Is SOUN a good stock to buy? We came across a bullish thesis on SoundHound AI, Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on SOUN. SoundHound AI, Inc.’s share was trading at $8.08 as of May 27th.
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SoundHound AI, Inc. (SOUN) is a conversational artificial intelligence company focused on enabling businesses to integrate advanced voice assistants into products and services across automotive, restaurants, financial services, healthcare, insurance, and other industries. The core of its competitive advantage lies in its proprietary Speech-to-Meaning technology, which processes speech and interprets intent simultaneously rather than converting speech to text first, resulting in lower latency, greater accuracy, and improved performance in noisy environments such as drive-thrus and vehicles.
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Having spent nearly two decades developing voice AI and building a portfolio of almost 400 patents, the company has established a differentiated position in a rapidly expanding market that is projected to grow from approximately $3.5 billion in 2023 to $21.7 billion by 2030. Beyond voice recognition, SoundHound is extending its capabilities through agentic AI solutions such as Amelia 7, which can execute transactions and automate business processes on behalf of users.
The company’s appeal is strengthened by its independent business model, as customers retain ownership of their data rather than sharing it with large technology platforms. SoundHound is also transitioning from one-time licensing revenue toward higher-margin recurring revenue streams through royalties from automotive deployments and transaction-based fees from restaurant customers. Despite concerns surrounding profitability and competition from major technology companies, the business continues to demonstrate strong operational momentum.
In its latest results, SoundHound reported nearly 100% full-year revenue growth, guided for 2026 revenue of $225 million to $260 million, expects to achieve GAAP profitability in 2026, and maintains a debt-free balance sheet with $248 million in cash. With the stock down 66% from its October highs despite improving fundamentals, the thesis argues that business performance has strengthened while valuation has compressed, creating substantial upside potential if execution remains on track and profitability milestones are achieved.
Previously, we covered a bearish thesis on SoundHound AI, Inc. (SOUN) by Stefan Waldhauser in May 2025, which highlighted the company’s elevated valuation, significant cash burn, acquisition-driven growth, and widening losses despite strong revenue growth. SOUN’s stock price has depreciated by approximately 21.32% since our coverage. Denis Gorbunov shares a contrarian view but emphasizes SoundHound’s technological advantages, growing recurring revenue base, improving financial outlook, and potential upside as the business continues to execute while valuation remains compressed.
SoundHound AI, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held SOUN at the end of the first quarter which was 22 in the previous quarter. 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.
Disclosure: None.
