What's Going On With SoundHound AI Stock?

SoundHound AI, Inc. SOUN shares traded higher Thursday after Cantor Fitzgerald analyst Brett Knoblauch maintained an Overweight rating and raised the price target from $2.80 to $6.20.

What To Know:  The SoundHound analyst said the company is "uniquely positioned to take advantage of what we coin the 'AI Revolution' given its large dataset and best-in-class voice AI capabilities."

Knoblauch projects that SoundHound could generate upwards of $500 million in annual revenue, with additional adoption and product innovation reaching potentially $2 billion.

SoundHound is well prepared for the future of generative AI since the company has approximately 18 years of conversational data and is already implemented in over 1 million cars globally, he said, adding SoundHound's construction of an entire ecosystem will further add value to its voice AI.

SoundHound's restaurant market was also acknowledged in the note. With 202,000 fast-food restaurants in the U.S. at an average fee of $600 per month, the analyst estimates that SoundHound will generate between $5 and $10 in royalty revenue per car per year. 

Related Link: What's Going On With Sotera Health Stock Today?

SOUN Price Action: Shares of SOUN closed Thursday up 8.22% at $4.08 at the time of publication, according to Benzinga Pro.

Image by Gerd Altmann from Pixabay