SoundHound AI Stock Will Beat the Market in 2025—and potentially beyond. The pure‑play voice‑AI company is on track to nearly double its revenue this year to around $165–170 million, a blistering 95%–100% annual growth rate. This growth is driven by strong, long-term partnerships with global car makers like Hyundai, Kia, Mercedes-Benz, and Stellantis. It also includes leaders in fast food and healthcare, like Casey’s General Stores and Chipotle.
Using its unique Speech-to-Meaning technology (Houndify) and new AI tools like Amelia 7.0 and in-car “brand personalities,” SoundHound AI will outperform the market. It focuses on important industries like cars, restaurants, and call centers, driven by strong business partnerships.
Although a small-cap company, SoundHound AI has over $1.2 billion in booked contracts, well-known product wins, and a Total Addressable Market of about $140 billion (Source). Some analysts are cautious, but optimistic predictions like Wedbush’s $22 target show a possible 80% increase from today’s stock price ($12.70).
All about SoundHound AI
SoundHound AI (NASDAQ: SOUN), started in 2005 and based in Santa Clara, California, focuses on conversational AI and voice recognition. The company holds over 250 patents in voice AI and has more than 700 employees working on voice technology for devices and businesses.
Their technology is used in many areas:
- Cars: Voice assistants in vehicles from Hyundai, Kia, and Mercedes-Benz.
- Restaurants & Stores: AI voice ordering at Chipotle, Casey’s General Stores, and White Castle.
- Healthcare & Call Centers: Custom voice systems for booking appointments, virtual helpers, and more.
With the Houndify platform and new tools like Amelia 7.0, businesses have more options than ever—another reason why SoundHound AI stock will beat the market in voice AI innovation.
Market of SounHound AI
SoundHound AI (NASDAQ: SOUN) operates in the fast-growing artificial intelligence field, focusing on voice AI technology. With a market value of around $5 billion, it is much smaller than big AI companies like Nvidia and Palantir. Still, SoundHound gained a lot of attention in 2024 when its stock jumped over 800%, beating even Nvidia’s strong ~188% rise. (Source)
However, 2025 has been a different story. In the first half of the year, SoundHound’s stock fell by approximately 45%, in stark contrast to the S&P 500’s gain of around 5% and the broader tech sector’s strong performance. (Source)
| Metric | SoundHound AI | Tech Sector (e.g., XLK) |
| Market Cap | = $5 B (MarketBeat, StockAnalysis) | XLK: $260+ per share |
| P/S Ratio | ~38–48× (24/7 Wall St., StockAnalysis) | Broad sector P/S near 10–15× historically |
| Profitability | Unprofitable; ~‑184% net margin (MarketBeat, 24/7 Wall St.) | Many tech leaders are profitable; exceptions exist |
| Growth Rate | Q1 revenue +151% YoY to $29 M; forecast ~97–100% full year (AInvest) | AI-trailing ETF growth strong, but slower |
Despite a premium valuation and lack of profitability, many believe SoundHound AI stock will beat the market as it scales. SoundHound’s valuation is far richer than typical tech/AI stocks—a P/S of ~40–48× compared to sector averages. It is still unprofitable, burning cash with negative margins despite revenue momentum.
Why SoundHound AI Could Outperform?
SoundHound AI has the potential to outperform the market due to its cutting-edge voice AI technology, experienced leadership, and growth. Its proprietary Speech-to-Meaning engine and advanced language models set it apart from competitors, with adoption across 25+ languages and key partnerships with Hyundai, Stellantis, Lucid, and NVIDIA. Co-founder Majid Emami and CFO Nitesh Sharan bring strong technical and financial expertise.
The company posted 151% year-over-year revenue growth in Q1 2025 and expects up to $177M in full-year revenue, supported by a $1.2B backlog. Expansion into drive-thrus and enterprise AI offers further upside.
However, risks remain. SoundHound is still unprofitable and trades at a high valuation, making it sensitive to market shifts. Compared to peers like BigBear.ai or Cerence, it leads in growth but trails in profitability.
Despite competition from tech giants, analysts at Zacks and Wedbush highlight its position in a $140B market. With a clear growth trajectory and expanding footprint, SoundHound AI could offer long-term gains for investors betting on voice-first AI.
Case Studies or Real Results
Real-world execution highlights why SoundHound AI stock will beat the market. SoundHound AI has already shown promising traction in real-world applications that reflect both commercial viability and long-term growth potential. For example, Hyundai and Mercedes-Benz have integrated SoundHound’s voice AI into their infotainment systems, demonstrating real use cases at scale. These partnerships validate the company’s technology and its revenue-generating capabilities.
Since SoundHound AI went public through a SPAC merger in 2022, its stock has had several sharp rises after big partnership news or AI industry booms. It often did better than the overall market during these times. Tests comparing SoundHound AI to the Nasdaq 100 show that during AI news in early 2023 and the first quarter of 2024, the stock gave short-term gains of over 30%, while the index only rose by single digits.
These results show that when things come together, like new business deals or excitement about AI in the industry, SoundHound AI has the potential to beat the market by a large margin.
Will SoundHound AI Stock Beat the Market?
With visionary tech, expanding clients, and proven growth, SoundHound AI stock will beat the market if management continues to execute and sector trends remain favorable. While risks like negative margins and competition persist, differentiation and high-profile wins fuel optimism.
If it continues to meet or beat expectations, there’s a strong reason to believe that SoundHound AI stock will beat the market in the coming years.
