“SoundHound AI (SOUN) trades near $7.46, well below its 52-week high of $22.17, amid ongoing losses but robust revenue growth exceeding 100% in recent periods. Analysts largely favor a Moderate Buy rating with an average price target around $16, implying over 100% upside potential, driven by agentic AI advancements and sector expansions in automotive, restaurants, and beyond. However, risks include persistent cash burn, profitability delays until potentially late 2026, and high volatility in the AI sector. The stock presents a speculative opportunity for growth-oriented investors betting on voice AI dominance, balanced against near-term execution challenges.”
Should You Buy SoundHound AI Stock While It’s Under $8?
SoundHound AI has positioned itself as a key player in voice and conversational AI, focusing on agentic systems that enable more autonomous, intelligent interactions across industries. The company’s technology powers voice assistants in vehicles, drive-thru ordering systems for quick-service restaurants, customer service platforms in banking, and emerging applications in smart devices. Recent developments emphasize its Polaris AI model and integrations that blend voice with vision capabilities, demonstrated at major tech events.
The stock has experienced significant pullback, currently hovering around $7.46 after closing flat in recent sessions. This level sits close to the lower end of its 52-week range, which spans from $6.52 to $22.17. Trading volume remains elevated, often exceeding 19 million shares daily, reflecting continued investor interest despite the decline.
Financial performance shows strong top-line momentum. Trailing twelve-month revenue stands at approximately $148.4 million, marking a substantial increase from prior years. In the most recent reported quarter (Q3 2025), revenue reached $42 million, up about 68% year-over-year. For the first nine months of 2025, revenue more than doubled compared to the same period previously. Full-year 2025 guidance has been raised to between $165 million and $180 million, signaling confidence in sustained hypergrowth.
Looking forward, analyst estimates project 2026 revenue in the range of $165 million to $230 million or higher in some cases, with consensus around $167-168 million. This implies continued expansion, potentially at 38% or more from 2025 levels. On the bottom line, the company remains unprofitable, with trailing EPS negative and ongoing net losses. However, management has outlined a path toward adjusted EBITDA breakeven by late 2026, supported by a solid cash position and minimal debt.
The valuation reflects the growth narrative but also the risks. With a market capitalization near $3.13 billion, the forward price-to-sales multiple based on 2026 estimates sits in a reasonable zone for a high-growth AI firm. This contrasts with earlier peaks when enthusiasm pushed multiples much higher.
Analyst sentiment leans positive. Consensus from multiple firms rates the stock as Moderate Buy to Strong Buy. Average 12-month price targets cluster around $16, with highs reaching $26 and lows at $11. This suggests potential upside of 115% or more from current levels. Recent updates from firms highlight the company’s accelerating adoption in enterprise settings and its edge in voice AI applications.
Key opportunities include expansion into agentic AI, where systems can handle complex, multi-step tasks independently. Partnerships in automotive (in-car voice experiences), hospitality (faster ordering), and financial services (conversational banking) continue to build backlog and recurring revenue streams. The shift toward profitability, if achieved, could remove a major overhang and catalyze re-rating.
Challenges persist. Cash burn continues as the company invests heavily in R&D and sales efforts to scale. Losses have widened in absolute terms amid rapid expansion. The AI sector faces broader sentiment swings, with concerns over hype versus sustainable monetization. Competition from larger players in cloud AI and voice tech adds pressure. Upcoming Q4 2025 earnings, expected soon, will provide critical updates on progress toward guidance and any adjustments to 2026 outlook.
For investors, the sub-$8 price represents a potential entry point for those with high risk tolerance. The combination of triple-digit revenue growth historically, raised guidance, and analyst optimism points to meaningful upside if execution continues. Conservative portfolios may wait for clearer profitability signals or reduced volatility. Speculative accounts could view this as a dip-buying opportunity in a promising voice AI specialist.
| Metric | Value | Notes |
|---|---|---|
| Current Price | ~$7.46 | As of mid-February 2026 |
| Market Cap | ~$3.13B | Shares outstanding ~388M |
| 52-Week Range | $6.52 – $22.17 | Significant pullback from peak |
| TTM Revenue | $148.4M | +120% YoY growth |
| 2025 Revenue Guidance | $165M – $180M | Raised from prior expectations |
| 2026 Revenue Consensus | ~$167M+ | Implies continued strong growth |
| Consensus Price Target | ~$16 | 115%+ potential upside |
| Analyst Rating | Moderate Buy | Majority Buy ratings |
The decision hinges on belief in SoundHound’s ability to convert growth into profitability while maintaining its niche leadership in conversational AI.
Disclaimer: This is for informational purposes only and not investment advice. Stock markets involve risk, including potential loss of principal. Conduct your own research before making decisions.