deployment and usage across verticals. The company has broadened its customer base beyond automotive into restaurants, healthcare, financial services and customer support, fueled by strategic acquisitions and successful integrations of targets such as Amelia AI and others.
Over the past year, SOUN’s stock has soared 151.2% compared with its Zacks Peer Group’s advance of 83.6%. BigBear.ai Holdings, Inc. BBAI and Evolv Technologies Holdings, Inc. EVLV are two of its peers from the same space. BigBear has a Zacks Rank #4 (Sell), while Evolv carries a Zacks Rank #5 (Strong Sell).
Bottom Line
To sum up, SoundHound AI’s explosive revenue growth, expanding enterprise footprint and strategic positioning in a high-growth sector make it a compelling growth-oriented investment. That said, the lack of profitability and high valuation mean it may be best suited for investors who can tolerate elevated risk for the potential of outsized long-term returns.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
