Can SoundHound AI Stock Hit $26 in 2025?

Barchart

Shares of SoundHound AI surged around 836% in 2024. The voice artificial intelligence (AI) technology leader benefitted from rising demand for its offerings and significant growth opportunities across key verticals such as automotive, restaurants, and customer service.

While SoundHound stock has gained substantially, at least one Wall Street analyst expects shares to reach $26, the Street-high price target. This represents about 45% upside from its last closing price of $17.98 on Jan. 7. Let’s dive deeper into SOUN stock’s outlook for 2025.

Sustained Momentum in Revenue Growth

SoundHound operates in a $140 billion total addressable market with high barriers to entry, giving it a strong competitive edge. Its diversified customer base is reducing reliance on one-time deals, creating a more predictable and SaaS-like revenue stream.

SoundHound has been growing rapidly. Since 2020, the company’s revenue has increased at a CAGR of 51%. In its most recent quarter, it reported $25.1 million in revenue, representing 89% year-over-year growth. Moreover, its top line surpassed Wall Street estimates of $23 million.

Looking ahead, SoundHound’s growth trajectory appears sustainable as it scales its operations and deepens its presence across multiple high-growth markets. As a leader in enterprise conversational AI, SoundHound is embedding its AI-driven solutions into hundreds of enterprise brands, creating a strong ecosystem of customers and partners. Its diverse portfolio is expanding, and it’s poised to benefit from a broader addressable market driven by the increasing adoption of AI.

Expanding Opportunities in High-Growth Markets

SoundHound operates in markets projected to grow substantially in the coming years, creating a dual growth engine, which includes its own rapid expansion and the explosive growth of its target markets.

The company’s automotive portfolio is thriving, with strong traction in the electric vehicle (EV) sector. In the third quarter of 2024, it secured a significant deal with an up-and-coming EV manufacturer in the Middle East and strengthened its presence in China and India.

Additionally, SoundHound has expanded its AI agent customer service portfolio, making headway into industries like financial services, healthcare, and retail. One of the world’s largest payment card services companies recently extended its contract for another three years, highlighting solid demand for SoundHound’s technology.

SoundHound’s solutions cater to businesses of all sizes, from large enterprises to small and medium-sized businesses (SMBs). For example, its smart answering services have gained traction with SMBs, representing a $30 million market in North America alone.

SoundHound continues to innovate in the restaurant sector with AI-driven solutions for drive-thru operations, phone ordering, and employee assistance. These offerings are expanding into new brands and deepening relationships with existing customers, positioning it well to accelerate revenue growth.

SoundHound’s strategic acquisitions and partnerships are unlocking significant revenue synergies. The company is cross-selling and upselling its products across verticals, further scaling its automotive, AI agent, and restaurant businesses.

Thanks to the ongoing momentum in its business, its cumulative subscriptions and bookings backlog — a key indicator of customer activity — continues to grow. This metric highlights SoundHound’s ability to secure long-term contracts and deepen its relationships with key partners.

While SoundHound is growing rapidly and focusing on capturing growth opportunities, it is also focusing on driving efficiencies and moving towards delivering sustainable earnings.

The Bottom Line on SoundHound AI Stock

SoundHound is expanding its total addressable market through innovation and new product offerings. The company’s ecosystem of customers and partners is growing, and its technology is becoming increasingly integrated into industries worldwide. These factors position SoundHound well for sustained growth in 2025 and beyond.

With its growing scale, innovation, and solid growth opportunities, SoundHound could hit the $26 Street-high price target in 2025.

However, analysts remain cautiously optimistic given the recent rally in SOUN stock. Wall Street has a “Moderate Buy” consensus rating on SoundHound stock.

On the date of publication, Amit Singh 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. For more information please view the Barchart Disclosure Policy here.

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Mega-cap AMD, J&J lead market cap stock movers on Wednesday

Investing.com

Wednesday's market showcases significant movements among stocks, with mega-cap and large-cap categories experiencing notable fluctuations. Investors are responding to various news and market factors, influencing intra-day stock performance across the board. Here's a look at some of the key stock movers from the day's trading session.

Mega-Cap Movers:

Johnson & Johnson (NYSE:JNJ); J&J gains FDA Fast Track for Alzheimer's treatments: -2.37%
Merck & Co (NYSE:MRK); China approves Gardasil for male HPV prevention: -1.74%
Advanced Micro Devices (NASDAQ:AMD): -4.88%

Large-Cap Stock Movers:

dMY Technology Group III (IONQ): -40.9%
eBay Inc (NASDAQ:EBAY): +10.56%
Mobileye Global (NASDAQ:MBLY): -10.92%
Reinvent Technology Partners Y (AUR): -9.32%
Edison Intl (NYSE:EIX): -6.55%
FBTC NYSE (FBTC): -1.73%
Dollar Tree Inc (NASDAQ:DLTR): -4.97%
Moderna (NASDAQ:MRNA): -6.77%

Mid-Cap Stock Movers:

