1 Wall Street Analyst Thinks SoundHound AI Stock Is Going to $26. Is It a Buy?

Valuation and Investment Perspective - SoundHound's forward price-to-sales (P/S) ratio is nearly 90, indicating a high valuation despite the company not being profitable yet [1] - The stock is considered an aggressive investment, with potential for a profitable future as use cases grow [1] - The company's scalable platform is expected to allow revenue, adjusted EBITDA, and earnings to catch up to the share price over time [6] Stock Performance - SoundHound AI stock has more than quadrupled over the last three months and is up by 860% year to date [3] - Wall Street analyst Scott Buck maintains a "buy" rating and raised the price target from $8 to $26 per share, implying a 27% upside [7] Market Expansion and Revenue Growth - The market for voice technology has expanded from customer service sectors to automotive use cases, integrating cloud-based large language models into vehicles [4] - Recent acquisitions are expected to significantly increase the scope of SoundHound's business in retail, healthcare, and financial services [5] - SoundHound management has increased revenue guidance for this year and estimates sales will approximately double in 2025 [8] Industry Demand - Demand for voice generative AI is expected to continue growing across multiple sectors [5]