SoundHound (SOUN) stock is approaching a key technical breakout, but fresh developments at Taco Bell may serve as a canary in the coal mine for the company’s ambition to dominate the voice-AI market.
After a difficult stretch in 2025, SOUN stock have regained momentum, climbing nearly 12% over the past month.
Economist and technical analyst Donald Dean cautioned it’s still too early to declare a full recovery, but pointed out the stock is making higher lows, a constructive technical setup that signals a potential return to upward momentum.
$SOUN SoundHound - Higher Lows
undefined Donald Dean (@donaldjdean) August 28, 2025
Price Targets: $14.00, $16.62
SOUN is in the upward channel and is near the support trendline. The last breakout failed, but higher lows are in place.
Price targets are $14.00 at the volume shelf and $16.62 to challenge previous resistance. pic.twitter.com/fLtAtNPhVD
Currently trading in the mid-$12.00 range, Dean sees a breakout above $14.00 as the next trigger for the rally to extend.
Technical analyst Tiger Line Trading likewise noted that SoundHound is attempting to break out of a falling wedge pattern, a classic formation often interpreted as a bullish reversal.
$SOUN TRYING TO BREAKOUT pic.twitter.com/r5axZfPePA
undefined Tiger Line Trading (@TigerLineTrades) August 28, 2025
The improving chart action follows a blowout second quarter, in which the company reported $42.7 million in revenue — up 217% year-over-year — while narrowing losses to $0.03 per share.
Management also raised full-year revenue forecasts to a range of $160 million to $178 million, which implies growth of around 99% year-over-year.
Fall the bullish signals, investors remain cautious amid reports that some restaurant chains no longer see voice AI as the clear path to efficiency and better customer service.
Voice AI still has kinks to work out, especially at the drive-thru
A significant share of SoundHound’s early momentum has come from restaurant chains, which represent a major slice of its customer base, particularly in quick-service, phone, and drive-thru ordering.
Voice AI was pitched to restaurants as a game-changer: streamlining drive-thru efficiency, lowering labor costs, improving order accuracy, boosting upselling, and enabling 24/7 service.
However, Taco Bell is now rethinking the role of voice AI in its drive-thrus after mixed customer feedback. The company is still experimenting with how to get the technology right.
“We’re learning a lot, I’m going to be honest with you,” Dane Mathews, Taco Bell’s chief digital and technology officer, told The Wall Street Journal.
“I think like everybody, sometimes it lets me down, but sometimes it really surprises me,” he said.
While not abandoning the initiative, Taco Bell says it will review more than two million AI-processed customer orders to better understand pain points and determine how best to move forward.
In the meantime, SoundHound is still betting big on restaurant brands, but as Mathews noted, the technology is “really, really early.”
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