SoundHound AI is a pure play in the rise of artificial intelligence that investors shouldn’t overlook, according to Piper Sandler. The firm initiated coverage of the AI stock on Monday with an overweight rating and a $12 per share price target. Piper Sandler’s forecast implies more than 25% upside from Friday’s $9.58 close. “With its voice-A.I platform, SoundHound is a direct play on the A.I revolution,” analyst James Fish wrote. The analyst highlighted a multitude of segments into which SoundHound can expand its growth runway, including further integrating its conversational AI technology into auto. SOUN YTD mountain SoundHound AI stock in 2025. “SoundHound’s original enterprise use-case was mainly in autos. There are multiple underlying positives for SoundHound here: just 4% penetration vs. white space of +25%, winning new OEMs, increasing IoT [internet of things] devices, ASPs expanding, & domestic,” the analyst said. “However, the auto-production slump (-1% Y/Y) and customer exposure (-4%) are creating challenges near-term.” “”The $47B serviceable opportunity across use-cases by 2027E is very early still,” Fish said. “Positively, we see a multi-headed A.I “monster” across QSRs & conversational A.I, early penetration in autos with increasing ASPs, leverage coming near to medium term given the business model transition & Amelia synergies, and a competitive advantage vs. even hyperscalers’ voice offerings.” SoundHound shares have taken a beating this year, losing more than half of their value. However, the stock has rallied nearly 18% in the second quarter and gained nearly 5% in the premarket. Only seven analysts cover the stock, per LSEG. Of those, four have a buy or strong buy rating while the remaining three rate it a hold. The average price target on SoundHound points to 23% upside.
