SoundHound AI Stock Is Predicted to Surge 19% Higher, Analyst Suggests
SoundHound AI stock has seen a remarkable 178% increase in trading over the course of 2024, making it one of the standout artificial intelligence (AI) stocks this year. Analysts are projecting even further growth in the near future, with one Wall Street expert setting a price target of $7 per share for the stock – signaling a potential 19% upside.
Analyst Glenn Matson from Ladenburg believes that SoundHound is on track for significant gains, forecasting a 50% annual sales growth rate over the next two years. Additionally, he anticipates that the company will achieve profitability on an earnings-before-interest-taxes-depreciation-and-amortization (EBITDA) basis by the second half of 2025. Matson points to SoundHound’s voice-based AI platform and the increasing adoption of its Pillar II software for restaurants as driving factors behind this bullish outlook.
While SoundHound’s stock could reach the $7 target in the short term, long-term investors are advised to proceed with caution. The company currently trades at around 26.2 times its projected sales for the year, with profitability still uncertain. In comparison, Super Micro Computer, another fast-growing AI player, trades at just 3.9 times its expected sales and 46 times earnings, making it a potentially more sound investment choice.
As investors weigh their options in the AI sector, it’s essential to consider the balance between projected growth and current valuation. While SoundHound AI shows promise for near-term gains, a careful evaluation of the company’s financials and market position is crucial for making informed investment decisions.
In conclusion, SoundHound AI stock may offer potential upside according to analysts, but investors should conduct thorough research and consider alternative options such as Super Micro Computer for a more holistic investment strategy in the dynamic AI market landscape.
