SoundHound AI (SOUN) stock jumped this week as investors piled back into the agentic AI trade, marking a sharp reversal after months of choppy trading.
The stock surged as much as 18% on Tuesday before ending the day up nearly 12%. It rose another 1.5% on Wednesday, pushing its monthly gain to more than 28%.
There was no major news driving the rally, but analysts have turned more bullish on the company thanks to its expanding list of partners in cars, restaurants, and smart devices.
Big names like Hyundai, Kia, Honda, Qualcomm, Vizio, and Oracle’s food division are all working with SoundHound to bring voice-powered tech to their products.
Big market, small footprint for now
Although SoundHound’s stock has taken a beating in recent months, the company is operating in a fast-growing conversational AI market that analysts estimate could hold as much as $140 billion in untapped value.
That number reflects a broader shift.
Companies are now dedicating bigger budgets to conversational AI, not just to boost customer engagement but to cut long-term costs and ride the wave of rapid tech advancement.
If that estimate proves accurate, SoundHound is still capturing less than 1% of the market, based on its $1.2 billion order backlog at the end of 2024. That backlog had grown 75% year-over-year.
SoundHound isn’t the biggest player in the space, but it “stands out for its exceptional performance on both innovation and growth indices,” said Nitin Manocha, an analyst at Frost & Sullivan.
He also flagged healthcare — a market often overlooked in the AI race — as a strong potential growth area for the company.
After a strong 2024, SoundHound carried the momentum into Q1, reporting $29.1 million in revenue spread evenly across several customers. That marked a 151% increase over the same quarter a year earlier.
The company ended the quarter with $246 million in cash and no debt.
SoundHound is expected to report second-quarter earnings early next month. That update is likely to reinforce its full-year forecast, which calls for $157 million to $177 million in revenue, roughly double what it brought in last year.
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