SoundHound AI (SOUN) may be battered this year, but analysts still see it as one of the most promising AI companies, armed with an impressive patent portfolio and voice AI products powering multiple industries.
What sets SoundHound apart is its independence. Unlike most voice platforms that rely on Alexa or other Big Tech intermediaries, SoundHound runs on its own technology stack.
That’s a major advantage, according to CPA analyst Mindset for Money, who pointed to the company’s 190 patents and fast-growing proprietary data network.
“The platform enables car makers, restaurants, and IoT providers to offer voice interfaces while keeping full control of their brand and data,” the analyst noted, describing SoundHound as a white-label alternative to big tech ecosystems.
Despite its growing moat in voice AI, the stock has been on a roller coaster.
As InvestorsObserver reported, much of the volatility stems from shifting narratives around AI adoption, and more recently, Nvidia’s exit from its SOUN position.
The chipmaker disclosed in February that it sold its stake at a profit, sparking a 33% drop in SoundHound shares since the news broke.
SOUN is off nearly 50% this year, but in the bigger picture, it’s just a speed bump.
Even after the latest selloff, the stock is still up roughly 140% over the past 12 months, which signals investors still see long-term potential in SoundHound’s proprietary voice AI platform.
Bearish headlines mask strong financials
Behind the bearish headlines, SoundHound’s financials remain strong for a rising AI company.
In Q1 2025, it posted a record 151% year-over-year revenue jump to $29.1 million, thanks to exploding demand for its voice-enabled Agentic AI platform.
More important, the revenue growth is broadly distributed with no single customer accounting for more than 10% of sales, another signal of wide adoption of its technology across industries.
Profitability is still out of reach for now, but management has said it expects to hit adjusted EBITDA breakeven by the end of 2025.
Analysts forecast Q2 revenue of $32.88 million, which would mark a 145% year-over-year gain and keep momentum strong heading into the second half of the year.
SoundHound is set to report its second-quarter earnings on Thursday, with investors watching closely to see if it can defy growing skepticism in AI.
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