Daniel Ives Weighs In on SOUN Stock as AI M&A Momentum Picks Up
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Story by Marty Shtrubel • 18h
SoundHound AI ( NASDAQ:SOUN), a specialist in AI-powered voice technology, is emerging as a key player in the AI-driven M&A wave that’s starting to unfold. The AI revolution has created fertile ground for acquisitions, especially with the new administration easing regulatory scrutiny. With fewer barriers in place and a large pool of capital waiting to be deployed as capital markets stabilize, many tech names are now positioning themselves to acquire AI innovators with strong products and advanced capabilities.
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That dynamic, according to Wedbush analyst Daniel Ives, sets the stage for a surge in deal activity.
“We believe that the M&A floodgates are ready to open as large-scale tech players look to add more AI capabilities and applications to capitalize on the massive spending wave taking place,” said Ives, who ranks among the top 4% of Street stock experts.
With cash reserves across the tech sector waiting to be put to work – particularly to strengthen AI initiatives – Ives anticipates that several companies will pursue acquisitions in the months ahead. SoundHound is already demonstrating enthusiasm for this strategy. Although still in what Ives describes as the “initial stages of growth,” SoundHound has quickly established itself as a significant acquirer in the AI sector, leveraging its cash reserves to pursue accretive deals.
Its most recent purchase, Interactions, marked SoundHound’s first acquisition of 2025 and brought its total number of completed deals to four. The others include Amelia, a conversational AI developer for enterprise customer service and IT support; SYNQ3, which delivers voice AI solutions for restaurant ordering and engagement; and Allset, a restaurant ordering and pickup platform that connects businesses with customers. Interactions, meanwhile, is recognized for its hybrid AI that combines human and machine capabilities to deliver more advanced customer engagement. Collectively, these moves broaden SoundHound’s opportunities in voice AI, expanding its customer base while enhancing its platform to meet the growing demand for improved customer experience solutions.
By continuing to target accretive acquisitions, Ives believes SoundHound is not only boosting recurring revenue but also improving profitability through cost synergies, while unlocking greater cross-sell and upsell potential across its enlarged customer network.
“With $270 million in cash on the balance sheet with no debt outstanding, we believe the company is well-positioned to keep the momentum going by adding more capabilities to its portfolio and capitalizing on the growing demand for voice AI solutions,” Ives summed up.
Overall, Ives assigns SOUN shares an Outperform (i.e., Buy) rating, though his $16 price target indicates the shares are fully valued right now. (To watch Ives’ track record, click here*)
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