SoundHound AI: Could the Stock 10X by 2030?

SoundHound AI (NASDAQ: SOUN) is a fairly popular artificial intelligence (AI) investment option despite its small size. However, its small size is exactly why investors are drawn to it. Smaller companies can grow much faster, especially if their product takes off and becomes mainstream. SoundHound AI is in the right place at the right time with massive AI investments going on, and this could produce incredible returns.

While most investors would be happy if a stock doubled in five years, what if it increased tenfold in value? Let's take a look to see if SoundHound AI has that capability, and what it would take to get there.

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SoundHound AI is seeing adoption in many sectors

SoundHound AI's platform combines audio recognition technology with generative AI. The applications for this are practically endless, as there are many human interactions that could be automated using this technology. One of the first places SoundHound AI saw widespread adoption was in the restaurant industry. This is a relatively low-risk area, and if an AI agent screws up an order, it's not the end of the world. However, SoundHound AI is moving into more consumer industries that have an incentive for their AI agents to be as accurate as possible.

One of the biggest areas that SoundHound AI's product could be used in is customer service, specifically in the insurance, healthcare, and financial sectors. These industries employ massive numbers of people in their customer service departments. If they can be replaced by software from SoundHound AI, that opens up massive cost savings for the client and a huge revenue opportunity for SoundHound AI.

While widespread deployment of SoundHound AI's product isn't here, each quarter, more and more companies sign on to try to deploy SoundHound AI's platform. This has led to strong growth, with revenue in the fourth quarter rising 59% year over year. That's fantastic revenue growth that any early-stage investors would be happy with. As long as SoundHound AI continues along that growth trajectory, investors are set to make a solid return on their investment.

But is it enough for the stock to rise tenfold?

SoundHound AI needs to grow at a fast pace to achieve this goal

At today's current market cap of $3.5 billion, a 10x in the stock only yields a $35 billion company. That's really not that large compared to some of the tech giants out there, so this isn't an unachievable goal.

To achieve 10x growth in five years, it requires a compound annual growth rate (CAGR) of 58%. That's exactly how quickly SoundHound AI is growing now, so if it sustains this growth rate, it can achieve the lofty goal of growing tenfold in five years.

However, Wall Street isn't as bullish on the stock. For 2026, analysts expect 38% revenue growth and 20% next year. That's well short of where SoundHound AI needs to be to deliver 10x returns, but I don't think investors need to fret.

SOUN Revenue (Quarterly YoY Growth) data by YCharts

SoundHound AI can still outperform the market over the next few years if it grows at a respectable 20% pace. That would indicate the product is seeing strong adoption, and could lead to some big client wins along the way. I'm not expecting my SoundHound AI shares to rise tenfold over the next five years, but I think expecting the stock to double over the next five years is entirely reasonable. If it does that, it will outperform the vast majority of stocks in the stock market, making it a successful investment.

However, SoundHound AI may not catch on, or another product from a leading generative AI firm could disrupt it. As a result, I'm not going all-in on the stock. Still, I think it deserves a spot in the high-growth section of a portfolio.

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