SoundHound AI Stock Outlook: What Investors Can Expect Over the Next Year

Artificial intelligence (AI) audio agent company SoundHound AI (SOUN +0.69%) has disappointed shareholders thus far in 2026. As of this writing, the stock is down 41.6%, while the S&P 500 has climbed 12.8% over the same period.

Based on analyst forecasts, 2027 could offer a better performance, but even with those forecasts, a note of caution is warranted.

Image source: The Motley Fool.

Overall, based on analyst price targets, there could be significant upside for SoundHound stock by October 2027. The stock doesn't receive much coverage, but among the eight analysts tracking it, the median one-year price target is $13.50, according to CNN. From the Oct. 2 closing price of $5.84, that would be a gain of 131%.

The most bullish target, $17, would represent a 191% gain, and even the lowest target, $7, is a nearly 20% gain.

However, that is still based on a small group of analysts, and price targets aren't guarantees; they essentially offer sentiment around an investment more than anything else. In addition, based on the risks, those targets seem a bit optimistic, even a year out.

SoundHound is an intriguing investment, but it comes with plenty of uncertainty. On the one hand, it has managed to line up an impressive list of clients, from the car manufacturer Stellantis to the restaurant chain Five Guys, giving it an early lead in the audio AI agent space. And after it closed the acquisition of LivePerson in September, SoundHound could become an even more robust platform. Whereas SoundHound's specialty is in the audio space, LivePerson's is messaging, with its AI agents handling tasks like automated texts or email replies for a business.

At the time of the acquisition announcement in April, SoundHound expected its 2027 revenue totals to fall within a range of $350 million to $400 million, with $100 million of growth from sales contributions from LivePerson's customers. For context, SoundHound's 2025 full-year revenue was $168.9 million, so the climb up to as much as $400 million so soon is promising.

That said, the risks remain significant. Regarding the LivePerson deal, one risk is that the synergies SoundHound expects will take longer than anticipated to materialize or may not materialize at all. Also, the AI agent space is becoming increasingly competitive. Hence, an additional threat is that a much larger company with a bigger bankroll, such as Alphabet, Amazon, or Microsoft, could start encroaching on SoundHound's market. Even the start-ups OpenAI and Anthropic could broadly be considered indirect competitors with their AI agents.

With all that in mind, I still view SoundHound as worthy of a small, speculative position in a portfolio. But making meaningful wealth from the stock will take more time. SoundHound has to execute on integrating LivePerson and demonstrate the expected revenue growth and operational efficiencies the merger created, or, better yet, exceed expectations. For the short term, I don't see too many catalysts that would send the stock price higher.

That's why I would also be comfortable sitting on the sidelines and not buying it or adding to a position. If it starts to move higher on company-specific news over the next year, that at least shows it has renewed momentum. And if it heads lower, that may provide a more favorable entry point for long-term investors.