SoundHound AI Stocks Surge with Upgraded Price Target of $22

On Monday, shares of SoundHound AI Inc. (NASDAQ: NASDAQ:SOUN) increased by 7% in pre-market trading following an analyst raising the target price for the stock. This increase adds to the significant growth the company has recently experienced; the stock rose by 24% on Friday and a total of 124% over the past month. Year-to-date, SoundHound AI's stock has risen nearly 700%.

The current trading price of the stock stands at $17.75, surpassing the previous target price. The new target price of $22 is the highest among Wall Street analysts and more than double the next highest target of $9.50. This adjustment reflects a positive outlook on the company's potential in the rapidly evolving artificial intelligence market.

The revision of the target price from $10 to $22 came alongside a confirmation of the Outperform rating. The analyst cited "high momentum in the SOUN growth story" and increasing demand for SoundHound's voice AI solutions as key reasons for the update. As we move toward 2025, the analyst emphasized that SoundHound is in the early stages of capitalizing on growth initiatives in the enterprise AI space, which is seen as a $1 trillion opportunity in the coming years.

SoundHound AI Inc. is recognized for its innovative technology stack that offers various applications for Chat AI integrations across three primary sectors: automotive, restaurants, and e-commerce. The company is expected to gain momentum with a recurring revenue software model that strengthens its position in voice and speech AI, expands into new vertical markets, and enhances monetization capabilities.

The analyst expressed confidence in SoundHound's long-term prospects, stating, "We believe SOUN is a long-term winner in the AI Revolution." The company’s advancements in voice AI place it at the forefront of a transformative era in technology, providing the potential to integrate its solutions across multiple sectors.