SoundHound AI Just Crushed Expectations—Is It the Next Big AI Stock?

SoundHound AI, Inc. (NASDAQ: SOUN) saw its stock surge after reporting record-breaking fourth-quarter earnings, surpassing Wall Street expectations. The AI-driven voice technology company also raised its revenue forecast for 2025, sparking optimism among investors and analysts.

Impressive Q4 Performance

The company posted $34.5 million in Q4 revenue, a staggering 101% increase from the same period last year. This figure exceeded analyst predictions, which had projected $33.7 million. For the full year, SoundHound AI generated $84.7 million in revenue, reflecting an 85% year-over-year growth.

Gross margins were also strong, coming in at 39.9% on a GAAP basis and 52.1% on a non-GAAP basis. Despite an adjusted EBITDA loss of $16.8 million, investors remain bullish on the company’s long-term growth potential.

Upgraded Revenue Forecast Sparks Optimism

Building on its strong performance, SoundHound AI has raised its 2025 revenue outlook to $157 million to $177 million, slightly above its previous projection of $155 million to $175 million. Wall Street analysts had estimated $165.3 million, making the company’s revised forecast a positive surprise.

Stock Price and Analyst Ratings

Following the earnings report, SoundHound AI’s stock jumped nearly 12% in after-hours trading. Analysts are taking notice, with H.C. Wainwright maintaining a “Buy” rating and setting a price target of $26.00.

Currently, seven Wall Street analysts hold a “Hold” consensus rating on the stock, with an average price target of $12.86—representing a potential upside of nearly 25% from its current trading price.

Expanding Innovation in AI Technology

SoundHound AI continues to expand its presence in the AI space, recently unveiling an in-vehicle voice commerce platform that allows drivers to order food from their cars. This cutting-edge innovation is expected to fuel further growth.

The company’s technology is already being used across various industries, including call centers, restaurant drive-thrus, automobiles, and televisions, highlighting its broad market potential.

With a strong financial performance, ambitious revenue projections, and groundbreaking AI applications, SoundHound AI is positioning itself as a major player in the rapidly evolving voice technology market. Investors and analysts alike will be watching closely to see how the company continues to build on this momentum.