One effective strategy for uncovering potential portfolio additions is to seek out stocks trading at a significant discount to their average analyst price targets. While investors should never buy solely based on this metric without conducting their own due diligence, using it as a screening tool can quickly focus attention on names that could have substantial upside ahead.
Wall Street is currently bullish on two such names: IonQ (IONQ) and SoundHound AI (SOUN). The average analyst price target for IonQ stands at $74.89, while the stock currently trades at approximately $33.30. That implies a potential upside of 125% from current levels. Meanwhile, according to Yahoo! Finance, the average price target on SoundHound AI is $16.31. With the stock hovering around $7.50, that forecast points to a 117% gain.
If these stocks deliver those kinds of returns, buying them at today’s prices would be a no-brainer. But are they slam-dunks?
Both IonQ and SoundHound AI fall into the high-risk, high-potential-reward category.
IonQ is a pure-play quantum computing company with no other business lines to fall back on. It must achieve commercial relevance in quantum computing, or it faces an existential threat. The quantum computing space features multiple competing technological approaches, and IonQ has chosen a less common path: trapped-ion qubits. While each approach has its pros and cons, the trapped-ion method’s biggest advantage is superior accuracy. Error correction and mitigation represent the primary challenges facing all quantum computing companies today, so having an edge in this area is critical. IonQ currently holds the world record for quantum computing accuracy by one key benchmark. If it can maintain this lead, it stands a strong chance of emerging as a major winner in the quantum space.
SoundHound AI is combining voice recognition technology with generative AI. This combination addresses a massive potential market, as its software could eventually replace human workers across numerous customer interaction scenarios. These include taking drive-thru orders at restaurants—an area where SoundHound AI already performs well for many clients—and handling customer service calls. If SoundHound AI’s technology can effectively replace or supplement customer service representatives, it could achieve massive success in a huge addressable market.
While the bull cases for both stocks are fairly clear, the paths to their price targets are cloudier. Since October 2025, the market has been selling off higher-risk names as investors rotate into steadier options. SoundHound AI and IonQ have both been victims of this shift. However, that dynamic could reverse at a moment’s notice if the market’s appetite for risk rebounds.
That shift should eventually occur, but does it make sense to buy these two right now?
IonQ is generating some revenue, but it comes primarily from contracts rather than large-scale hardware sales. As a result, valuing IonQ using traditional metrics like the price-to-sales ratio—which currently stands at a lofty 94—isn’t particularly meaningful. A better approach is to consider the company’s potential market opportunity and how much of a lead IonQ has established in capturing share of that market. Right now, IonQ holds a sizable competitive advantage. By one estimate, the annual quantum computing market opportunity could reach approximately $72 billion by 2035. That kind of potential makes IonQ, with its current market cap of around $10 billion, an intriguing long-shot candidate.
SoundHound AI is posting meaningful revenue growth, though it isn’t yet profitable. The price-to-sales ratio offers a valid way to value it here—and at 20 times sales, SoundHound AI isn’t cheap. However, with revenue growth topping 67% in its most recent quarter, the risk-reward profile looks compelling.
Overall, SoundHound AI and IonQ appear well-positioned for strong gains through the remainder of 2026. While they may fall short of Wall Street’s loftiest expectations, if they continue executing in their respective industries, the long-term returns could ultimately prove even more impressive.
