SoundHound AI (SOUN) stock scored a price-target hike as the maker of conversational AI voice technology continues its meteoric rise. SOUN stock rose Monday on the news.
Wedbush Securities analyst Daniel Ives reiterated his outperform rating on SoundHound stock and upped his price target to 22 from 10.
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In morning trades on the stock market today, SOUN stock climbed about 1% to 17.08.
Year to date through Friday’s close, SoundHound stock is up 698%.
“SoundHound represents an underappreciated pure play AI company,” Ives said in a client note Sunday. The company is likely to expand its total addressable market and growth trajectory in 2025, he said.
The Santa Clara, Calif.-based company currently focuses on two primary markets with its voice technology: automotive and restaurants.
SoundHound’s conversational intelligence technology is in vehicles from Hyundai, Kia, Genesis and other brands. It also is used by restaurant chains such as Chipotle, Jersey Mike’s, Applebee’s, White Castle, Panda Express and Church’s Chicken. Earlier this month, it added Torchy’s Tacos as a client.
SOUN Stock Deemed ‘Long-Term Winner’
SoundHound “is in the early stages of capitalizing on its growth initiatives,” Ives said. And it looks to expand into e-commerce markets in 2025, he said.
“We believe that SoundHound is a long-term winner in the AI revolution as the innovative tech stack provides various use cases for chat AI integrations across its three pillars (automotive, restaurants, e-commerce),” Ives said.
Meanwhile, the company is leveraging its partnership with Nvidia (NVDA) to bring generative AI voice technology to the edge of networks, Ives said. Nvidia has an ownership stake in SoundHound.
SOUN stock ranks No. 11 out of 62 stocks in IBD’s Computer-Tech Services industry group, according to IBD Stock Checkup. SoundHound has an IBD Composite Rating of 86 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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