Could Investing $10,000 in SoundHound AI Stock Make You a Millionaire?

SoundHound AI (NASDAQ: SOUN) has been an incredibly popular AI investment pick over the past year. It first gained fame when it was revealed that AI giant Nvidia purchased a stake. Since the start of 2024, the stock has risen more than 350%, but it was up more than 1,000% in December. Part of this downfall occurred because Nvidia sold its entire stake in SoundHound AI, although the broader AI sell-off also harmed the stock.

Although SoundHound AI has been hit rather hard by sell-offs, it could still be a successful investment if it continues its growth trajectory.

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But is it enough to turn $10,000 into $1 million? Let's take a look.

SoundHound would need to become a world-class software company to make you a millionaire

For an investment to turn $10,000 into $1 million, it must increase in value by 100 times. This isn't a common occurrence, but it has happened multiple times in the stock market, most of the time right under an investor's nose.

SoundHound AI has a market cap of $3.9 billion, so it would need to be an almost $400 billion company in order to make you a millionaire from a $10,000 investment. That's a tall task, as some examples of $400 billion companies include giants like Netflix, Costco, and Procter & Gamble. Even some of the largest software companies like Salesforce ($268 billion) and Adobe ($169 billion) haven't reached that threshold yet.

So, SoundHound likely won't turn $10,000 into $1 million anytime soon, but that doesn't mean it can't be a successful investment.

SoundHound's software is seeing rapid adoption in multiple areas

SoundHound AI is an AI company (that should be pretty obvious from its name), but instead of focusing on text input into AI models, it focuses on audio inputs. Most of the generative AI models used today don't have the option for an audio input, which is a problem when no keyboard can be used, like in a drive-thru or while driving. This is where having top-tier audio recognition software is critical, and SoundHound AI provides that to its clients.

This caused SoundHound's revenue to rapidly grow, increasing by 101% to $34.5 million in Q4. That growth is expected to persist throughout 2025, with management guiding for $157 million to $177 million in revenue, which indicates 97% growth at the midpoint. That's an impressive growth rate, but SoundHound will need to continue that growth for multiple years to even come closer to becoming a 100-bagger.

One metric management provides to investors to give them insights into future growth is revenue backlog, which measures the remaining value of the contracts it has signed. At the end of Q4, this figure stood at $1.2 billion. Even if you subtract out the 2025 revenue prediction, that leaves over $1 billion in remaining contract value, which indicates that SoundHound will likely see this explosive growth continue for a few years.

However, with how the stock is valued, it needs that rapid growth.

The stock already priced in 2025's projected growth

Just because SoundHound's stock is down by 60% from its all-time high doesn't mean it is cheap. The stock still trades for an expensive 39 times sales, which is higher than the usual 10 to 20 times sales software companies usually trade around.

SOUN PS Ratio data by YCharts

However, most software companies aren't doubling their revenue year over year, and if SoundHound doubles its revenue this year, as management predicts, this premium will be reduced to around 20 times sales.

So, what can investors expect from SoundHound's stock? I think it all boils down to what the company does from 2026 to 2030. I think the 2025 growth is already baked into the stock price, but if SoundHound can deliver another year of revenue doubling in 2026, then the stock price could easily double in response, and the same goes for any year beyond that.

That's not enough to turn $10,000 into $1 million, but it is enough to be a successful investment and boost your portfolio returns. As a result, I think it's OK to take a swing at SoundHound's stock at these prices but keep the position size fairly small because there is plenty of risk in the investment.

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Keithen Drury has positions in Adobe, Nvidia, and Salesforce. The Motley Fool has positions in and recommends Adobe, Costco Wholesale, Netflix, Nvidia, and Salesforce. The Motley Fool has a disclosure policy.