SOUN Will Benefit From Expanding APAC IoT Deals And Automotive Integrations

Analysts have lifted their fair value estimate for SoundHound AI from about $18.00 to roughly $24.01 per share, citing slightly better than expected quarterly results and growing IoT traction in APAC despite a softer Q4 organic outlook.

Analyst Commentary

Bullish analysts are responding positively to SoundHound AI's latest quarterly report, highlighting improving fundamentals and a clearer path to monetization across connected devices. The recent adjustment in fair value estimates underscores growing confidence in the company’s ability to convert pipeline opportunities into recurring revenue, particularly in international markets.

Bullish analysts emphasize that the latest quarter delivered slightly better than expected performance, supporting a constructive view on execution and validating management’s growth roadmap. The increased price targets are framed as a reflection of both near term momentum and the longer term potential of the company’s voice AI platform within the global IoT ecosystem.

Bullish Takeaways

• Upward revisions in price targets signal rising confidence that SoundHound AI can sustain revenue growth while narrowing the gap between current trading levels and intrinsic value estimates.
• The large IoT win in APAC is seen as an early proof point that the company can scale internationally, expanding its addressable market and supporting higher long term growth assumptions in valuation models.
• Despite a softer Q4 organic outlook, bullish analysts view the solid quarterly beat and growing deal activity as evidence of improving execution and pipeline visibility, helping to de risk forward estimates.
• Increasing traction in connected devices and automotive integrations is being interpreted as a structural tailwind, supporting a multi year growth narrative that justifies more optimistic assumptions on revenue multiples.

What's in the News

• Launched a fully conversational in-vehicle restaurant reservations agent through a new partnership with OpenTable. This extends SoundHound's in-car voice commerce platform to hands-free table bookings at over 60,000 restaurants worldwide (Key Developments).
• Expanded partnership with Parkopedia to roll out an in-vehicle voice AI parking agent. This enables drivers to find, compare, and pay for parking spaces using only voice commands, leveraging Parkopedia's database of more than 90 million spaces in over 20,000 cities (Key Developments).
• Raised full year 2025 revenue outlook to a range of $165 million to $180 million, reflecting stronger demand and improved visibility into the company pipeline (Key Developments).
• Partnered with global technology services distributor Telarus to bring the Amelia 7 AI agent and Autonomics platforms to thousands of technology advisors and their enterprise customers. The collaboration is intended to accelerate adoption of autonomous AI for CX and EX use cases (Key Developments).
• Deepened collaboration with Apivia Courtage, which is deploying the Amelia 7 agentic AI platform in its contact centers to handle complex, multi step customer interactions and further boost productivity after an initial 20 percent efficiency gain (Key Developments).

Valuation Changes

• The Fair Value Estimate has risen meaningfully from approximately $18.00 to about $24.01 per share, reflecting higher long term expectations for the business.
• The Discount Rate has increased slightly from about 8.39 percent to roughly 8.44 percent, indicating a modest uptick in the perceived risk profile or cost of capital.
• Revenue growth has moved higher from roughly 35.08 percent to about 37.42 percent, signaling a somewhat more optimistic outlook on top line expansion.
• The net profit margin has edged down slightly from approximately 12.66 percent to about 12.41 percent, incorporating a modest reduction in long term profitability assumptions.
• The future P/E multiple has increased from around 278.9x to roughly 313.8x, implying a higher valuation being placed on expected future earnings.