In this article, we’ll take a look at the 10 best AI penny stocks to buy right now. Go straight to see more companies like this 5 best AI penny stocks to buy now,
The AI hype and news cycle is showing no signs of abating as companies keep announcing new AI-related products and services and users continue to deploy AI-related applications to increase their productivity at jobs and in life. However, some analysts believe that the AI ”bubble” that drove many stocks to record highs that began with the launch of ChatGPT may be close to bursting. For example, Morgan Stanley strategist Edward Stanley recently said in a note that if Nvidia was a proxy for the AI bubble it was nearing its peak. Nvidia began to bounce back earlier this year after the company gave strong guidance on the expectation that generic AI applications will drive demand for its chips. However, the analyst noted that unlike Nvidia, gains in broader AI-related indices have been modest. For example, the MSCI USA IMI Robotics and AI Select Net USD Index was up nearly 50% as of July 31. But Nvidia’s latest quarterly report proved Stanley’s skeptics wrong. However, in the longer term, Nvidia shares could lose their gains as some analysts believe the stock’s valuation has become too high.
The era of AI deployment has begun
Bubble or not, the rise of AI will create endless opportunities for the general public and industry. According to a Stanford University report, AI has entered an era of “deployment” where large language models are released by companies and people are using AI applications directly. The report states that this revolution will create a lot of risks and opportunities. For example, the report considers the problem of AI-based deepfake videos as one of the biggest risks in the modern world.
However, the report also highlights how AI creates new job opportunities in the industry. The report states that the number of job postings related to AI is set to increase from an average of 1.7% in 2021 to 1.9% in 2022. Although the report does not mention any data for 2023, the number of jobs in the AI domain is set to skyrocket. 2023 and beyond as we are in the early stages of AI revolution and companies will need people for multiple AI related roles to take advantage of the various opportunities.
The Stanford report also cited data from labor market data company Lightcast, which analyzed millions of job postings since 2010 to find trends in AI-related job openings. The report states that machine learning is one of the most sought-after skills in the AI segment, followed by a general category called “artificial intelligence”. Neural networks, natural language processing, robotics, visual image recognition and autonomous driving technologies are some of the other top skills that are in demand in the US across the AI spectrum.
The report also talked about investment in the AI sector. Interestingly, the report states that the total global corporate AI investment in 2022 was $189.6 billion, almost a third less than in 2021. However, the report states that there has been an increase in investment related to AI
Goldman Sachs published an interesting report in July titled “Generative AI: Hype or Truly Transformative? And addressed the question of opportunities in AI and valuation. There was an interesting section in the report which stated:
“GS US Internet analyst Eric Sheridan, for his part, is somewhat reassured by the fact that most companies that have recently outperformed the AI theme are still trading at relatively reasonable multiples of GAAP EPS. And Rangan makes the case that unlike other big technology cycles – such as the shift from distributed systems to cloud computing – where objections from established players slowed adoption, the world’s most powerful technology companies are driving this change, so AI probably isn’t in a hype cycle. So where are the most compelling AI investment opportunities today? Rangan and Sheridan argue that the big tech companies developing basic AI models, as well as the “picks and shovels” businesses serving the space—semiconductor companies, cloud computing hyperscalers, and infrastructure companies—are poised to gain during the current Are in good condition. construction phase. Guo agrees, but also sees a lot of opportunities, and is most excited about the application layer, about which a broad investor base seems less confident today.”
Best AI penny stocks to buy now
Image by alexandra_koch from Pixabay
For this article, we scoured Insider Monkey’s database of 943 hedge funds and picked the 10 AI penny stocks with the most hedge fund investors at the end of the first quarter.
Best AI penny stocks to buy now
10. iCAD, Inc. (NASDAQ:ICAD,
Number of hedge fund holders: 7
iCAD, Inc. (NASDAQ:ICAD) is a medical device manufacturer whose products are used for the early detection of breast, prostate, and colorectal cancers. iCAD, Inc. (NASDAQ:ICAD) is using AI in its products. For example, iCAD’s ProFound AI® solution is used in cancer detection systems.
