Can SoundHound stock (SOUN) hit $26 after reporting record revenue?

SoundHound AI (SOUN) delivered a record-breaking fourth quarter, reporting $34.5 million in revenue—a 101% year-over-year jump that beat Wall Street estimates

The company also raised its full-year revenue outlook for 2025 to a range of $157 million to $177 million, signaling confidence in its continued expansion. Following the release, the stock surged 13% in after-hours trading.

The rebound offers the AI voice company a reprieve after a rough month when the stock had dropped about 35%. Despite the upbeat numbers, SoundHound remains unprofitable, posting a net loss of $19 million for the quarter.

Analysts remain divided on the stock, with a consensus rating of “moderate buy” and a target price of $14.50. Some see significant upside potential—with one analyst predicting that SOUN could nearly triple to $26 within a year.

Others, however, caution against its high valuation and external risks.

Can top-line growth trickle down to the bottom line?

CEO Keyvan Mohajer described 2024 as a “breakthrough year” for the company, citing key customer wins, expanded partnerships, generative AI advancements, and strategic acquisitions.

Analysts agree that SoundHound’s partnerships in the restaurant and automotive industries, along with its expansion into China and India, provide strong growth opportunities.

However, concerns remain about whether the company can turn its voice-first AI strategy into sustainable profits. Before earnings, analysts were split, with two rating the stock a "strong buy" and the other two assigning it a "hold."

The range of forecasts goes from a low of $8 to a high of $26."

SOUN stock is still at the mercy of AI giants

SoundHound is still reeling from a nearly third drop due—thanks to the fallout after its break up with Nvidia (NVDA).

The AI chip giant had previously invested in SoundHound, helping fuel a meteoric rise in the stock last year despite ongoing losses. However, when Nvidia announced it was selling its entire SoundHound stake, shares tumbled.

That, along with a lackluster CES presentation, accelerated the stock’s decline heading into earnings. Even after the post-earnings rally, the stock remains highly volatile:

Without Nvidia in the picture, SoundHound’s ability to maintain momentum now rests on its execution. Analysts caution that while internal financials look strong, investors shouldn't ignore external forces shaping the stock’s performance.