H.C. Wainwright Raises SoundHound AI Stock Target to $26

Investment firm H.C. Wainwright has increased its price target for SoundHound AI, Inc. (NASDAQ: SOUN) from $18.00 to $26.00, affirming a “Buy” rating for the stock. This development occurred on October 16, 2023, as the company continues to gain attention within the artificial intelligence sector.

Despite a rise of 7.9% in 2023, SoundHound shares have underperformed compared to the Russell 2000, which has seen a gain of 13.0% during the same period. Analysts at H.C. Wainwright believe that the upcoming third-quarter results, expected in November, could act as a catalyst for the stock’s performance, leading to what they describe as “material outperformance” in the near future.

The firm also noted that current revenue forecasts for 2026 do not account for the potential contributions from SoundHound’s recent acquisition of Interactions Corporation. This acquisition is anticipated to significantly enhance revenue streams in the following year, further supporting the optimistic outlook for the company.

SoundHound AI specializes in voice artificial intelligence, delivering innovative voice AI solutions to businesses. While acknowledging the inherent investment risks, analysts maintain a strong belief in the company’s potential for higher returns compared to some of its peers in the AI sector.

For investors seeking alternative options, H.C. Wainwright suggests that there are AI stocks with greater upside potential in the market. Interested parties are encouraged to review reports that highlight these promising opportunities.

In summary, the adjustment in SoundHound’s price target signifies a growing confidence in the company’s future performance, particularly with the expected benefits from its recent acquisition and upcoming financial results. The dynamics of the AI market continue to evolve, presenting both challenges and opportunities for investors.