Key Points SoundHound's top-line growth is exploding, but much of this can be credited to recent acquisitions. The voice and speech AI specialist looks likely to continue struggling to generate consistent profits. 10 stocks we like better than SoundHound AI › A good rule of thumb is to avoid hyped-up stocks that have rallied substantially without a corresponding improvement in fundamentals like profitability or cash flow. SoundHound AI (NASDAQ: SOUN) is an excellent example of this concept. Shares t ...

Core Insights - The AI market in 2025 demonstrated resilience, with significant gains in major indices like the S&P 500 and Nasdaq 100, despite moments of volatility [1] - The AI ecosystem extends beyond major players, highlighting the importance of various supporting companies [2] Company Summaries - **Innodata Inc.**: Achieved record revenue of over $62 million in Q3 2025, reflecting a 20% year-over-year growth. The company anticipates a full-year growth of 45% for 2025, with profit margins increasing to 26% [4][6] - **Evolv Technologies Inc.**: Generated $42.85 million in revenue in Q3 2025, marking a 57% year-over-year growth. The company expects annual recurring revenue to grow over 20% in 2026 [7][8] - **Aeva Technologies Inc.**: Experienced revenue growth from $800,000 in Q4 2023 to $5.5 million in Q2 2025, despite a dip to $3.5 million in Q3 2025. The company has secured a deal to be the exclusive LiDAR provider for a major European OEM [11][13] - **Soundhound AI Inc.**: Revenue soared over 120% year-over-year in 2025, with narrowing losses and a path to profitability in 2026. The stock has faced volatility but shows signs of potential recovery [14][16]

In 2025, SoundHound AI (NASDAQ:SOUN) took further steps in reshaping how consumers and enterprises interact with machines.Rounding the year, Benzinga caught up with the CEO, Keyvan Mohajer, to reflect on key accomplishments and discuss what 2026 has in store for the leading voice AI company.The Amelia Acquisition MaterializesSoundHound began the year on a firm footing, driven by the early success of Polaris, its proprietary foundation model for speech and language.Polaris had already posted headline-grabbin ...

Core Insights - SoundHound AI, Inc. is facing challenges in its automotive segment while experiencing growth in enterprise AI, raising questions about its ability to balance these dynamics as it enters 2026 [2][6] Automotive Segment - The automotive business is under pressure due to global tariffs and industry softness, leading to volatility in revenues [3][11] - Long development cycles and OEM production schedules contribute to the unpredictability of growth in the automotive sector [3] - The company anticipates improvements in automotive revenues as voice commerce initiatives and next-generation deployments scale, although the timing remains uncertain [4] Enterprise AI Growth - Enterprise AI has emerged as a significant growth driver, with revenues increasing by 68% year-over-year to $42 million in Q3 2025, fueled by demand in financial services, healthcare, insurance, telecom, and retail [5][11] - The subscription-style economics and faster deployment cycles in enterprise AI provide clearer ROI, enhancing revenue durability [5] Competitive Landscape - C3.ai and Cerence are key competitors, with C3.ai focusing on enterprise AI automation and Cerence strengthening its automotive AI presence [7][8] - Both competitors are expanding their capabilities, making the competitive environment more intense for SoundHound [7][8] Financial Performance - SoundHound's shares have declined by 54.1% over the past year, underperforming compared to the Zacks Computers - IT Services industry, which saw a 17.2% decline [9][11] - The company's forward 12-month price-to-sales ratio is currently at 18.62, higher than the industry's 15.49 [13] - The Zacks Consensus Estimate for SoundHound's 2026 loss per share remains unchanged at 5 cents, indicating a 63.8% improvement year-over-year [16]

Core Insights - SoundHound AI Inc. has been identified as a promising investment opportunity by hedge funds, particularly after an upgrade from Cantor Fitzgerald, which raised its price target to $15 from $13 [1][2] Group 1: Company Performance and Strategy - Cantor Fitzgerald's upgrade is attributed to SoundHound's effective execution in cross-selling and upselling voice and conversational AI services, indicating strong operational performance [2] - The company has seen an increase in automated voice volumes following its acquisition of Amelia, positioning it well to benefit from the growth trends in voice AI [2][4] - SoundHound AI has formed a strategic partnership with OpenTable to introduce an in-vehicle voice AI system, allowing drivers to make restaurant reservations via voice commands, enhancing user experience [3][4] Group 2: Market Position and Future Prospects - The collaboration with OpenTable is viewed as a significant step towards integrating voice-enabled transactions in vehicles, expanding the company's service offerings [4] - Cantor Fitzgerald anticipates that the recent acquisition of Interactions will serve as a key driver for organic growth, supported by an expanding partner ecosystem [4] - SoundHound AI specializes in voice and conversational intelligence technology, providing businesses with tools to create AI agents and voice assistants for various applications [5]

SoundHound AI Inc. (NASDAQ:SOUN) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 12, Cantor Fitzgerald upgraded SoundHound AI Inc. (NASDAQ:SOUN) to an Overweight from Neutral and raised the price target to $15 from $13. Cantor Fitzgerald Upgrades SoundHound AI Inc. (SOUN) Buoyed By Voice and Conversational AI Services Development The upgrade is in response to what Cantor Fitzgerald touts as “very well” execution by the company in cross-selling and upselling v ...

