The Low-key AI Stock with Tremendous Growth Potential

30‑Second Take

Why now? SoundHound stock has taken a hit over the last few months, making the current price attractive for investors looking for a bargain. Although SOUN stock is down 32.91% this year, sales are booming, use cases are expanding, and sales estimates call for a 91% increase for the fiscal year, with an EPS growth of 85%.  Prices are already rebounding from the lowest point (set in April), so now’s the time to move before the recovery is complete.

Trade Setup

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

Snapshot Table

Chart

5-Day Synopsis: 

Trading has been relatively steady over the last week, except for a sharp pullback on Thursday, June 05. SOUN stock slumped to a low of $9.37 amid a wider market decline triggered by a public Trump-Musk disagreement, news on further trade talks, and a looming employment report. Despite the dip, SOUN quickly recovered the lost ground the following day to end the week on a more stable note.

Bull Case 

Core thesis: Founded in 2005, SoundHound is an independent voice AI platform for voice-enabled products, services, and apps. It works with brands across sectors, including healthcare, automotive, and retail, giving each the ability to deliver customers high-quality, natural conversational experiences in more than 25 languages.  

Catalysts: SOUN is very much an under-the-radar stock, but for investors keen to buy the dip, there’s a lot of activity behind the scenes to notice. For example, the global voice agent market is expected to grow at a compound annual growth rate of 34.8% through 2035. This provides SoundHound with ample opportunity to expand—indeed, it says it expects to grow its revenue by 91% in 2025.

Recent sales figures have already reflected wider adoption, with some analysts describing its subscriber base as ‘growing like a weed.’ While automakers already use voice AI tools, new research suggests that 80% of U.S. drivers now prefer ordering food via an in-car assistant versus waiting in a drive-thru, creating huge scope for expansion in just a single use case. The Q2 earnings report also revealed notable expansions across other sectors with new client acquisitions and wider adoption amongst existing clients.

Valuation upside: The average analyst price target is $11.81. The high is $18.00. 

Technical tailwind: SOUN stock is trading just above the key resistance level of $10.00. If it maintains this position, we could see a return to some bullish momentum.

Bear Case 

Key risk: SOUN stock is exhibiting growing pains with price volatility. As a growth-focused firm, SoundHound has yet to deliver consistent profits and continues reinvesting aggressively, which could put profitability out of reach for a while. 

Macro/sector headwinds: AI stocks like SOUN face a number of headwinds, including regulatory pressures which could increase operational costs, and trade disputes which could limit access to key markets, impacting revenue streams.   

Competitive threat: SoundHound faces fierce competition from Cerence, a voice-recognition tool developed specifically for the automotive sector—a key market for SOUN. If it can develop a more sophisticated or tailored solution, SoundHound could risk losing key clients to its rival.

Crowded-trade concern: AI stocks are volatile and subject to rapid shifts in sentiment. At the mercy of new legislation, security concerns and market access, any shift in policy or geopolitical tension can spark a pullback.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (June 06, 2025)

Deep‑Dive Links

• Q1 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