SoundHound AI (SOUN) Downgraded: What Investors Need to Know Now

SoundHound AI, Inc. (NASDAQ:SOUN) is one of the AI Stocks in the Spotlight Today. On July 14, Piper Sandler analyst James Fish downgraded the stock from Overweight to “Neutral” with a price target of $12. The firm said it sees a tough setup for the AI company, particularly for the second half of 2025.

“We are downgrading shares of SoundHound from OW to Neutral but reiterating our $12 price target.”

The firm noted that even though there is long-term potential for SoundHound, some deals may be pushed into 2026 for the company. The company is currently facing a challenge in trying to achieve profitability while also investing in its Amelia product line. Achieving both these goals effectively, the firm highlighted, can be a challenge for the company.

SoundHound AI (SOUN) Downgraded: What Investors Need to Know Now

The firm is particularly concerned about how pressure on second-half estimates may negatively impact SoundHound’s valuation multiple. Currently, it exceeds 20 times the calendar year 2026 estimates.  Piper Sandler is constructive on the company’s long-term opportunities regardless of the downgrade, but also acknowledges that execution in the second half of 2025 “could create a squeeze on shares.”

SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial 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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