Core Viewpoint - AI software stocks are expected to emerge as significant market players in 2026, following the dominance of semiconductor and AI infrastructure stocks in recent years [1] Group 1: SoundHound AI - SoundHound AI is transitioning from an AI voice company to a voice-led agentic AI company, leveraging its voice technology for a competitive advantage [2] - The company experienced rapid growth, with revenue more than doubling in the first nine months of 2025, and has established a strong presence in the automobile and restaurant industries [4] - SoundHound AI's acquisition of Amelia has enhanced its capabilities in creating an agentic AI platform and expanded its customer relationships in healthcare, financial services, and retail [4] - The company is improving its gross margins, with expectations of generating positive EBITDA soon, and is well-positioned for future growth [6] Group 2: Salesforce - Salesforce is viewed as a potential AI loser but is actually well-positioned due to its role as a system of record for customer service, marketing, and sales [8] - The acquisition of Informatica strengthens Salesforce's data management capabilities, enhancing its position as a reliable data source [8] - Salesforce's Agentforce solution is integrated throughout its product suite, with annual recurring revenue (ARR) for Agentforce surging 330% to $540 million last quarter [9] - The stock is considered undervalued, trading at a forward price-to-sales (P/S) ratio below 5.5, a forward price-to-earnings (P/E) ratio around 20, and a price/earnings-to-growth (PEG) ratio below 0.65 [10] Group 3: Snowflake - Snowflake operates a cloud-based data warehousing and analytics platform that separates storage from compute, allowing customers to access data across different cloud providers [11] - The platform's architecture creates a "sticky" environment for customers, making it difficult to move data once integrated [11] - Snowflake is also adopting AI agents through its Snowflake Intelligence solution, which had over 1,200 customers and a $100 million AI revenue run rate at the end of the last quarter [12] - The company reported a 29% revenue increase last quarter, with a net revenue retention rate of 125% over the past 12 months, indicating strong growth potential [13][14]

Company Overview - SoundHound AI specializes in intelligent voice recognition and conversational capabilities for applications such as customer service, in-vehicle voice assistants, and food ordering and delivery [5] - The company is currently collaborating with an undisclosed sports car manufacturer to develop a "personality" for its in-vehicle AI voice assistant [5] Financial Performance - SoundHound AI has a market capitalization of approximately $4.7 billion and is projecting revenues of about $173 million for the current year, resulting in a forward price-to-sales (P/S) ratio of around 27 [6] - The company has managed to reduce its losses by half year over year through the first nine months of 2025, although it is still not profitable [6][7] Market Position and Growth Potential - The stock price of SoundHound AI has increased by about 45% since its public debut via a reverse merger in August 2022, but this is still below the 70% total return of the S&P 500 during the same period [2][3] - Investors who purchased shares between late 2022 and early 2024 have seen returns of approximately 1,000% from December 2022 [3] Valuation Concerns - The current valuation of SoundHound AI is considered high, raising concerns among investors about its sustainability [6][9] - Despite its rapid revenue growth, the high price-to-sales ratio indicates that the stock may be overvalued, which could pose risks if the company's performance does not meet expectations [6][9] Competitive Landscape - There are uncertainties regarding SoundHound AI's ability to fend off competition in the conversational AI market, as being a first mover does not guarantee long-term success [9] - The effectiveness of SoundHound AI's products and the potential for rivals to introduce superior options are critical factors that could impact the company's future performance [9]

Industry Overview - The AI revolution presents numerous investment opportunities and potential for significant economic transformation and productivity enhancements [1] - Companies of all sizes are heavily investing in AI research and infrastructure to remain competitive in the global technology landscape [1][2] Institutional Support - Strong institutional support is anticipated to accelerate the development and adoption of AI technologies, creating a stable environment for AI-focused businesses [2] Investment Recommendations - For investors with $2,000, three AI stocks are recommended for long-term holding [3] Company Analysis: Alphabet - Alphabet has a comprehensive AI ecosystem, including proprietary AI chips (TPUs), foundational models (Gemini), and a robust cloud platform, which provide competitive advantages [5][6] - TPUs are specifically designed for AI tasks, enhancing efficiency and reducing costs in AI training and inference [6] - Alphabet's ability to develop its own silicon allows for greater control over AI development and positions it as a significant player in the AI hardware market [7] - The company utilizes user interaction data from its platforms to refine AI models, boosting its core revenue-generating business, Google Search [9][10] - Alphabet reported a 33% increase in net income in Q3, demonstrating strong financial health and ongoing investment in AI infrastructure [11] Company Analysis: SoundHound - SoundHound specializes in voice and conversational AI solutions, enabling businesses to integrate customized voice assistants [12] - The company has diversified its client base beyond the automotive sector into industries like restaurants and customer service [13][14] - SoundHound's Q3 2025 revenue reached $42 million, a 68% increase year-over-year, although it has not yet posted an annual profit [15] - The company has a significant contractual backlog of approximately $1.2 billion, indicating potential future growth [16] - SoundHound offers customizable solutions that allow businesses to maintain brand control and data privacy, differentiating it from larger tech competitors [17] Company Analysis: Amplitude - Amplitude is a digital analytics platform that leverages AI to enhance user experience and drive revenue growth [18] - The company reported Q3 2025 results with annual recurring revenue (ARR) of $347 million, up 16% year-over-year, and remaining performance obligations (RPO) of $391.9 million, up 37% year-over-year [20] - Amplitude employs a freemium software-as-a-service model, acquiring customers through a free tier and scaling revenue as they adopt more features [21] - The company has over 4,500 customers, with a 15% year-over-year increase in customers generating $100,000 or more in ARR [22] - Although still posting a GAAP net loss, Amplitude is cash-flow positive and anticipates achieving non-GAAP operating income for the full year 2025 [23]

Both SoundHound and GitLab look poised to rebound in 2026.The stocks of SoundHound AI (SOUN 2.44%) and GitLab (GTLB 2.07%) have both had a rough go in 2025. The former trades down more than 40% on the year, as of this writing, while the latter has lost more than 30% of its value.However, both stocks could be poised to rebound in 2026. Let's take a close look to see which one has the better opportunity to outperform next year. The case for SoundHoundAISoundHound's underperformance in 2025 has more to do with ...