SoundHound AI Inc (SOUN) shares surged 5.28% in pre-market trading on Monday, building on the momentum from its impressive second-quarter performance and positive analyst sentiment. The voice-based AI company has been attracting investor attention following its strongest ever quarter and recent upgrades from Wall Street analysts.
The rally comes after SoundHound AI reported exceptional Q2 results last week, beating expectations by a wide margin. The company posted an adjusted loss of 3 cents per share, narrower than the expected loss of 5 cents. More impressively, revenue soared 217% year over year to $43 million. CEO Keyvan Mohajer called it the company's "strongest ever quarter," highlighting the growing demand for SoundHound's AI-powered voice solutions.
Adding to the positive sentiment, several analysts have expressed confidence in SoundHound AI's prospects. H.C. Wainwright maintained its Buy rating on the stock, while Ladenburg Thalmann upgraded SOUN from Neutral to Buy, raising its price target from $9 to $16. The average analyst rating for SoundHound AI is now "overweight" with a mean price target of $14, according to FactSet. These upgrades reflect growing optimism about the company's growth trajectory and market position in the competitive AI landscape.