Prediction: this artificial intelligence (AI) stock could double by 2026

The artificial intelligence revolution is not just a buzzword; it's a transformative force reshaping industries and creating unprecedented investment opportunities. Among the myriad companies vying for a slice of this burgeoning market, one voice AI specialist, SoundHound AI (NASDAQ: SOUN), has recently captured significant attention, with analysts suggesting its stock could potentially double by 2026.

SoundHound AI: A Resurgent Performer

After a challenging start to 2025, where its shares were down approximately 20%, SoundHound AI delivered a remarkable turnaround following its second-quarter 2025 earnings report on August 7. The stock surged by over 26%, injecting renewed optimism among investors. This significant jump wasn't without merit; the company's latest results painted a picture of robust growth and promising future prospects.

Phenomenal Growth Driven by Voice AI Adoption

SoundHound AI provides a sophisticated platform enabling customers across diverse sectors to develop advanced voice AI systems, including intelligent assistants, chatbots, and streamlined online ordering solutions. This innovative platform is rapidly gaining traction, with deployments spanning the automotive, hospitality, healthcare, retail, financial services, and e-commerce industries.

The numbers speak volumes: revenue more than tripled in the last quarter, hitting a record $43 million—comfortably surpassing Wall Street's $33 million estimate. Concurrently, the adjusted loss per share was reduced to a mere $0.03, outperforming the $0.09 per share expectation. This impressive financial performance occurred despite substantial increases in operational investments, with research and development expenses up 64% and sales and marketing outlay surging by 180%.

A significant driver of this growth has been new customer acquisition. SoundHound AI proudly reported that 15 large enterprise customers are now leveraging its voice-powered agentic AI platform, Amelia, a remarkable achievement given its introduction just three months prior. The company also secured "numerous wins, renewals, expansions, and cross-selling" within the restaurant industry, alongside adding a new automotive original equipment manufacturer (OEM) in China and expanding contracts with four existing financial services clients. This blend of new and expanded business underscores a powerful growth trajectory.

Sustaining Momentum: Market Potential and Intellectual Property

SoundHound AI's leadership is highly confident in its future, projecting a total addressable market (TAM) of $140 billion across various industries for its voice AI solutions. This vast market potential provides ample room for continued expansion. Furthermore, the company boasts a strong intellectual property (IP) portfolio, having been granted over 190 patents for its voice AI technologies, with another 110 pending. Such a robust IP position is crucial for maintaining a competitive edge and could unlock additional revenue streams through licensing.

Reflecting this confidence, SoundHound AI has raised its full-year revenue guidance to a range of $160 million to $178 million, an upward revision from its previous forecast. This updated guidance suggests that the company's top line could more than double in 2025 compared to last year's $85 million. Given its strong market position and expanding customer base, it wouldn't be surprising to see SoundHound AI surpass even these elevated expectations.

The Path to Doubling by 2026

The prediction of SoundHound AI's stock doubling by next year hinges on its ability to sustain its exceptional growth. While consensus estimates currently anticipate a slowdown in top-line growth for 2026 before an acceleration in 2027, several factors suggest the company could easily defy these conservative projections.

A crucial indicator is SoundHound's cumulative subscriptions and bookings backlog, which stood at an impressive $1.2 billion at the end of last year. This substantial backlog provides a clear pipeline for future revenue generation, suggesting the company is well-positioned to exceed current consensus estimates for 2026.

Even if SoundHound's growth rate in 2026 decelerates to 50% from the projected 100% increase in 2025, its revenue could still reach at least $253 million. Currently, the stock trades at approximately 47 times sales. While this valuation might seem high, it is arguably justified by the company's rapid growth. In comparison, many AI companies with slower growth profiles often command even higher premiums. Should the market continue to assign a premium valuation to SoundHound AI—even a price-to-sales ratio of 40 in 2026—this could propel the stock's market capitalization beyond $10 billion, effectively doubling its current valuation.

Given the dynamic and expanding nature of the voice AI market, coupled with SoundHound AI's proven ability to innovate and attract major enterprise clients, the possibility of even stronger growth than projected above remains a compelling prospect, potentially leading to even greater returns for investors.

Final Thoughts for the Savvy Investor

SoundHound AI represents a fascinating case study in the high-growth artificial intelligence sector. Its recent financial performance, significant customer wins, robust intellectual property, and substantial revenue backlog paint a picture of a company with strong momentum. While investing always carries risks and past performance does not guarantee future results, for those closely following the AI space, SoundHound AI's trajectory warrants serious consideration. Its potential to redefine human-computer interaction through advanced voice AI positions it as a key player in the coming years.