SoundHound AI is a pure play within the rise of synthetic intelligence that traders should not overlook, in accordance with Piper Sandler. The agency initiated protection of the AI inventory on Monday with an chubby score and a $12 per share worth goal. Piper Sandler’s forecast implies greater than 25% upside from Friday’s $9.58 shut. “With its voice-A.I platform, SoundHound is a direct play on the A.I revolution,” analyst James Fish wrote. The analyst highlighted a large number of segments into which SoundHound can broaden its progress runway, together with additional integrating its conversational AI expertise into auto. SOUN YTD mountain SoundHound AI inventory in 2025. “SoundHound’s authentic enterprise use-case was primarily in autos. There are a number of underlying positives for SoundHound right here: simply 4% penetration vs. white house of +25%, profitable new OEMs, growing IoT [internet of things] gadgets, ASPs increasing, & home,” the analyst stated. “Nevertheless, the auto-production hunch (-1% Y/Y) and buyer publicity (-4%) are creating challenges near-term.” “”The $47B serviceable alternative throughout use-cases by 2027E could be very early nonetheless,” Fish stated. “Positively, we see a multi-headed A.I “monster” throughout QSRs & conversational A.I, early penetration in autos with growing ASPs, leverage coming close to to medium time period given the enterprise mannequin transition & Amelia synergies, and a aggressive benefit vs. even hyperscalers’ voice choices.” SoundHound shares have taken a beating this 12 months, dropping greater than half of their worth. Nevertheless, the inventory has rallied almost 18% within the second quarter and gained almost 5% within the premarket. Solely seven analysts cowl the inventory, per LSEG. Of these, 4 have a purchase or sturdy purchase score whereas the remaining three price it a maintain. The common worth goal on SoundHound factors to 23% upside.