What will SoundHound AI look like in 1 year?

However, the underlying reality is not so unstable. Sound Hound has proven its technology by signing contracts with new customers, obtaining additional patents, and increasing the number of real-world application cases.

Soundhound is an early leader in the field of voice AI technology. The company has already obtained more than 270 patents covering everything from speech recognition to natural language processing. However, not only is AI technology patented by the company, but it also legally protects integration methods with use cases. For example, the company has obtained dozens of patents covering technology to expand advertising platforms, consumer electronics, and music services.

The AI voice technology industry is still in its infancy, but investors are already seeing what tech giants think about this industry. In 2022, Microsoft acquired voice AI company Nuance for approximately $20 billion. This year, Apple announced a large-scale partnership with OpenAI to drastically evolve AI functions, including the company's virtual assistant Siri.

Over the past 12 months, Soundhound has raised $50.8 million in revenue. Management predicts that sales will fall between $65 million and $77 million for the full year of 2024. As for next year, analysts expect earnings to jump close to 104 million dollars. Due to this strong growth, Wall Street has set an average stock target price of 7.43 dollars, which is an 88% premium over current stock prices.

It's true that Soundhound's growth trajectory is moving in the right direction, but the next few quarters won't determine whether the company is good or bad. Also, short-term target stock prices are often off the mark, especially for such early-stage companies.

The point is that Soundhound will become a stronger company over the next year. It should obtain more patents, acquire more customers, and increase profits. There is a high possibility that stock prices will become unstable in the face of short-term analysts' predictions and general market sentiment, but Soundhound investors should look at it in the long run.

Stock prices carry a high valuation of 19 times sales, but Soundhound's overall market capitalization of 1.3 billion dollars is still attractive for long-term possibilities, especially when compared to historic voice AI acquisitions such as Nuance's 20 billion dollar acquisitions.

The next year should be very positive for Sound Hound on the business side. However, it is the next 10 years that will ultimately determine whether today's stock purchases will pay off. If the proposition of high risk and high return can be accepted, then Soundhound is a great brand for growth-oriented investors seeking maximum upside potential.