Artificial Intelligence

Wall Street’s Secret Weapon? 10 Undervalued AI Penny Stocks Insiders Are Whispering About

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Forget flying cars and robot butlers (although, can we talk about robot butlers for a second? Folding laundry? Dream come true). Artificial intelligence (AI) is already here, quietly transforming our world from Alexa reminding you to buy milk to algorithms predicting your next Netflix binge.

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And guess who’s whispering about the next big thing in AI? Wall Street insiders. They’re not talking million-dollar stocks here – they’re eyeballing the penny stock market, where a tiny investment could mean a massive return.

So, ditch the boring brokerage advice and buckle up for a ride through the wild world of AI penny stocks. Here are 10 potential goldmines (or landmines, we won’t sugarcoat it) that could make you the envy of your friends (or the laughingstock, but hey, high risk, high reward, right?).

Nerdy, Inc. (NRDY): Think Tinder for brainiacs. This company connects students with tutors using, you guessed it, AI.  The scoop is that, Nerdy boasts an impressive 22 hedge fund holders. In May, they reported Q1 results with an adjusted income of $0.5 million and a notable 5% year-over-year (YoY) revenue growth, totaling $49.2 million.

Not bad for a company that basically helps you ace that stats exam.

GeneDx Holdings Corp. (WGS): Ever wondered what your DNA says about your risk of weird diseases or your ability to sing like Beyoncé? GeneDx uses AI to analyze your genes and tell you all about it. Just don’t blame them if you find out you’re genetically predisposed to karaoke addiction.

This investor eye candy is a genomics company at the nexus of data analytics and AI, that specializes in medical diagnostics and genome testing. Despite a Q1 GAAP EPS miss, the company achieved impressive revenue of $43.14 million.

FiscalNote Holdings (NOTE): Imagine a world where your company can avoid supply chain nightmares with the help of AI. That’s FiscalNote’s game. They use AI to sniff out potential risks before they happen, basically making them the fortune tellers of the business world (minus the crystal ball and the dramatic pronouncements). 

Hold on to your hats! FiscalNote Holdings recently unveiled the FiscalNote Risk Connector in June, designed to aid companies in mitigating risks within their supply chains.

Pagaya Technologies (PGY): This company uses AI to assess financial risk. So, next time you apply for a loan and it feels like they’re judging your shoe choices through the computer screen, there’s probably an AI algorithm behind it. But hey, if it gets you that new car, who are we to judge?

Pagaya Technologies, a FinTech company specializing in AI-driven risk assessment, has witnessed its stock surge by approximately 132% year-to-date (YTD) through August 7. Analysts, including B. Riley’s Hal Goetsch, have initiated coverage with a Buy rating, commending Pagaya’s credit risk calculation technology.

SoundHound AI (SOUN): Remember that app that could recognize any song you hummed into your phone? That’s SoundHound, and they’re using their AI smarts to power the future of voice recognition. Siri better watch out, because SoundHound might be coming for her crown (or should we say, her circuits?).

Listen up, SoundHound AI has experienced remarkable gains in 2023, attributing its success to the ongoing AI boom. In June, the company achieved inclusion in the Russell 2000 and Russell 3000 Indexes.

Perfect Corp. (PERF): We all know online shopping can be a gamble. Will those jeans actually fit, or will you look like you’re wearing a sausage casing? Perfect Corp. uses AI and augmented reality to give you a virtual try-on experience. So, you can strut your virtual stuff in those designer duds before you spend your hard-earned cash.

Perfect Corp., a standout in the online beauty and fashion business, integrates AI and Augmented Reality (AR). The company reported a noteworthy 12% YoY increase in Q2 revenue, reaching $12.7 million.

Himax Technologies, Inc. (HIMX): As a semiconductor company, Himax Technologies is at the forefront of AI-related product development, including the WE1 Plus AI accelerator-embedded ASIC platform. The company has garnered investments from 9 hedge funds.

Himax Technologies boasts an approximate 6% YTD gain. While it might not be the flashiest number on this list, steady growth is a good sign for any investor.

Canaan Inc. (CAN): This Chinese hardware company is recognized for its chips in blockchain and crypto mining servers, and integrates AI into products like the Kendryte K510 AI processor. 

Chiron Investment Management holds a substantial stake of $2.9 million in Canaan.

Rekor Systems Inc (REKR): Rekor Systems, Inc., a unique player in infrastructure solutions for transportation management, public safety, and urban mobility markets, has gained attention with its AI applications in public safety. The company made headlines when its AI systems played a key role in the arrest of a drug trafficker.

 In the real-world impact, Rekor Systems is a great example of AI being used to solve real-world problems and make our communities safer.

iCAD, Inc. (ICAD): This medical device manufacturer specializes in products used for the early detection of breast, prostate, and colorectal cancers. The company integrates AI into its offerings, with the ProFound AI solution playing a crucial role in cancer detection systems. 

This healthcare hero, iCAD, is a company that uses AI technology to make a positive impact on people’s lives.

Disclaimer: This is not financial advice (because seriously, we’re journalists, not financial wizards). Do your own research before you invest in any of these penny stocks. But hey, if you do strike it rich with AI, remember who put you on to these cool companies first (it’s us, by the way). Now go forth and conquer the world of AI penny stocks… responsibly.

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