Is This $7 Stock Your Ticket to Becoming a Millionaire?

SoundHound AI (NASDAQ: SOUN) stock has gone on quite the roller-coaster ride over the past few years. It was trading below $2 a share in January 2024, but topped out at over $24 per share at the end of that year. It nearly hit that high again in late 2025, but has come down significantly since then, and now trades at just over $7 per share. While hype about the company may have driven its stock up and the vacuum left behind when that buzz dissipated caused it to sink, SoundHound AI has been doing pretty well on the business front.

It has several exciting propositions that could make it a giant in the AI space, but could it be your ticket to becoming a millionaire?

Image source: Getty Images.

SoundHound AI is growing quickly

When measuring a single stock's potential to make an investor a millionaire, I think setting the initial investment at $10,000 is reasonable. Starting from an investment of that size, the stock would need to deliver a 100x return to transform the stake into a $1 million position.

Does SoundHound AI have that kind of upside potential? Today, it has a $3.12 billion market cap, so it would need to grow into a $312 billion company -- which is still smaller than another hot AI software stock, Palantir (NASDAQ: PLTR), which is now valued at $420 billion. Palantir's tools for integrating AI features into business workflows have become quite popular. If SoundHound AI's audio recognition and AI integration software gains a similar level of popularity, then I think it's entirely possible the stock could deliver life-changing returns to long-term shareholders.

SoundHound AI's integration tools have numerous use cases, but they're currently being used to automate order taking in quick-service restaurants and drive-thrus, among other applications. Where SoundHound could really make a splash is in handling customer service interactions in the healthcare, insurance, and financial industries. If its software can replace customer service agents in a significant share of interactions, then the company could be sitting on a technological goldmine. Several clients from these industries have already signed up to test SoundHound AI's products.

This is all leading to strong financial results. In the second quarter, its revenue rose 45% year over year, and management raised its full-year outlook. It also announced a seven-figure deal signed with a large healthcare provider, showing that there is real movement behind its central aspirations. With the hype out of SoundHound AI's stock, it's actually trading at a fairly low price-to-sales ratio for a growing software company.

SOUN PS Ratio data by YCharts.

15 times sales isn't a bad price to pay for SoundHound AI's stock, and is among the lowest valuations that investors could have bought it for since early 2024. There's no guarantee that SoundHound AI's products will become widely deployed or that its software will become the dominant solution in its niche. The business faces plenty of risk in a competitive AI space. But if it does succeed, it could be a millionaire-maker stock.

Keithen Drury has positions in SoundHound AI. The Motley Fool has positions in and recommends Palantir Technologies and SoundHound AI. The Motley Fool has a disclosure policy.