SoundHound AI stock predicted to rise 25% in a year

What happened

SoundHound AI stock trades at about $7, near the bottom of its 52-week range, after swinging between less than $6 and more than $22 over the past 12 months. The author predicts the stock will rise by roughly 25% over the next year or so, though the path may remain volatile.

Why it matters

SoundHound AI's voice AI platform lets people interact with cars and devices or do business without a human employee, and the company has expanded from autos into restaurants, hospitality, and customer service. Its pending purchase of LivePerson, at an enterprise value of about $250 million, adds a client base of 25 Fortune 100 companies, and management believes the combined company could generate between $350 million and $400 million in revenue in 2027.

What to watch

The author's upside scenario assumes 2027 revenue lands at $375 million—the middle of that guidance range—and values the stock at 12 times 2027 revenue, implying a market cap of about $4.5 billion and roughly 25% upside from a hypothetical $3.5 billion base value. However, SoundHound AI is not profitable, so investors should be careful about how high a valuation they bake in.