Here’s Why DA Davidson Lowered PT on SoundHound AI (SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) is one of the Best Small Cap AI Stocks to Buy According to Wall Street Analysts. On May 8, DA Davidson lowered the firm’s price target on SoundHound AI, Inc. (NASDAQ:SOUN) from $14 to $12 and maintained a Buy rating on the shares.

The rating comes after the company reported fiscal Q1 2026 earnings on May 7. The firm noted that although the company started fiscal 2026 by beating revenue expectations, this growth was driven by broad-based demand across the industry.

During the quarter, the company posted $44.2 million in revenue, reflecting 52% year-over-year increase, driven by growth in financial services and automotive segments. The automotive and IoT AI segment was up 88% year-over-year. Management highlighted that no single customer represented more than 10% of the total revenue, reflecting diversification. Looking ahead, management expects revenue in the range of $225 million to $260 million.

SoundHound AI Inc. (NASDAQ:SOUN) is a voice intelligence company offering voice AI solutions to businesses.

While we acknowledge the risk and potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOUN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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