By the end of the first quarter of 2023, 7 hedge funds in Insider Monkey’s database of 943 funds have acquired iCAD, Inc. (NASDAQ:ICAD) reported having a stake. During this period iCAD, Inc. (NASDAQ:ICAD)’s largest stakeholder was George McCabe’s Portolan Capital Management, which holds a $1.1 million stake in the company.
9, Rekor Systems Inc (NASDAQ:REKR)
Number of hedge fund holders:8
Rekor Systems, Inc. (REKR) is a unique company that provides infrastructure solutions for the transportation management, public safety and urban mobility markets. The company is using AI for public safety. It recently came into limelight when its AI system and software played a key role in the arrest of a drug smuggler.
9. Canaan Inc. (NASDAQ:can do,
Number of hedge fund holders: 8
Canaan Inc. (NASDAQ:CAN) is a Chinese hardware company best known for the chips used in blockchain and crypto mining servers. Canaan Inc. (NASDAQ:CAN) products are also used in AI systems. For example, its Kendryte K510 is a Linux-based RISC-V high-precision AI processor used for image and audio processing.
By the end of the first quarter of 2023, eight hedge funds tracked by Insider Monkey will own Canaan Inc. (NASDAQ:CAN) reported having a stake. Canaan Inc. (NASDAQ:CAN)’s most significant stakeholder was Ryan Caldwell’s Chiron Investment Management, which holds a $2.9 million stake in the company.
7. Himax Technologies, Inc. (NASDAQ:HIMX,
Number of hedge fund holders: 9
Semiconductor company Himax Technologies, Inc. (NASDAQ:HIMX) is behind a number of AI-related products. For example, Himax Technologies, Inc. (NASDAQ:HIMX) builds WE1 Plus, an AI accelerator-embedded ASIC platform for ultralow power applications. Himax Technologies, Inc. (NASDAQ:HIMX) shares are up nearly 6% as of August 7.
By the end of the first quarter of 2023, nine hedge funds in Insider Monkey’s database of 943 hedge funds have acquired Himax Technologies, Inc. (NASDAQ:HIMX) reported having a stake. During this period Himax Technologies, Inc. (NASDAQ:HIMX)’s largest stakeholder was Steve Cohen’s Point72 Asset Management, which holds an $11.42 million stake in the company.
In its Q1 earnings call, Himax Technologies, Inc. (NASDAQ:HIMX) management talked about its AI product WiseEye:
“For an update on our next-generation WE2 AI processor, which builds on its industry-leading WE1 processor and performs Contextual Awareness AI, in particular detecting user engagement levels based on more subtle presence or movement Is. WE2 is designed with advanced computer vision engine that can recognize long range images at greater accuracy, speed, power efficiency and estimate performance. Based on its superb AI processing capabilities, WE2 can enable more comprehensive and detailed types of object detection, such as facial landmarks, hand landmarks and body skeletons, to understand complex human body movement, which greatly enhances applications and usage. Enables high-precision AI detection for a wide range. Cases in real life. We’ve gained significant traction for the next generation of smart notebooks, which we aim to hit the market by 2024, where we’re making solid design progress with leading top brands – including leading laptop brands as well as CPU and AP SoC partners combined formally working on the promotion of the new. AI features on notebooks.
The expansion of business activities is also on the rise with IoT players specializing in different domains to meet various demands that were previously unknown to us. We are thrilled to be at the forefront of these innovative developments in the near future. Backed by rapidly growing customer adoption from diverse domains, we are committed to the growth of the WiseEye product line, leveraging a broad ecosystem of partners to capture the vast end-point AI opportunity.
6. Perfect Corporation (NYSE:perf,
Number of hedge fund holders: 10
Perfect Corp (NYSE:PERF) uses AI and augmented reality (AR) in the online beauty and fashion business sector.
As of the end of the first quarter, 10 hedge funds in Insider Monkey’s fund database reported holding stakes in Perfect Corp (NYSE:PERF).
During the second quarter, Perfect Corp (NYSE:PERF) revenue rose nearly 12% year over year to $12.7 million, $0.27 million below estimates. Gross profit for the period was $10.2 million, compared to $9.7 million in the same period last year.
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Disclosure: None. 10 best AI penny stocks to buy now Originally published on Insider Monkey.