SoundHound AI, Inc. (SOUN): A Bull Case Theory

We came across a bullish thesis on SoundHound AI, Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on SOUN. SoundHound AI, Inc.'s share was trading at $8.46 as of January 30th.

SoundHound AI (SOUN) is a voice artificial intelligence company specializing in advanced speech recognition and conversational AI across customer service, in-vehicle voice assistants, restaurant ordering, and delivery use cases. The company’s core strength lies in its proprietary language-understanding technology, which enables fast, accurate, and highly customizable voice interactions.

Unlike generic voice assistants from Big Tech, SoundHound’s platform is designed to be embedded directly into enterprise workflows, allowing clients to tailor voice experiences to specific use cases. Its customer base spans automotive OEMs, restaurant chains, and enterprise clients, positioning the company at the intersection of mobility, commerce, and AI-driven automation.

Despite this positioning, SOUN’s stock has declined more than 50% over the past two months, creating what the thesis views as a compelling opportunity. The pullback has occurred even as the long-term opportunity for voice AI remains substantial, with the total addressable market estimated at over $140 billion. SoundHound’s model is inherently scalable, as it monetizes usage by taking a small fee on each transaction or order completed through its voice platform.

As voice interfaces expand beyond food ordering into broader commerce and navigation use cases, the revenue potential per user could increase materially. CEO Keyvan Mohajer has highlighted this expansion, noting that drivers can already use voice to find parking, restaurants, flights, hotels, concert tickets, and movie tickets while on the road, illustrating how voice AI can become a central interface for everyday decisions.

Financially, the company remains unprofitable but shows strong momentum and balance-sheet strength. Revenue grew 68% year over year, demonstrating accelerating adoption, while SoundHound holds approximately $269 million in cash with zero debt. This provides meaningful runway to continue scaling its platform, expand enterprise partnerships, and capitalize on the growing demand for voice-driven AI solutions, supporting the case for a potential recovery in the stock as execution continues.

Previously, we covered a bearish thesis on SoundHound AI, Inc. (SOUN) by Stefan Waldhauser in May 2025, which highlighted extreme valuation, mounting losses, aggressive acquisitions, and unsustainable cash burn. SOUN’s stock price has depreciated by approximately 17.62% since our coverage. Denis Gorbunov shares a contrarian view but emphasizes scalable voice AI adoption, strong revenue growth, and balance-sheet strength.

SoundHound AI, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held SOUN at the end of the third quarter which was 19 in the previous quarter. While we acknowledge the risk and potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOUN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.