Artificial intelligence (AI) stocks have delivered sizzling gains so far in 2023. But even the most bullish investors could be at least a little concerned that the momentum could soon lose steam.

In many cases, those worries might be warranted. However, analysts aren't hedging their bets one bit when it comes to one AI stock. Wall Street thinks that it could double over the next 12 months.

The sound of success

SoundHound AI (SOUN 1.07%) develops conversational AI technology. Its voice AI platform is used in a vast number of products that interact with SoundHound customers' end users.

Those customers include major automakers such as Honda, Hyundai, and Stellantis. SoundHound's customer base also features technology leaders such as Qualcomm, Oracle, and Block's Square. Its technology is also used by restaurant chains including Beef O'Brady's, Crust Pizza, and White Castle.

SoundHound AI has taken investors on a roller-coaster ride this year. The stock plunged by around 40% during the first few days of 2023. By early February, though, it was up 160%.

Just six weeks later, SoundHound AI had given up all of those gains. That wasn't the end of the story, though. In late June, the stock recaptured its previous peak and moved even higher. Another steep decline followed, and then another bounce. After all of those gyrations, SoundHound's share price is now up close to 35% year to date.

Buy, buy, buy

Only three analysts surveyed by Refinitiv cover SoundHound AI. That's not surprising, considering the company's market cap is only around $600 million. However, all three of those analysts recommend the AI stock as a buy, with one of them rating it as a strong buy.

Importantly, those buy recommendations are backed by especially bullish 12-month price targets. The average target for SoundHound reflects an upside potential of more than 100% from the current share price. 

Granted, averages -- particularly those based on a relatively small number of inputs -- can sometimes be misleading. In SoundHound AI's case, one exceptionally optimistic price target that's close to 190% higher than the current share price skews the result notably.

However, this doesn't really diminish how much Wall Street likes SoundHound AI. Even the most pessimistic price target implies an upside potential of more than 65%.

Is Wall Street right?

It's possible that these three bullish analysts are dead wrong about SoundHound AI. There are some areas of concern about the company and the stock.

For one thing, the company remains unprofitable. It posted a net loss of nearly $22 million in the second quarter, and negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $9.9 million.

SoundHound AI also must contend with multiple competitors -- several of which are huge tech companies with deep pockets, such as Amazon and Microsoft. SoundHound could have a tough time investing as heavily as these companies in research and development. 

Some investors could be scared away by SoundHound AI's valuation. The stock currently trades at 14 times trailing 12-month sales, which is definitely higher than some other AI stocks.

However, the analysts could nonetheless be right about the  prospects for SoundHound AI's stock to double over the next 12 months. The company's bottom line is improving. Its sales continue to grow robustly (up 42% year over year in Q2). It has also differentiated its technology from rivals.

I don't think that SoundHound AI is a great stock to buy for investors who are risk-averse. Its shares will likely remain highly volatile. But for aggressive investors, it appears to be a stock worth seriously considering. I'm not convinced that it will double within the next year. But it could potentially deliver market-beating returns.