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SoundHound AI (SOUN) stock is inching lower on Thursday after Nitesh Sharan, the company’s chief of finance, announced his plans to step down on April 3. In its press release, the company confirmed that co-founder James Hom will take over as interim CFO as Sharan exits to join a quantum computing firm in a similar capacity.
Versus its year-to-date high, SoundHound stock is now down roughly 40%, but a D.A. Davidson analyst believes it will recover sharply as the year unfolds.
Why Did SoundHound Stock Sink on Thursday?
SOUN shares tumbled on the announcement primarily because Sharan was instrumental in scaling the voice AI firm, overseeing an eight-fold increase in revenue during his four-year tenure.
While the company confirmed that he was leaving for a “personal opportunity” — muting fears of hidden operational risks or internal disagreements — the timing, nonetheless, unsettled investors.
Why? Because SoundHound currently stands at a critical juncture, balancing a massive $1.2 billion subscription backlog and ambitious 2026 revenue guidance against persistent net losses.
At the time of writing, its relative strength index (14-day) sits at about 33, signaling more room to the downside before the AI stock hits oversold territory.
Analyst Sees SOUN Shares Doubling From Here
Senior D. A. Davidson analyst Gil Luria recommends long-term investors treat this pullback as a buying opportunity.
Maintaining his $14 price objective on SoundHound shares in a research note this morning, Luria dubbed the transition “orderly,” adding that Hom’s appointment as interim CFO offers essential continuity.
The company’s strategic partnerships with the likes of Nvidia (NVDA) and expanding footprint across QSR (quick service restaurants) and the automotive industry positions it uniquely for the agentic AI era.
The D. A. Davidson analyst also cited management’s guidance for at least $225 million in revenue this year, up 33% versus 2025, for his constructive view on Thursday.
SoundHound Remains a Buy-Rated Stock
Other Wall Street analysts seem to agree with Luria on SoundHound AI.
According to Barchart, the consensus rating on SOUN stock sits at “Moderate Buy,” with price targets as high as $20 indicating potential for a more than 200% increase from here.
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