AI Voice Innovator Powers Ahead with Triple-Digit Growth and a Golden Cross

30‑Second Take

Why now? SoundHound reported a remarkable 217% year-on-year revenue growth in its Q2 earnings beat as its strategic focus on restaurants, automotive, and enterprise clients continued to pay off.

The significant growth has been aided by successful acquisitions and partnerships with Nvidia and OpenAI, allowing SoundHound to diversify its customer base. 

Once heavily reliant on a small group of clients for the bulk of its revenue, SOUN has reshaped its business to the point where no single customer now contributes more than 10% of sales, potentially setting the stage for a third consecutive quarter of triple-digit growth.

Trade Setup

Time frame: Swing to medium-term
Edge type: Momentum breakout

Snapshot Table

Chart

1-Month Synopsis: The July–August period has been frenetic for SOUN, with the stock gaining 37.42%.

The bulk of these gains was driven by the Q2 earnings release, which, in addition to the revenue spike, included a 42.86% EPS surprise.

The firm’s strongest ever quarter also triggered an upswing in analyst and institutional investor sentiment, along with favorable technical momentum.

Bull Case 

Core thesis: SoundHound is a specialist in conversational (or voice) intelligence. Its independent voice AI platform allows brands to offer personalized conversational experiences to voice-enable products, services, and apps.

Founded in 2005 by a group of Stanford graduates, the voice AI platform allows brands to customize their conversational experience and collect data from each interaction. 

In recent years, SoundHound has pivoted to focus primarily on automotive, enterprise, and restaurant clients. 

Catalysts: With voice AI increasingly embedded in everyday consumer and enterprise experiences—ranging from connected cars to hospitality and retail ordering—SoundHound is well-placed to capture recurring, high-margin revenue streams. 

SOUN has several vital updates in development, including the launch of a new Voice Commerce platform and the deployment of the low-code Amelia 7 agentic AU suite.

This platform will boost enterprise migrations and create new sales opportunities, in tandem with the migration of all customers to SoundHound’s in-house Polaris AI model.

This model is lower cost, with improved speed and accuracy, helping to ensure client retention. 

For prospective investors, SoundHound offers exposure to one of the fastest-scaling segments of AI, underpinned by strategic diversification, powerful alliances, and a proven ability to execute on growth.

Valuation upside: Analyst targets range from a low of $8.00 to a high of $18.00. SOUN is trading comfortably above the average price target of $14.25. 

Technical tailwind: SOUN is forming a golden cross, with the 50-day moving average surpassing the 200-day moving average as a result of the stock’s recent rally.

The MACD line also indicates further bullish momentum.

Investors should keep an eye on the RSI as its current level of 77.3 suggests SoundHound may be overbought and could pull back – this would create a favorable opportunity for entry.

Bear Case 

Key risk: While it achieved record revenue growth in Q1 and Q2, SoundHound’s net losses are also widening, with the latest earnings release confirming a net loss of $74.72M, or around -$0.19 per share.

This imbalance is a classic sign of monetization challenges. 

Monetization at scale must be a key priority for SoundHound as it continues to roll out new platforms, invest in new technology, and target new sectors.

Macro/sector headwinds: AI is sparking a wave of regulatory concern and reform around the world.

This is problematic for companies like SoundHound, which operate globally and must navigate a complex web of various laws and regulations to ensure data and user privacy.

That complexity isn’t just a logistical and operational headache; it also has cost implications that could influence the pace of expansion.

Competitive threat: The threat landscape is diverse, spanning both established voice search and voice tech giants such as Amazon Alexa, Siri, and Microsoft, along with hyper-niche competitors like Cerence, which is currently available in half a billion cars globally.

Cerence is also known to invest heavily in R&D and has been actively poaching SoundHound clients.

The question for SoundHound is how it can overstep the tech giants with a superior offering and monetize its voice tech, while also beating the niche specialists at their own game across multiple market segments. 

Crowded-trade concern: AI stocks like SOUN tend to be heavily shorted.

There’s also a risk of the massive momentum trade imploding and causing a steep price reversal, or of retail traders who flocked to SOUN during its recent rally losing interest when the stock settles and exiting their positions.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (August 13, 2025)

Deep‑Dive Links

• Q2 2025 Earnings Report 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha