If you are seeking out the most undervalued AI penny stocks to invest in this April, you’ve landed on the right page. This piece will delve into a selection of small-cap companies engaged in cutting-edge artificial intelligence technologies that hold the potential for substantial growth as AI continues its rapid evolution.
Artificial intelligence has transitioned into the mainstream, with prominent language models like ChatGPT captivating the public’s interest. Concurrently, lesser-known companies are making notable advancements in the AI domain. These companies, with their modest valuations and market caps, stand poised to emerge as long-term success stories in the future.
Although investing in penny stocks carries inherent speculation and risk, it also presents the opportunity for significant returns if a company’s technology and products gain traction. Particularly in the realm of AI, even minor breakthroughs or strategic partnerships have the potential to propel the share prices of these thinly traded stocks.
Here are the most undervalued AI penny stocks worth considering this April. Ensure you don’t overlook these promising options.
BigBear.ai (BBAI)
BigBear.ai(NYSE:BBAI) employs machine learning and AI in data analytics, showcasing substantial growth prospects.
In 2023, BBAI made significant strategic strides, notably the successful acquisition of Pangiam. This acquisition aligns with BBAI’s objective of establishing a comprehensive Vision AI portfolio.
Financially, BBAI disclosed a net loss of \(21.3 million in Q4 2023 but also marked its second consecutive quarter of positive adjusted EBITDA at \)3.7 million. Q4 2023 revenue saw a slight uptick to \(40.6 million from \)40.4 million in Q4 2022.
Looking forward, the outlook appears promising for BBAI investors, with a revenue projection for 2024 ranging between \(195 million and \)215 million.
Considering the aforementioned factors, opting for BBAI stock to enrich your AI penny stock portfolio seems like a prudent choice. Moreover, trading at merely 1.52 times forward sales, it stands out as an undervalued prospect.
Bullfrog AI Holdings (BFRG)
Bullfrog AI Holdings (NASDAQ:BFRG) merges AI with psychiatric treatment, aiming to revolutionize mental healthcare through technology. Although pre-IPO, at approximately $3 per share, it presents itself as an undervalued AI contender for investors to mull over.
The company unveiled a $5.7 million public offering on February 1, intending to allocate the proceeds towards working capital and other general corporate purposes.
Its primary focus lies in leveraging AI for the analysis of gene expression data, including the identification of biological subtypes within disorders such as schizophrenia, bipolar disorder, and major depressive disorder. This approach offers fresh insights into personalized treatment strategies.
In a broader context, the healthcare and treatment landscape is transitioning from standardized solutions towards personalized treatments, aiming to mitigate complications and adverse effects. Estimates suggest that the personalized medicine market could reach a value of around $1 trillion by 2030, underscoring BFRG’s undervalued position when considering its total addressable market.
Guardforce AI (GFAI)
Guardforce AI (NASDAQ:GFAI) harnesses AI technology across diverse information and security solutions, providing consulting services.
The company reported a net loss of \(13.8 million last year, with a basic and diluted loss per share of \)4.35. Its assets surged to \(64.1 million from \)61.2 million, with current assets witnessing a notable increase in cash and cash equivalents from \(6.9 million to \)24.7 million.
Despite the recent cash influx, notable moves were previously made in the M&A domain. This includes the acquisition of robot-related business assets from Shenzhen Kewei Robot Technology, a move expected to confer a competitive advantage in the market.
GFAI’s announcement regarding the acquisition highlights the inclusion of “select equipment assets, client base in the sales pipeline and related sales channels and staff, as well as provide rights to the permanent use of its patents, thereby enhancing Guardforce AI’s new Robot-as-a-Service (RaaS) sales and capabilities.”
Furthermore, it appears undervalued, with Wall Street analysts predicting accounting profits within the next 12 months. Trading at approximately 1 times sales at the time of writing, it presents itself as a promising investment opportunity.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read More: Penny Stocks — How to Profit Without Getting Scammed On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew commenced his financial markets coverage during the crypto surge of 2017 and has been part of various fintech startups. Subsequently, he delved into coverage of Australian and U.S. equities for diverse publications. His work has been featured in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
