SoundHound’s AI Voice Technology Gains Momentum on Wall Street Amidst Strong Growth Prospects

Santa Clara, CA – SoundHound, an AI voice technology company, is increasingly gaining attention on Wall Street, driven by strong sales growth and expanding business opportunities in voice-enabled devices and customer service applications. The company, which was relatively quiet on the stock market until early 2024, saw a dramatic surge after Nvidia (NVDA) made a strategic investment in the firm. 

SoundHound’s Strategic Business Pillars 

SoundHound operates primarily through three key pillars, each capitalizing on its voice AI technology to tap into large markets. 

1. Voice AI for Physical Products: This pillar focuses on integrating voice capabilities into everyday products. SoundHound enables a wide range of Internet of Things (IoT) devices, such as TVs, speakers, and even kitchen appliances, to become voice-enabled. The company has secured partnerships with brands like Hyundai, Kia, and Vizio to bring its technology into cars and televisions. 

2. AI for Customer Service: The second pillar centers around providing voice AI agents to improve customer service in sectors like retail, insurance, and healthcare. SoundHound’s AI is already used in drive-thrus, call centers, and automated phone systems, replacing traditional human agents with faster, more efficient AI solutions. This market is seeing massive growth as businesses look for ways to cut costs and enhance customer experiences. 

3. Emerging Opportunities in Voice-Enabled Commerce: A third pillar is beginning to take shape as SoundHound looks to link its technology across various devices for seamless user experiences. With its presence in cars, restaurants, and or services, the company envisions users using voice AI to schedule appointments, buy tickets, or even place orders in advance at drive-thrus, creating opportunities for voice commerce. 

Impressive Revenue Growth, But Not Profitable Yet 

While SoundHound has posted strong growth, averaging 74% year-over-year revenue increases, the company has yet to achieve profitability. Analysts predict losses will continue into 2025. However, the company is optimistic about turning a profit by the end of 2025, with revenue projected to reach around $165 million in 2025, marking a significant jump. 

Market Competition and Investor Confidence 

SoundHound faces stiff competition from established players like Cerence in the automotive sector and tech giants such as Alphabet (Google) and Amazon in the broader voice AI market. Despite this, the company continues to secure new clients, including major restaurant chains like Chipotle, Applebee’s, and Panda Express, reinforcing demand for its solutions. 

D.A. Davidson analyst Gil Luria has expressed confidence in SoundHound’s future, reiterating his “Buy” rating on the company’s stock after its third-quarter earnings report, which exceeded expectations. Luria has set a price target of $9.50 per share, signaling optimism about the company’s potential growth trajectory. 

As demand for AI-powered solutions increases, particularly in industries like automotive and customer service, SoundHound’s position in the voice AI space makes it a notable contender for future growth and profitability.