As technology continues to evolve rapidly, artificial intelligence (AI) stands out as one of the most transformative innovations of our time. With its ability to revolutionize industries across the board, AI has also caught the attention of investors seeking to capitalize on its growth. In this blog, we’ll explore the realm of AI penny stocks, uncovering opportunities for investing in 2024.
Understanding Penny Stocks
Before delving into the world of AI penny stocks, grasping the concept of them is crucial. Penny stocks are shares of small companies that trade at low prices, usually under $5 per share. Due to their affordability, penny stocks often attract investors looking for high-risk, high-reward opportunities.
Advantages and Disadvantages of AI Penny Stocks
Investing in AI penny stocks to buy comes with its own set of advantages and disadvantages. On the plus side, these stocks have the potential for significant gains, especially if the companies behind them experience rapid growth in the AI sector. Additionally, since they trade at low prices, investors can purchase more shares for a relatively small investment.
However, it’s essential to acknowledge the risks associated with AI penny stocks. These companies are often smaller and less established, making them susceptible to volatility and market fluctuations. Furthermore, the AI industry is still evolving, meaning investing in AI penny stocks can be speculative and unpredictable.
Tips for Investing
For those considering investing in AI penny stocks, it’s crucial to approach with caution and diligence. Here are some tips to keep in mind:
- Do Your Research: Before investing in any AI penny stock, thoroughly research the company, its technology, and its potential for growth in the AI market.
- Diversify Your Portfolio: Spread your investments across multiple AI penny stocks to mitigate risk and maximize potential returns.
- Set Realistic Expectations: Investing in penny stocks is inherently risky, and not all investments will yield positive results.
- Stay Informed: Keep abreast of industry trends, news, and developments that could impact the performance of AI penny stocks.
Top 8 AI Penny Stocks to Invest in 2024
Without further ado, let’s explore eight promising AI penny stocks list that warrant consideration in 2024:
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Big.Bear AI (BBAI):
BigBear.ai (NYSE: BBAI) is a data analytics company that uses AI and machine learning and has substantial growth potential. BBAI made several strategic announcements in 2023, including the acquisition of Pangiam. The acquisition supports BBAI’s objective of building a comprehensive portfolio of Vision AI products.
In terms of finances, BBAI recorded a net loss of $21.3 million in Q4 2023, but it also recorded $3.7 million in adjusted EBITDA, its second consecutive quarter of positive results. Revenue climbed somewhat from $40.4 million in Q4 2022 to $40.6 million in Q4 2023.
With BBAI investors expecting revenue of between $195 million and $215 million in 2024, things are also looking up in the future.
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Guardforce AI (GFAI):
In the previous year, the company declared a basic and diluted loss per share of $4.35 and a net loss of $13.8 million. The company’s assets climbed from $61.2 million to $64.1 million, with cash and cash equivalents seeing a notable increase from $6.9 million to $24.7 million in current assets.
It had previously made some significant M&A maneuvers, even with its capital infusion. This includes purchasing Shenzhen Kewei Robot Technology’s robot-related company assets, which could help it stand out in the competition.
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Rec Silicon (RNWEF):
Rec Silicon (OTCMKTS: RNWEF) is a global manufacturer and distributor of silicon materials used in semiconductors and solar panels. The company sells silicon materials to companies that make chips and wafers for solar energy. Rec Silicon’s growth drivers and upside prospects excite me. 2024 analysts predict Rec Silicon’s revenue will expand by more than 150%. Sales are predicted to reach $351 million this year, a significant increase from $141 million in 2023. Furthermore, it is anticipated that income will reach $606 million by 2026 due to the surge in demand for solar energy.
Rec Silicon is changing its business mix in the interim. In 2024, the company plans to stop producing EG polysilicon and focus on improving Butte production instead. Rec Silicon’s most extensive product line is silane gas, so devoting resources to maximize silane output over an extended period appears reasonable.
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Aware (AWRE):
Artificial intelligence is used by Aware (NASDAQ: AWRE) to identify individuals; this technology has potential advantages for government and law enforcement organizations. Based on its most recent financial reports, Aware appears to be finding its footing.
