SoundHound AI stock continued its roller-coaster ride on Thursday. SOUN stock bounded higher after getting a price-target hike from a Wall Street analyst.
H.C. Wainwright analyst Scott Buck on Thursday reiterated his buy rating on SOUN stock and raised his price target to 8 from 7.
On the stock market today, SoundHound stock jumped 5.7% to close at 6.63.
On Wednesday, SOUN stock tumbled 17.1% to 6.27 following the company's third-quarter report.
In a client note, Buck said he was surprised to see SoundHound shares decline so much after the Q3 report. After all, the maker of conversational AI voice technology beat estimates for revenue and forecast positive adjusted earnings by the end of 2025.
"Given the stronger-than-expected operating results and favorable outlook, we were somewhat surprised to see SOUN shares decline 17.1% vs. a 0.9% decline in the Russell 2000 in Wednesday trading," Buck said.
He added, "We expect the company to continue to execute against its strategy in coming quarters, growing revenue, expanding gross margin, and pushing towards positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), which, in our view, should push shares higher."
SOUN Stock Riding AI Investment Wave
SoundHound stock also should continue to attract investor attention because of its exposure to the artificial intelligence megatrend, Buck said.
The company counts AI chipmaker Nvidia as an investor.
SoundHound's technology is used by companies to interact with customers in call centers and restaurant drive-thrus. Its voice-response technology also can be found in cars and televisions.
On Nov. 7, SOUN stock broke out of a cup-with-handle base at a buy point of 6.25, according to IBD MarketSurge charts.
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