10 Best AI Penny Stocks to Buy Now

10 Best AI Penny Stocks to Buy Now

Explore top AI penny stocks for potential investment in the dynamic field of artificial intelligence

In the ever-evolving landscape of artificial intelligence (AI), investors are actively seeking penny stocks that offer the promise of substantial returns. Investors navigating the dynamic AI investment landscape are confronted with a multitude of opportunities and challenges. To assist them, this article takes a deep dive into the top 10 AI penny stocks currently dominating the market, providing insights into companies utilizing AI to drive innovation and fuel growth.

 1. Nerdy, Inc. (NYSE: NRDY)

Number of Hedge Fund Holders: 22

Leading our list is Nerdy, Inc., an online learning platform that boasts an impressive 22 hedge fund holders. Utilizing AI to facilitate connections between students and tutors, Nerdy reported its Q1 results in May. The financials included an adjusted income of $0.5 million and a notable 5% year-over-year (YoY) revenue growth, totaling $49.2 million.

2. GeneDx Holdings Corp. (NASDAQ: WGS)

Number of Hedge Fund Holders: 16

GeneDx Holdings, a genomics company at the nexus of data analytics and AI, specializes in medical diagnostics and genome testing. Despite a Q1 GAAP EPS miss, the company achieved impressive revenue of $43.14 million.

3. FiscalNote Holdings, Inc. (NYSE:NOTE)

Number of Hedge Fund Holders: 15

Securing the third spot on our list is FiscalNote Holdings, employing AI across its software systems and solutions. The company recently unveiled the FiscalNote Risk Connector in June, designed to aid companies in mitigating risks within their supply chains.

4. Pagaya Technologies Ltd. (NASDAQ: PGY)

Number of Hedge Fund Holders: 13

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.

5. SoundHound AI, Inc. (NASDAQ: SOUN)

Approximate YTD Gain: 50%

Specializing in speech recognition, 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.

6. Perfect Corp. (NYSE: PERF)

Number of Hedge Fund Holders: 10

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.

7. Himax Technologies, Inc. (NASDAQ: HIMX)

YTD Gain: Approximately 6%

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.

8. Canaan Inc. (NASDAQ: CAN)

Number of Hedge Fund Holders: 8

Canaan Inc., a Chinese hardware company recognized for its chips in blockchain and crypto mining servers, integrates AI into products like the Kendryte K510 AI processor. Chiron Investment Management holds a substantial stake of $2.9 million.

9. Rekor Systems Inc (NASDAQ:REKR)

Number of Hedge Fund Holders: 8

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.

10. iCAD, Inc. (NASDAQ: ICAD)

Number of Hedge Fund Holders: 7

iCAD, Inc., a 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.

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