Shares of the voice-powered synthetic intelligence (AI) firm SoundHound AI (SOUN 11.48%) traded almost 13% larger as of 11:18 a.m. ET at present. Analysts at Piper Sandler initiated protection of the inventory Tuesday morning with an obese ranking.
A pure play on AI
Piper Sandler analyst James Fish wrote in his initiation observe that SoundHound, which offers superior AI voice assistants, is a good way to play the AI commerce, and the corporate has simply begun to faucet into its potential.
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He added that he sees a mixed $30 billion serviceable addressable market by 2027. Moreover, Fish and his group count on SoundHound to transition to extra of a subscription mannequin, during which income from this phase of the enterprise might make up 90% of complete income in only a few years.
Two years in the past, subscription income represented simply 4% of complete gross sales. Fish has a worth goal on the inventory of $12, implying one other 12% upside, even after this current rally.
Nonetheless early within the journey
SoundHound AI actually appears to be like to have an extended runway and is making monetary progress as effectively. Income within the first quarter of 2025 grew greater than 150% yr over yr, whereas the corporate reported $0.31 earnings per share and a $0.06 loss per share on an adjusted foundation.
With a $4.3 billion market cap, the inventory remains to be costly, so like lots of my suggestions on these AI shares with huge potential, you’ll be able to begin to accumulate shares however need not go all in simply but.
Bram Berkowitz has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