Aware achieved a triple-digit revenue increase in Q3 2023. Revenues for the quarter increased 111% to $6.4 million over the same period last year. As is usual for a small-cap tech stock, profitability is still relatively low. The fact that Aware isn’t losing money, which is uncommon among SaaS firms, is what most impresses me. Recent contract victories support my belief that Aware is among the top AI penny stocks. The business obtained a $3.4 million contract with a maximum 5-year value of $5.1 million, including yearly maintenance options. This increases Aware’s influence within the US government.
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Expert.AI (EXSPF):
A hybrid artificial intelligence platform called Expert.AI (OTCMKTS: EXSPF) converts text into insights and information that can be used. The system offers social media, unstructured text sources, complicated documents, and a profound natural language understanding. Expert.ai produces high-quality, comprehensible outcomes by combining massive language models, knowledge representation, and machine learning.
Expert.AI capitalizes on the enormous demand for data analytics with features like intelligent document processing, domain-specific language modeling, and customized natural language solutions. Expert.AI, as an innovator in AI, is, in my opinion, well-positioned to secure significant enterprise contracts. The roughly twofold increase in EXSPF shares over the last year confirms my optimistic thesis. The 97% share increase indicates that the business is performing well and that the market recognizes its potential.
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Adcore (ADCOF):
With the global acceleration of digital transformation, search engine optimization is becoming increasingly crucial for companies looking to be seen online. For this reason, Adcore (OTCMKTS: ADCOF) is a well-known advertising technology provider that automates regular SEO work. It is among the best AI penny stocks in its industry.
These days, offline businesses also need to be online. Regarding search engine rankings and website traffic, SEO may make or destroy that presence. Adcore is a minor participant in this enormous market, yet it offers automated search marketing solutions. Adcore saw an 11.5 percent increase in revenue to $6.1 million in Q32023 but only $140,000 in net losses. With increased growth and profitability, this microcap stock has the potential to yield substantial gains. Adcore has a long way to go before making a full recovery.
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Investview (INVU):
Investview (OTCMKTS: INVU) is a fintech and financial education startup gaining traction by utilizing AI. The business supports independent investors in various marketplaces like cryptocurrency, forex, options, and stocks. Even though INVU has only traded between one and two cents for the previous two years, I think that with solid execution, it might rise much higher. It’s still early in the micro-cap stock’s life.
In Q3 2023, revenue increased by 28% yearly to $19.2 million. By substantially exceeding its current market cap of $38 million, Investview is expected to generate a total revenue of $65-75 million in 2023. Furthermore, the business has turned a profit for three consecutive quarters, which is uncommon for early-stage SaaS companies.
Investview finds a sweet spot in the industry by fusing AI-enhanced advising services with digital financial education. Its emphasis on self-directed investors offers a massive market potential that can be addressed entirely.
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Data Storage Corp:
Based on conventional valuation metrics, data storage can initially appear to be a bit costly. Yet, that premium is a good deal in light of the company’s current state and prospects. With plenty of possibility for development in the upcoming months, Data Storage is trading at a substantial discount to industry leaders.
With Q3 sales rising 35.5% year over year, we are already witnessing early indications of a hypergrowth tipping point. The company’s revenue unexpectedly exceeded Wall Street’s projections by about 20%! For the quarter, Data Storage’s CloudFirst division alone brought in $3.7 million, with net income over $800,000 and EBITDA surpassing $1.1 million. These are impressive numbers for a company that most investors haven’t heard of.
Can One Make Money with AI Penny Stocks?
While investing in AI penny stocks can potentially lead to substantial profits, it’s essential to approach them carefully and manage expectations. Success in the world of penny stocks often requires a combination of research, patience, and risk management. While some investors may indeed achieve significant gains, others may experience losses. Ultimately, the key is to make informed decisions and stay vigilant in monitoring your investments.
Bottom Line
The potential for growth in AI penny stocks remains promising as the AI industry continues to expand and evolve. However, investors need to conduct thorough research, manage risk effectively, and stay informed about industry developments.
By following these guidelines and exploring opportunities in penny stocks, investors can position themselves for potential success in 2024 and beyond.
