Wedbush: SoundHound AI (SOUN.US) begins a new growth stage! Potential stock price increase of up to 26%.

Investment bank Wedbush stated that the latest performance and guidance released by voice recognition company SoundHound AI (SOUN.US) have laid the foundation for the next phase of growth in its artificial intelligence (AI) business. The bank maintained its "outperform" rating for SoundHound AI with a target price of $18. This target price represents an increase of nearly 26% from the stock's closing price of $14.23 on Thursday. According to the financial report, SoundHound AI's revenue for the third quarter was $42.049 million, a 68% year-over-year increase. Under non-GAAP accounting standards, the gross profit was $24.917 million, a 66% year-over-year increase; Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was -$145 million, compared to -$159 million in the same period last year; Net loss was $130 million, compared to a net loss of $150 million in the same period last year. Additionally, the company raised its full-year revenue forecast for 2025 to be between $165 million and $180 million. Wedbush analyst Dan Ives and his team wrote in a client report, "SoundHound AI has slightly increased its 2025 revenue guidance to $165 million to $180 million (previously $160 million to $178 million), and we believe this expectation is still conservative as demand remains strong in various verticals - slight improvement in the automotive sector, while other verticals continue to show strong growth." The analyst added, "Overall, we view this performance release as another positive development in the growth story of SoundHound AI. Despite increasing competition and uncertain macro environment, the company continues to demonstrate strong monetization capabilities in multiple high-potential artificial intelligence markets, moving towards profitability growth."