Rigetti Computing Inc (NASDAQ:RGTI): -44.2%
DPCM Capital (QBTS): -45.13%
Quantum (NASDAQ:QMCO) Computing OTC (QUBT); Quantum Computing, Inc. Announces Private Placement of Common Stock for Proceeds of $100 Million: -44.2%
CF Acquisition Corp VI (RUMBW): -17.41%
SoundHound AI (NASDAQ:SOUN): -14.15%
AAR Corp (NYSE:AIR); AAR Corp shares jump 5% on strong Q2 results: +8.7%
Pony Ai Inc (PONY); Pony.ai Plans to Provide Driverless Services at Hong Kong International Airport: -9.08%
AltC Acquisition (OKLO): -10.17%
Centessa Pharmaceuticals ADR (CNTA); Centessa Pharmaceuticals appoints new Chief Medical (TASE:PMCN) Officer: -9.93%
Nuscale Power (SMR): -11.12%

Small-Cap Stock Movers:

Sana Biotechnology (SANA); Sana reports success in diabetes cell therapy without immunosuppression: +195.76%
Vir Biotechnology Inc (NASDAQ:VIR); Vir Biotechnology Announces Encouraging Safety and Efficacy Data: +59.82%
Avita Medical Ltd (NASDAQ:RCEL); AVITA Medical Updates Expected Revenue, Provides Financial Guidance: -36.77%
Phoenix Biotech Acquisition (CERO): -23.9%
Centricus Acquisition (ARQQ): -33.22%
AngioDynamics (NASDAQ:ANGO); AngioDynamics Reports Fiscal Year Results: +34.52%
Schnitzer Steel (NASDAQ:RDUS); Radius Recycling Reports Financial Results: -24.85%
Richtech Robotics (RR): -21.48%
CMI Acquisition LLC (SKYT): -20.98%
Atomera Inc (ATOM): -21.31%

For real-time, market-moving news, join Investing Pro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Nebius Group (NBIS): A Small-Cap Backed by NVIDIA

MarketBeat

SoundHound AI, Inc. Warrant

-20.99%

Network and data net system abstract background.Structure and connection.3d illustration

Several small and mid-cap companies have captured investor attention over the previous year thanks to NVIDIA’s disclosed investments in these firms. One recent standout is Nebius Group , a technology company now drawing comparisons to other NVIDIA-backed successes like SoundHound AI , which surged over 800% in the past year.

Despite this connection, Nebius has faced challenges, with its stock down almost 20% from its 52-week high in December. But does NVIDIA’s involvement signal a buying opportunity? Let’s dive deeper.

What Is Nebius Group?

Nebius Group N.V. is a Netherlands-based technology company specializing in AI-driven solutions for businesses and consumers. Its flagship offerings include Nebius AI, a cloud platform designed for AI deployment and machine learning; Toloka AI, which focuses on generative AI applications like model training and data generation; Avride, a provider of autonomous vehicle solutions for logistics and ride-hailing; and TripleTen, an EdTech platform that equips learners with STEM and tech skills.

Previously known as Yandex N.V., the company underwent a transformation following sanctions imposed on Russia after its invasion of Ukraine. Yandex divested its non-Russian assets, leading to Nebius’s independence and subsequent Nasdaq listing in October 2024.

Following its debut, Nebius raised $700 million through a private placement involving NVIDIA and Accel Ventures.

Why Is NVIDIA Interested?

NVIDIA’s investment aligns with Nebius’s strong growth trajectory and its focus on AI infrastructure. In Q3 2024, Nebius reported revenue of $43.3 million, an almost 200% increase compared to the previous quarter. The AI infrastructure segment demonstrated exceptional growth, expanding nearly 300% quarter-on-quarter and almost 650% year-on-year, showcasing the company's rapid advancements in its core AI offerings.

The AI cloud business is on track to hit an annualized run rate of $120 million, while forward guidance estimates revenues between $750 million and $1 billion by 2025.

Nebius’s strategic initiatives include expanding its data center footprint. It recently launched a GPU-equipped facility in Kansas City and plans to open another U.S. cluster by 2025, bolstering its AI infrastructure capabilities. With partnerships like its collaboration with Uber Technologies for autonomous vehicles, Nebius is leveraging its diverse portfolio to drive innovation.

The NVIDIA Factor and Citron’s Bullish Call

NVIDIA’s support has sparked optimism, further amplified by Citron Research’s endorsement of Nebius as a potential “AI Wall Street darling.” Citron sees parallels between Nebius and competitors like CoreWeave, projecting the stock could reach $60 per share, offering significant upside from current levels.

Nebius plans to invest $1 billion in AI infrastructure by 2025, focusing on renting capacity to enterprises scaling their AI operations. This capital commitment reflects its ambition to establish a strong foothold in the rapidly growing AI sector.

Why Nebius Is a Unique Play in AI Infrastructure

While NVIDIA’s backing and Citron’s bullish outlook are compelling, investing in Nebius involves risks. The company faces stiff competition from established players. However, its financial strength, bolstered by almost $2.3 billion in cash and rapid revenue growth, positions it as a high-potential opportunity for risk-tolerant investors.

