Key Points
SoundHound AI (NASDAQ: SOUN) has become a popular investment pick among artificial intelligence investors because it's one of a handful of pure-play AI stocks that are performing phenomenally well. There was significant hype surrounding SoundHound AI's stock at the end of 2024, when it peaked at around $24. The stock immediately sold off in 2025, but has steadily recovered as its financial results have started to live up to the hype that was built into the stock.
SoundHound AI is still down around 40% from its all-time high, but its business is looking stronger than ever. Given this level of success, is it possible that a modest $10,000 investment could yield $1 million? Let's take a look.
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SoundHound AI's technology will become more widespread over the next few years
Using audio recognition technology with AI isn't a new concept. Products like Siri and Alexa have been around for some time, but their performance leaves much to be desired. SoundHound AI's products enable a more lifelike interaction between users and their AI counterparts, and also outperform humans in certain instances, such as processing a drive-thru order.
Automating drive-thrus is one popular use case for SoundHound's technology. Another is digital assistants in vehicles. For years, these audio assistants weren't very useful and only had a limited use case. While this technology hasn't been rolled out in North America, regions spanning from Japan to Europe have already implemented SoundHound AI's technology in vehicles, and we can expect to see it in the U.S. shortly.
SoundHound AI's target markets are any interaction between two humans that an AI agent could perform. That's a massive market opportunity, and spans from the financial to the healthcare industries. As AI technology evolves, the possibilities for SoundHound AI's product usage are virtually limitless, which could make it a rare millionaire-maker stock.
But is that a realistic goal?
A return of 100 times is unlikely, but market-crushing returns are possible
SoundHound AI is currently valued at $6 billion. So, for it to turn $10,000 into $1 million, it would be worth $600 billion. That would value SoundHound AI about the same as Visa, which would require SoundHound AI's technology to be used by almost every business. That's likely a bit far-fetched, but it's not out of the question if SoundHound's technology has widespread use.
In its most recent quarter, SoundHound AI delivered impressive revenue growth of 217%, bringing its trailing 12-month total to $131 million. On SoundHound AI's conference call, management claimed that it can grow organically (meaning growth without acquisitions) by 50% annually for the "foreseeable future."
That's a tall task, but how long would it take for SoundHound AI to achieve 100x returns at that rate? At a 50% growth rate, SoundHound AI would increase its revenue 100-fold in just over 11 years. That's a long time to grow that fast, but with the potential market opportunity surrounding automation with AI, it's not out of the question.
However, I still think it's incredibly unlikely to occur. I doubt that SoundHound AI will be able to turn $10,000 into $1 million, but I think SoundHound AI may be a winning stock pick over the next decade. It's also a risky pick, as it could be disrupted by any one of the AI hyperscalers, so investors need to keep their position sizing relatively small to account for the risk. If investors can do that, I think SoundHound AI is a smart stock pick here, especially if it can maintain its rapid growth pace for he foreseeable future, as management projects.
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Keithen Drury has positions in Visa. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.