Prediction: SoundHound AI Stock Could Be Worth $20 in 2030. Here’s the Math

Shares of SoundHound AI (NASDAQ:SOUN) have slipped close to 30% in 2026, as of this writing, but the provider of conversational artificial intelligence (AI) solutions received a major shot in the arm this month following the release of its second-quarter results on Aug. 5.

SoundHound AI stock popped more than 10% the day following its earnings release. The company increased its full-year guidance owing to the growing traction of Oasys, which it claims is the world's first self-learning agentic AI platform that helps customers build and deploy AI agents that can evaluate and improve on their own.

We will take a closer look at SoundHound's prospects in this article and see why this fast-growing tech company could significantly enhance investors' wealth through the end of the decade.

Image source: The Motley Fool.

SoundHound AI is targeting lucrative markets

SoundHound AI reported a 45% year-over-year increase in Q2 revenue to $62 million. The company noted on the earnings call that its revenue in the previous quarter was 10x higher than in the same quarter four years ago, underscoring how quickly it has been growing.

The good news for SoundHound investors is that the conversational AI market it operates in is estimated to grow at an annual pace of 24% through 2033, according to Grand View Research. The market size is estimated to jump from $17.7 billion in 2026 to nearly $79 billion by the end of the forecast period.

SoundHound's growth rate suggests that it is cornering a bigger share of this market. Importantly, the company's acquisitions and product development moves should ideally ensure it continues to gain share in this fast-growing niche. SoundHound management noted in its recent press release that the enterprise adoption of Oasys is playing a central role in boosting growth.

SoundHound management points out that it "signed an eight-figure commitment in less than 90 days from the initial demo to contract signature," which is impressive, given that Oasys was launched just three months ago. It is easy to see why Oasys has gained significant traction in the market. The agentic AI platform can be deployed in call centers, vehicle infotainment systems, restaurants, hospitality, retail, drive-thru chains, and other applications.

SoundHound believes Oasys could help it capitalize on the overall agentic AI software market, which the company notes could be worth a whopping $1 trillion in 2030, according to Gartner. In all, SoundHound is poised to capitalize on two durable catalysts: conversational AI and agentic AI.

Importantly, the company is focused on expanding its wings further in conversational AI with the acquisition of LivePerson, which it expects to close by the end of 2026. LivePerson seems like an ideal fit for SoundHound, as it enables enterprise customers to build conversational AI solutions, such as voice assistants, and helps them stay in touch with their clients across various channels.

SoundHound's acquisition of LivePerson should unlock another major growth opportunity for the company, enabling it to target the lucrative cloud communications market. Mordor Intelligence estimates that the cloud communications market could grow from $23.5 billion in 2026 to $45.6 billion in 2031.

In all, it is easy to see why analysts have become bullish about SoundHound's growth prospects for 2026 and 2027.

SOUN Revenue Estimates for Current Fiscal Year data by YCharts

However, they seem to be underestimating its growth potential. SoundHound expects $245 million in revenue in 2026 at the midpoint of its guidance range. That would be a 45% jump over last year. Also, the forecast for 2027 points toward a significant slowdown in growth, which seems unlikely considering SoundHound's expansionary moves, growing customer base, and the secular growth of the conversational AI market.

Stronger growth should send this stock soaring by the end of the decade

We have seen that SoundHound AI is outpacing the 24% annual growth rate projected for the conversational AI market. Also, the company's foray into the cloud communications space is another reason why we can expect it to easily outperform consensus expectations over the long run.

Assuming SoundHound's revenue grows at 45% between 2027 and 2030 (in line with its projected growth in 2026), its top line could reach $1.1 billion by the end of the decade. If this AI stock trades at 8 times sales at that time, almost in line with the U.S. tech sector's average sales multiple, its market cap could reach $8.8 billion.

That's 2.8x SoundHound's current market cap, which will be enough for this tech stock to reach a price of $20 by 2030. So, investors looking to buy and hold a top AI stock for the long run can consider adding SoundHound to their portfolios, considering its healthy upside potential.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.