From Yahoo Finance: 2025-05-24 08:30:00

SoundHound AI (NASDAQ: SOUN) shares have dropped by over 40% in 2025, but sales are projected to increase by 87% this year. The AI market is set to grow from $370 billion to over $2.4 trillion by 2032, benefiting companies like SoundHound. Analysts expect SoundHound’s revenue to soar by nearly 90% this year.

Despite the potential for growth, SoundHound trades at an expensive multiple of 42.6 times sales. The company’s R&D budget is significantly lower than its Big Tech competitors. However, high valuations can be justified with substantial growth projections. SoundHound could offer significant upside potential over the long term.

Investors considering SoundHound stock should be prepared for volatility and a potentially lengthy investment horizon. The market has priced in much of the company’s growth potential, but aggressive growth investors may find value in the stock. With a market cap of $4 billion, SoundHound’s long-term growth prospects remain attractive.

Read more: With SoundHound AI Stock Down 41%, Should You Buy the Dip?