Where Will SoundHound AI Be in 5 Years?

It has been just under four years since SoundHound AI (NASDAQ: SOUN) went public in April 2022 after merging with a special purpose acquisition company (SPAC), and the stock has experienced significant volatility since then.

SoundHound AI’s stock performance has been flat since its stock market debut. The voice artificial intelligence (AI) specialist has seen wild swings in its stock price in its life as a public company. The stock managed a stellar 2024, rising an incredible 836%, before losing half its value last year. Even worse, SoundHound AI is trading down 24% in 2026, as of this writing.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Does this mean investors should stay away from this company? Or will its stock market fortunes turn around in the long run, helping investors become richer over the next five years? Let’s find out.

Image source: Getty Images.

Demand for voice-based AI solutions that leverage natural language processing, speech recognition, and text-to-speech to replicate human-like interactions has been growing steadily. Voice AI technology is being deployed in applications such as customer service, real-time transcription, and appointment automation, among others.

The conversational AI market was worth $11.6 billion in 2024, according to Grand View Research. However, it is expected to balloon to $41.4 billion by 2030 at a compound annual growth rate (CAGR) of 24%.

SoundHound AI is a voice AI solutions specialist. The company claims that it automates more than 10 billion conversations a year across multiple industries, including restaurants, finance, automotive, healthcare, retail, insurance, and telecom.

Its platform enables customers to build voice AI agents, create smart ordering solutions for restaurants, integrate voice AI into vehicles, and create custom voice AI solutions, among other things. Importantly, SoundHound AI is becoming a key player in this emerging niche. The company’s revenue nearly doubled in 2025 to $169 million.

This outstanding growth was fueled by the adoption of SoundHound’s AI solutions across multiple industries worldwide. Management noted on the February earnings call that it signed more than 100 deals with customers in automotive, financial services, retail, hospitality, healthcare, and other verticals. The good news for investors is that SoundHound has a diversified customer base, as no single customer accounts for more than 10% of its top line.

SoundHound is expecting $225 million to $260 million in revenue this year. That would be a 43% increase over last year’s revenue, suggesting SoundHound is on track to clock significantly faster growth than the conversational AI market’s 24% CAGR. However, SoundHound management says that its revenue will ramp up as the year progresses, fueled by new product releases that will improve its cross-selling and upselling opportunities.

SoundHound’s sales multiple of 17.7 is on the expensive side compared to the U.S. tech sector’s average price-to-sales ratio of 7.9. Of course, SoundHound is growing at a much faster pace than its industry, which justifies its valuation to some extent.

Assuming SoundHound clocks 24% annual growth in revenue (in line with the conversational AI market’s growth rate) through 2030, its top line could reach $573 million by the end of the decade (using the $242.5 million midpoint of its 2026 revenue as the base). If SoundHound trades in line with the sector’s average after five years, its market cap could reach $4.5 billion.

That would be a 40% increase over the current market cap, though don’t be surprised if this AI stock posts bigger gains if it continues to outperform the voice AI market.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.

Where Will SoundHound AI Be in 5 Years? was originally published by The Motley Fool

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