SoundHound AI Inc. (NASDAQ:SOUN) is one of the 11 best software application stocks to buy now.

On February 27, Piper Sandler analyst James Fish reduced the firm’s price target on SoundHound AI Inc. (NASDAQ:SOUN) from $11 to $9. The analyst maintained a Neutral rating on the shares, which now yield an upside of more than 15%.

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Fish described the quarter as mixed, with revenue figures staying in line with consensus forecasts, a profitability miss, and stronger-than-anticipated guidance. However, he flagged concerns about the business’s current run-rate trajectory and its heavy reliance on M&A and go-gets to narrow the existing gap.

On February 26, SoundHound AI Inc. (NASDAQ:SOUN) announced its fourth quarter results. Revenue was recorded at $55.1 million, exhibiting a 59% year-over-year growth. Topline figures for the entire year doubled on a yearly basis, standing at $169 million.

During the quarter, the company closed more than 100 customer deals. These included engagements with an automotive OEM from Japan, a telecommunications company based in the U.S., and an athletic brand with global presence.

SoundHound AI Inc. (NASDAQ:SOUN) offers voice AI services to businesses, enabling them to communicate effectively with customers. It covers various industries worldwide, including automotive, media, and technology. Its proprietary platform, Houndify, provides a range of tools that enable businesses to build voice assistants, customer support, and other capabilities.

While we acknowledge the potential of SOUN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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