SoundHound AI: Where Will This Stock Be in 5 Years?

SoundHound AI (NASDAQ: SOUN) is already operating astatine accumulation scale, with its conversational and agentic artificial quality (AI) solutions deployed crossed millions of devices (endpoints) globally and embedded successful real-world workflows crossed industries.

But tin this operational momentum construe into stock terms gains implicit the adjacent 5 years? Let's find out.

SoundHound AI's caller fiscal show has been impressive. In the archetypal 9 months of fiscal 2025, gross jumped 127% twelvemonth implicit twelvemonth to $114 million. While not yet profitable, absorption expects near-break-even adjusted EBITDA profitability done 2026.

SoundHound had antecedently disclosed a contractual backlog of astir $1.2 cardinal exiting fiscal 2024, which highlighted its multi-year request visibility beyond near-term gross recognition. The gross visibility is further reinforced by a ample Internet of Things (IoT) and robotics statement with a Chinese subordinate to integrate SoundHound Chat AI solutions successful double-digit millions of AI-powered astute devices implicit the adjacent 2 oregon 3 years.

SoundHound differentiates itself from galore third-party dependable AI players with its proprietary multimodal, multilingual Polaris code instauration model, which has enabled little latency and higher accuracy successful dependable connection portion lowering the infrastructure costs. Enterprise adoption has besides accelerated with the rollout of its Amelia 7 agentic AI platform, portion SoundHound besides expects dependable commerce to modulation from aviator programs into afloat accumulation successful 2026.

Management has antecedently indicated yearly integrated gross maturation of implicit 50% for the foreseeable future. Assuming fiscal 2025 gross to beryllium $172.5 million, which is the midpoint of the company's gross guidance of $165 cardinal to $180 million, SoundHound's fiscal 2030 gross tin scope astir $1.3 billion. Applying a price-to-sales aggregate of astir 7.4x, successful enactment with the mean aggregate of the exertion bundle manufacture successful 2025, the company's marketplace headdress tin scope $9.6 cardinal successful fiscal 2030, astir 2.1 times its existent marketplace headdress of $4.6 billion.

Hence, if SoundHound manages to turn gross and profits, investors tin expect the banal terms to much than treble successful the adjacent 5 years.