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The latest update trims SoundHound AI’s modeled fair value from US$17.19 to US$16.31 and nudges the discount rate from 8.42% to 8.43%. This combination reflects slightly more cautious long term expectations while still acknowledging progress. Revenue growth assumptions shift from 34.68% to 32.90%. This lines up with a mixed read on recent results, where solid execution, a large IoT contract and growing APAC traction sit alongside questions about organic momentum and the consistency of future deal flow. As you read on, you will see how these cross currents are shaping the story around SoundHound AI and how you can keep on top of this changing narrative over time.
Stay updated as the Fair Value for SoundHound AI shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on SoundHound AI.
🐂 Bullish Takeaways
Piper Sandler lifted its SoundHound price target to US$15 from US$12 after quarterly results, which signals a more constructive stance on what the firm sees in the recent update.
The firm highlights that results came in slightly better than its expectations, which supports the view that execution is tracking at least in line with what some analysts are modeling.
Piper Sandler points to a large IoT contract and growing traction in APAC as key positives, suggesting that new deals and regional expansion are important drivers in the current narrative around growth momentum.
🐻 Bearish Takeaways
Despite the higher price target, Piper Sandler keeps a Neutral rating, which signals ongoing reservations about risk and reward, including how much upside may already be reflected in the share price.
The firm also notes that the Q4 organic guidance was implicitly lowered, which adds a caution flag around the consistency of underlying growth and may keep some analysts focused on execution quality and near term visibility.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NasdaqGM:SOUN 1-Year Stock Price Chart
SoundHound AI and TomTom announced a partnership to build a unified in-car AI voice and navigation experience that links voice assistants with routing, charging station search, and other in-car functions. The companies plan a joint showcase at CES 2026 in Las Vegas.
SoundHound AI introduced its Amelia 7 agentic AI platform for vehicles, TVs, and smart devices. The company describes agents that can order food, make reservations, pay for parking, and book travel. It also plans a first live demo of Vision AI for vehicles at CES 2026.
The company announced a new partnership with OpenTable to power an in-vehicle conversational reservations agent. This will let drivers find and book restaurant tables worldwide by voice as part of its in-car voice commerce platform. The solution is also set to appear at CES 2026.
SoundHound AI expanded its collaboration with Parkopedia to launch a voice AI parking agent that can search for parking, show real-time availability, surface offers, and complete payments by voice within the vehicle. The joint solution is expected to be highlighted at CES 2026.
Story Continues
Fair Value: Trimmed from US$17.19 to US$16.31, representing a small step down in the implied long term value per share.
Discount Rate: Edged up slightly from 8.42% to 8.43%, which indicates a marginally higher required return in the model.
Revenue Growth: Reduced from 34.68% to 32.90%, reflecting a modestly lower growth assumption in the updated forecast.
Net Profit Margin: Raised from 12.34% to 12.75%, pointing to slightly higher expected profitability over time.
Future P/E: Lowered from 239.85x to 229.45x, which suggests a somewhat less demanding valuation multiple in the refreshed assumptions.
Narratives on Simply Wall St let you tell the story behind a company in plain language, then tie that story to your own forecasts for revenue, earnings and margins, and finally to a fair value. They connect what a business is doing to what you think it is worth, and compare that fair value to the current price. Narratives sit inside the Community page, are easy to follow or create, and update automatically as fresh news or earnings are added.
Head over to the Simply Wall St Community and follow the Narrative on SoundHound AI to stay on top of the story behind the latest numbers:
How expansion across automotive, restaurants, enterprise and other industries, and new partnerships, tie into customer diversification and recurring revenue opportunities in the fair value model.
Why assumptions around 32.9% annual revenue growth, a 12.1% profit margin in line with the US Software industry and a 228.2x future P/E sit at the core of the US$16.31 fair value.
What could challenge this view, including ongoing losses, higher operating costs, reliance on large deals and competition across key markets, and how that feeds into risks for future forecasts.
Read the full SoundHound AI Narrative on Simply Wall St and sense check the assumptions against your own view of the business.
Curious how numbers become stories that shape markets? Explore Community Narratives
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SOUN.
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