Is SoundHound AI a Lucrative Bet on Long-Term Potential on Voice AI?

SoundHound AI Inc. SOUN — the conversational and agentic artificial intelligence (AI) specialist — reported impressive second-quarter 2025 earnings results. SOUN reported quarterly adjusted loss of $0.03 per share, narrower than the Zacks Consensus Estimate of a loss of $0.06. This also compares to a loss of $0.11 per share a year ago. Quarterly revenues of $42.7 million were up 217% year over year, beating the Zacks Consensus Estimate of $33 million. SoundHound AI reported second-quarter earnings results on Aug. 7 after the closing bell. On Aug. 8, its stock priced soared 26.4%. Despite this rally, the stock is a major laggard this year. Shares of SOUN have plummeted 19.8% year to date. The broad-market benchmark — the S&P 500 Index — is up 8.5% year to date while the tech-heavy Nasdaq Composite is up 10.9%.Image Source: Zacks Investment ResearchTechnological Advancement Recently, SOUN introduced Vision AI integrating visual understanding with its voice-first platform. Vision AI strategy will enable the company to improve both top and bottom lines by making huge inroads into the emerging voice commerce market. In the last reported quarter, Enterprise AI recorded its highest number of monthly go-lives, driven by the Amelia 7 agentic AI platform. Restaurant AI deployments expanded to more than 14,000 locations, with more than 1,000 added in the second quarter. Automotive growth was fueled by a major OEM win in China and higher ASPs from Generative AI integration. Voice Commerce pilots with global automakers and QSRs advanced toward commercialization, creating cross-sell opportunities across verticals. SOUN is doubling down on its multilingual and multimodal foundation model, Polaris, as a cornerstone of its competitive edge in the voice AI landscape. In the multilingual voice AI race, the company faces stiff competition from tech giants such as Alphabet Inc. GOOGL, Amazon.com Inc. AMZN and Baidu Inc. BIDU. In this regard, the integration of Polaris across acquisitions such as SYNQ3, Allset, and Amelia has already led to enhanced upsell and cross-sell traction across verticals, further strengthening its value proposition.Robust Clientele SOUN has a powerful list of clients, especially in the automotive vertical. Its major clients include, Mercedes-Benz of Germany, Honda Motor Co. HMC of Japan and Hyundai Motor Co. of South Korea. On Aug 5, management said that its advanced voice assistant with integrated Generative AI, SoundHound Chat AI Automotive, has been rolled out to vehicles of three major global automotive brands across North America. SOUN estimates that in-car voice commerce represents up to a $35 billion annual opportunity for automakers.Solid Guidance Management raised its 2025 revenue outlook to $160 – $178 million, citing strong close rates and expanding AI adoption. Previously, management had guided sales between $157 million and $177 million. The mid-point of the current guidance represents 99.5% year-over-year sales growth. Sequential growth is expected in the second half, with the fourth quarter anticipated to outpace the third quarter on seasonal enterprise and automotive momentum. SOUN projects adjusted EBITDA profitability by year-end 2025, supported by ongoing cost synergies, cloud optimizations, and scaling Voice Commerce opportunities.Attractive Estimate RevisionsFor third-quarter 2025, the Zacks Consensus Estimate currently shows revenues of $44.69 million, suggesting an increase of 78.1% year over year and EPS of -$0.04, indicating an improvement of 33.3% year over year. The Zacks Consensus Estimate for current-quarter earnings has improved 20% over the last 90 days.For full-year 2025, the Zacks Consensus Estimate currently shows revenues of $167.3 million, suggesting an increase of 97.5% year over year and earnings per share of -$0.16, indicating an improvement of 84.6% year over year. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the last 90 days.Image Source: Zacks Investment ResearchLucrative ValuationThe stock price of SoundHound AI is trading at a 45.8% discount to its 52-week high. SOUN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.This mid-cap voice AI specialist has been benefiting from accelerating adoption across enterprise, automotive, and restaurant verticals, along with solid early traction for its agentic AI and Voice Commerce initiatives. SOUN’s technological innovations, strong client base and diversification into various business verticals are expected to generate momentum for its stock price movement in the near future.  Image Source: Zacks Investment ResearchResearch Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report SoundHound AI, Inc. (SOUN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks