‘An Intriguing Opportunity,’ Says Top Investor About SoundHound Stock

FomoAnxiety · 2026-03-04T15:52:01+00:00

SoundHound AI's revenue surged by 59% year-over-year, reaching $55.1 million in Q4, despite remaining unprofitable. While interest from investors exists, concerns about its high valuation make it a speculative buy. Wall Street shows more optimism, assigning a Strong Buy consensus rating.

FomoAnxiety

2026-03-04 15:52:01

Abstract generation in progress

**SoundHound AI (NASDAQ:SOUN) **continues to bring in the revenues, and the trend didn’t seem to slow down one bit last quarter.

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SoundHound’s Q4 revenue of $55.1 million was up 59% year-over-year, while its full-year sales of $169 million were almost double its 2024 tally. Reflecting these burgeoning numbers, the company signed numerous deals with clients in the food services, automotive, retail and consumer goods sectors, among other fields.

“Our results speak for themselves,” declared CEO Keyvan Mohajer.

Though the company remains unprofitable, its 4th quarter EBITDA loss of -$7.4 million represented a 56% year-over-year improvement. In addition, management has stated that it’s aiming for long-term gross margins north of 70% and EBIT margins of more than 30%.

SOUN has been jumping over the past few days, though that’s a trend that bucks its recent history. Its share price has fallen some 33% during the last three months, even after its 13% rise during the last week.

Does this make SOUN a good buy? Top investor Geoffrey Seiler is interested, but not quite sold.

“The company has a huge opportunity in front of it, although the stock is not cheap,” emphasizes the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.

For one thing, Seiler points out that SOUN is generating neither profit nor free cash flow. The investor adds that this dynamic makes it a “speculative stock.”

Moreover, its price-to-sales multiple of close to 16x 2026 revenue estimates makes it a rather expensive buy.

And yet, there’s an “intriguing” opportunity here, explains Seiler. The investor points out that companies will only want to deploy AI agents that can communicate well with customers, understanding their intent and without causing frustration.

“That’s what SoundHound’s AI platform is meant to do, so it has a huge opportunity in this area,” he states.

Despite the potential, the investor prefers to keep his powder dry for the time being.

“I’d only consider a small position given its valuation and would prefer it on a pullback,” concludes Seiler. (To watch Geoffrey Seiler’s track record, click here)

Wall Street, for its part, feels a bit more bullish about SOUN. With 6 Buys and just 1 Hold, SOUN enjoys a Strong Buy consensus rating. Its 12-month average price target of $14.83 points to an upside of more than 70%. (See SOUN stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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