The real potential also lies in Nebius’s ability to leverage its NVIDIA partnership to secure relationships with other industry leaders, such as Advanced Micro Devices and Magnificent Seven tech giants and cloud hyperscalers like Microsoft and Amazon . If successful, Nebius could unlock significant long-term value and immense growth, making it a standout in the AI and tech scene.

Nebius Group offers a unique blend of opportunity and risk for investors seeking exposure to emerging AI infrastructure plays. NVIDIA’s involvement certainly adds an extra layer of intrigue.

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Here are the top 10 December stock buys on Robinhood UK

Investing.com

Investing.com --- As 2025 begins, the landscape of popular stock investments has taken shape, driven by emerging technologies and the companies championing them.

In December, Robinhood (NASDAQ:HOOD) UK users gravitated towards a mix of established names and rising stars, with Tesla (NASDAQ:TSLA) reclaiming its position at the top of the list.

Tesla’s resurgence in popularity reflects its strong performance in the latter part of 2024, bolstered by analyst upgrades and regulatory developments.

The potential easing of restrictions on autonomous driving has rekindled investor enthusiasm for the EV giant.

Meanwhile, Elon Musk’s warning about the end of US consumer EV tax credits casts a shadow over competitors, many of whom remain unprofitable.

Tesla’s ability to weather these challenges while scaling new heights made it a clear favorite among Robinhood UK investors.

Joining Tesla at the forefront of investor interest are companies riding the AI and crypto waves.

MicroStrategy and NVIDIA (NASDAQ:NVDA) maintained their appeal, bolstered by the sustained buzz around digital assets and artificial intelligence.

SoundHound AI (NASDAQ:SOUN) emerged as a notable addition, following a staggering 1,000% surge in its share value over 2024.

However, the meteoric rise of SoundHound AI also raises questions about its valuation. The company’s recent acquisition of Amelia will be critical in determining whether it can deliver on sky-high expectations or face a correction in 2025.

Crypto-centric firms remained prominent, with Bitcoin miner Iris Energy making a mid-table debut. Its dual focus on cryptocurrency and AI services resonated with investors looking to capitalize on these intersecting trends.

Coinbase (NASDAQ:COIN) and MicroStrategy, long-standing names in the crypto sector, also secured their spots in the top 10. This suggests a continued appetite for exposure to digital assets despite market volatility.

The rapid ascent of quantum computing stocks also captured attention. Rigetti Computing saw a dramatic rise in its share price, fueled by breakthroughs like Google’s Willow chip, which has catapulted quantum computing into the spotlight.

Quantum (NASDAQ:QMCO) Computing Inc. joined the list as well, underscoring growing interest in the transformative potential of quantum technologies.

Both companies represent an emerging theme with far-reaching implications for AI, crypto, and broader tech innovation in 2025.

“It’s all about AI, crypto and the emergence of quantum computing among the top buys heading into 2025,” said Robinhood UK’s Lead Analyst, Dan Lane.

While the excitement is palpable, investors face the challenge of balancing enthusiasm with a clear-eyed assessment of these firms’ long-term prospects.

The list was rounded out by Robinhood's own stock, reflecting investor confidence in the platform, as well as Palantir (NASDAQ:PLTR), whose data-centric approach continues to attract attention.

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SoundHound AI Unveils a New Way to Order Take-Out Food. The Stock Is Falling Anyway. — Barrons.com

Dow Jones Newswires

SoundHound AI

-16.44%

SoundHound AI, Inc. Warrant

-20.99%

By Angela Palumbo

SoundHound AI stock was down Tuesday, even after the artificial intelligence voice company unveiled its latest technology at the CES conference in Las Vegas.

SoundHound announced an in-vehicle voice commerce platform on Tuesday. This tech allows for people to conversationally order take-out food from participating restaurants directly through their car, and pay for it. The company has not yet announced which restaurants or car manufacturers they are working with on this.

"What we're introducing here at CES is a seamless way to order your favorite takeout on-the-go using natural speech, completely hands-free from the vehicle," Chief Executive Keyvan Mohajer said in the news release. "And what begins here with food and restaurants will ultimately open up a whole new commercial ecosystem for vehicle and device manufacturers everywhere."

The tech is expected to launch sometime this year.

Despite the news, shares of SoundHound were down 10% Tuesday to $17.84. The S&P 500 was down 0.7% after the Bureau of Labor Statistics said November job openings rose more than expected.

SoundHound stock had a standout year in 2024, soaring 836%. Investors have been excited about the future of voice-technology software powered by AI, which is SoundHound's bread and butter. The company has deployed its voice AI solutions in over 10,000 restaurant locations, where customers can order food normally, and the AI captures what the voice is asking for in real time.

SoundHound was one of many companies to announce new tech at the CES conference this week. Chip giant Nvidia unveiled new gaming graphics cards, Aurora Innovation revealed a partnership with Nvidia to deploy driverless trucks, and Dell Technologies announced a new AI personal computer portfolio.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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