Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 20 May, 26 | SOUN | Buy | USD 8.45 | USD 8.9 | USD 9.3 | 12 days | Closed |
10.53%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant. The company's products also include CaiNET software that uses machine learning to enhance how domains work together to handle queries; CaiLAN software that arbitrates responses so users get answers from the right domain; Dynamic Interaction a real-time, multimodal customer service interface; Smart Ordering which offers an easy-to-understand voice assistant for restaurants; Employee Assist; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; and embedded voice solutions. The company was founded in 2005 and is headquartered in Santa Clara, California.
Increase in Revenue: USD 44.2 Mn in Q1FY26 vs USD 29.1 Mn in Q1FY25
Growth in GAAP Gross Profit: USD 13.7 Mn in Q1FY26 vs USD 10.6 Mn in Q1FY25
Decline in GAAP Gross Margin: 31.1% in Q1FY26 vs 36.5% in Q1FY25
Increase in Sales and Marketing Expenses: USD 19.2 Mn in Q1FY26 vs lower comparative level in Q1FY25
SoundHound AI remains exposed to risks related to continued operating losses, integration challenges from acquisitions, high dependence on enterprise AI adoption trends, rising competitive intensity in conversational AI, and potential execution risks associated with scaling its OASYS platform and LivePerson acquisition
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 8.45 | 7.6 | 8.9 | 9.3 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
AI-Driven Revenue Expansion: SoundHound AI delivered strong Q1FY26 revenue growth, supported by rising adoption of its voice and agentic AI solutions across automotive, enterprise AI, healthcare, restaurants, and financial services. Revenue increased 52% YoY to USD 44.2 million, while the company’s automotive and IoT AI business grew 88% excluding acquisitions. The expanding enterprise footprint and increasing customer diversification continued to strengthen business momentum.
Launch of OASYS Strengthens Competitive Positioning: During Q1FY26, SoundHound AI launched OASYS, its self-learning orchestrated agentic AI platform designed to automate the full AI lifecycle. The platform allows enterprises to rapidly deploy and continuously optimize AI agents across multiple channels, including vehicles, phones, kiosks, TVs, and web applications. OASYS also integrates the company’s proprietary foundation models, improving scalability and reducing long-term operating costs.
Strategic Acquisitions and Enterprise Expansion: The company continued executing its acquisition-led growth strategy through the planned acquisition of LivePerson, expected to significantly expand SoundHound’s enterprise customer base. The combined business is expected to create a USD 500 million revenue opportunity through cross-selling voice AI, messaging services, and omnichannel AI solutions. The transaction is also expected to accelerate profitability and strengthen enterprise market penetration globally.
Broad Customer Wins Across Key Verticals: SoundHound AI secured multiple enterprise contracts and renewals during Q1FY26 across automotive, retail, healthcare, financial services, energy, and telecommunications. The company signed new seven-figure automotive agreements, expanded deployments with major global banks and insurers, and increased adoption of its restaurant AI solutions. Strong traction in voice commerce and AI-enabled drive-thru technologies further reinforced growth opportunities.
Strong Liquidity Supports Long-Term Growth Investments: The company exited Q1FY26 with cash and cash equivalents of USD 216 million and no debt, providing financial flexibility to support future investments and acquisitions. Management reaffirmed FY26 revenue guidance of USD 225 million to USD 260 million while continuing to invest in proprietary AI models, infrastructure optimization, and enterprise platform expansion to drive future profitability and operational efficiencies.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to SoundHound AI, Inc. (NASDAQ: SOUN) at the closing market price of USD 8.45, as on 19 May,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SOUN SoundHound AI Inc |
-0.74 8.39% | 8.08 | - | - | 74.94 | 17.04 | 73.58 | -25.4189 |
| SAPGF SAP SE |
-8.99 4.75% | 180.40 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
-10.15 5.32% | 180.67 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| CRM Salesforce.com Inc |
-10.23 5.09% | 190.61 | 23.99 | 14.14 | 4.16 | 2.58 | 3.85 | 12.75 |
| INTU Intuit Inc |
-10.7 3.32% | 311.44 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 20, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
