Jumping around 160% in the past month, and 23% so far in eary trading on Monday, SoundHound AI (SOUN, Financial) shares cap a strong 2024 performance likely to continue its fine form through 2025. Under a note headed by Daniel Ives, Wedbush kept its Outperform rating on the artificial intelligence speech platform, doubling its price target to $22 from $10. Over the past 18 months, Wedbush highlighted SoundHound's recent key acquisitions—Amelia, SYNQ3, and Allset—which have added new layers to the company's growth story in speech AI solutions.
Wedbush notes these moves to efficiently reflect a bold yet value-enhancing M&A strategy, as the company looks to prioritize a solid balance sheet to drive its growth While getting ready to enter the voice AI eCommerce market in 2025, the company is using enterprise AI spending—especially in restaurants and the automotive sector—to prepare. Key to its approach is its collaboration with Nvidia (NVDA, Financial), which allows speech-generative AI capabilities at the edge free from depending on cloud connectivity. At CES 2025, this innovation—which shows tech stack enhancements—will be highlighted.
Based on Weebler Finance, SoundHound's 72, almost 20 times the sector median of 3.45 shows its market optimism. With a third growth pillar in voice commerce about to start, the business is in a prime position for ongoing expansion ahead.
