SoundHound AI (SOUN 3.06%) is positioning itself to be the leader in artificial intelligence (AI) voice recognition technology. The stock has soared by more than 900% over the last three years.
After pulling back sharply from its recent highs, this is a good time to evaluate its long-term prospects, as the recent dip could prove to be a timely buying opportunity before more growth sends the shares higher in 2026.
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A long runway of growth
SoundHound's voice AI technology is being used by several leading restaurant and automotive brands, but the company is aiming much higher. Management sees a $140 billion addressable market by expanding into customer service platforms, smart devices, and enterprise services.
The company reported a 68% year-over-year increase in revenue for the third quarter. It noted progress in expanding into the enterprise market by deploying its technology across millions of devices across several industries.
NASDAQ: SOUN
Key Data Points
The major hurdle to the stock taking off is reaching breakeven on the bottom line. The company reported a significant net loss of $313 million on a trailing-12-month basis.
However, if the market for voice AI continues to expand rapidly, SoundHound should see growing profits from subscription revenue. The adoption of its Amelia 7 software platform, which provides businesses with agentic AI capabilities, will be a catalyst in this regard.
The point at which an unprofitable business becomes profitable can typically represent a significant boost to the stock price. SoundHound's large addressable market and strong revenue growth position the business well to achieve its goals. Wall Street analysts currently expect SoundHound to reach breakeven by 2027.
It's challenging to predict where the stock will trade in five years, but there is substantial upside for the voice AI leader, with a market cap of just over $5 billion at the time of writing.
