SoundHound AI's Strategic Growth Through M&A and AI Infrastructure: An Undervalued Play in the AI Energy and Onshoring Boom

In the rapidly evolving landscape of artificial intelligence (AI), infrastructure has emerged as a critical battleground. As global demand for AI accelerators surges—projected to grow at a 37.4% CAGR through 2032AI Accelerator Chip Gold Rush: Inside the Global Race for a $300B Market by 2030^[1]—companies that align with onshoring trends and energy-efficient innovation are capturing investor attention. SoundHound AI (NASDAQ: SOUN), a voice and conversational AI leader, is quietly positioning itself as an undervalued player in this infrastructure boom through strategic M&A, enterprise partnerships, and a focus on high-growth verticals.

Strategic M&A: Expanding Capabilities in Enterprise AI

SoundHound AI's acquisition of Amelia for $80 million in 2025Where Will SoundHound AI Be in 3 Years?^[2] underscores its commitment to expanding conversational AI into healthcare, insurance, and retail. This move not only diversifies its client base but also aligns with the broader trend of enterprises allocating $175–$250 billion to AI by 2027Enterprise Agentic AI Market - Global Forecast 2025-2030^[3]. Amelia's agentic AI capabilities enable automated customer service workflows, reducing operational costs for clients while enhancing SoundHound's revenue streams. According to a report by Research and Markets, the enterprise agentic AI market is projected to grow at a 27.1% CAGR through 2030Enterprise Agentic AI Market - Global Forecast 2025-2030^[4], a trajectory SoundHound is well-positioned to capitalize on.

Partnerships and Onshoring Synergies

While SoundHound is not directly involved in energy-efficient hardware production, its enterprise solutions indirectly support onshoring initiatives. For instance, its collaboration with Acrelec to deploy AI-powered drive-thru systems in quick-service restaurants (QSRs) streamlines labor and reduces operational energy wasteSoundHound AI and Acrelec Partner to Power the Next Generation of AI-Powered Drive-Thrus^[5]. Similarly, its integration into automotive systems for brands like Hyundai and StellantisWhere Will SoundHound AI Be in 3 Years?^[6] aligns with the U.S. government's push for domestic manufacturing. As the CHIPS and Science Act incentivizes domestic AI infrastructureTailwinds in AI Infrastructure Amid Onshoring for National...^[7], SoundHound's voice AI tools—used in in-car infotainment and driver-assistance systems—complement onshoring efforts by enhancing productivity in key industries.

Infrastructure Investments and Revenue Momentum

SoundHound's Q2 2025 results highlight its growth potential: revenue surged 217% year-over-year to $42.68 million, driven by cross-selling opportunities post-acquisitionSOUN Q2 Deep Dive: Revenue Surges on Broad AI Adoption^[8]. The company now projects $160–$178 million in 2025 revenue, with a $1.2 billion backlog of future bookingsSoundHound AI (SOUN) Raises Earnings Outlook For 2025^[9]. While it remains unprofitable—burning $22.3 million in Q1 2025Is SoundHound AI Stock a Buy?^[10]—its focus on cost discipline and scaling its Voice Commerce ecosystem suggests a path to adjusted EBITDA profitability by year-endSoundHound AI Shares Soar Following Key Partnerships^[11].

The Undervaluation Thesis

Despite its momentum, SoundHound trades at a 38x trailing sales valuationAI Hype Meets Reality: Valuation Concerns Fuel Tech Sell-off^[12], a discount to peers like Broadcom (AVGO), which is projected to derive 40% of revenue from AI by 2026AI Accelerator Chip Gold Rush: Inside the Global Race for a $300B Market by 2030^[1]. This undervaluation stems from its current unprofitability and the broader market's skepticism about AI commercial viabilityAI Hype Meets Reality: Valuation Concerns Fuel Tech Sell-off^[13]. However, as onshoring and AI infrastructure spending accelerate—exemplified by NVIDIA's $500 billion U.S. AI supercomputer investmentTRUMP EFFECT: A Running List of New U.S. Investment in...^[14]—SoundHound's enterprise-focused voice AI solutions are poised to benefit from sustained demand.

Risks and Considerations

Investors must weigh SoundHound's high burn rate against its growth prospects. The company's reliance on converting a $1.2 billion backlog into revenue over six yearsSoundHound AI (SOUN) Stock Explodes 14% as Revenue Soars 151%^[15] introduces execution risk. Additionally, while its partnerships align with onshoring trends, it lacks direct involvement in energy-efficient hardware or data center infrastructure, areas where competitors like Intel and NVIDIA are securing government subsidiesAI GPU Growth Directly Impacts Carbon Emission ...^[16].

Conclusion: A Strategic Bet on Enterprise AI Adoption

SoundHound AI's strategic M&A, enterprise partnerships, and focus on high-growth verticals position it as an undervalued play in the AI infrastructure boom. While it may not directly address energy consumption or onshoring manufacturing, its role in automating customer service, healthcare, and automotive operations aligns with the broader demand for AI-driven productivity. As the AI accelerator market balloons and onshoring policies gain traction, SoundHound's ability to scale its Voice Commerce ecosystem could unlock significant value for investors willing to bet on enterprise AI adoption.