Stock Analysis

SoundHound AI (SOUN) Partners With AVANT For Enterprise AI Automation Across Industries

NasdaqGM:SOUN
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SoundHound AI (SOUN) recently announced a collaboration with AVANT Communications, enhancing the deployment of its Amelia 7.0 AI agent and Autonomics platforms. This partnership could have bolstered the company's stock price by enhancing its reach across various industries. During the last quarter, SoundHound's stock rose 30%, significantly outperforming the broader market's 1.7% rise over the past seven days. While this was ahead of the market, other developments like the company's earnings improvement and innovations further complemented this uptrend, counterbalancing any potential negative impacts from being dropped from multiple indices.

SoundHound AI has 3 risks we think you should know about.

SOUN Revenue & Expenses Breakdown as at Jul 2025
SOUN Revenue & Expenses Breakdown as at Jul 2025

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The recent collaboration between SoundHound AI and AVANT Communications could significantly impact the company's long-term outlook. By enhancing the deployment of its Amelia 7.0 AI agent and Autonomics platforms, the partnership aims to expand SoundHound's presence across various industries. This expansion aligns with the company's strategy to boost revenue through innovative AI solutions and diversified partnerships. Analysts anticipate that these efforts will positively influence SoundHound's future revenue streams and earnings forecasts, further contributing to its path toward profitability. However, challenges remain, including reliance on partnerships and high R&D costs, which could affect margins and predictability of earnings.

Over the past three years, SoundHound's total shareholder return, including share price appreciation and dividends, was very large at 221.90%. This performance reflects the company's strong positioning in the voice AI market, bolstered by ongoing efforts in innovation and expansion. In comparison, over the past year, SoundHound's stock outperformed the US Software industry, which returned 28.6% in the same timeframe. This indicates robust investor confidence in the company's growth and strategic initiatives.

Despite recent gains, the current share price of US$12.20 remains above the consensus price target of US$11.81, indicating cautious optimism among analysts. The collaboration and ongoing strategic moves may influence future revenue and earnings forecasts, but investors should remain mindful of the potential risks inherent in SoundHound's operating model and market positioning. As such, shareholders should continue to assess the alignment of the company's developments with their investment strategies.

Unlock comprehensive insights into our analysis of SoundHound AI stock in this financial health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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About NasdaqGM:SOUN

SoundHound AI

Develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers in the United States, Korea, France, Japan, Germany, and internationally.

Flawless balance sheet with high growth potential.

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