I just invested over $136,000 in 10 AI penny stocks my challenge to you invest $1,000 in each and at least one of them will 10x your money or more we can't yet know the effect of AI on the economy though estimates are as high as 15. 7 trillion globally through increased productivity and consumer demand that is nearly a 15% boost to the US economy alone with Services sector just starting to see that software transformation in the way we live the problem is with artificial intelligence still in its infancy with so many companies developing software that could change our lives we can't possibly know who wins this race but find that one or two stocks that end up dominating Ai and it may be all you need for example who would have thought that online book seller Amazon in 2001 would go on to dominate e-commerce shares fell to a split adjusted 35 cents each in October of that year and a market cap of just 3. 6 billion as the market wrote it off as a fail.
com darling but had you invested $1,000 in that one stock at that time you'd now have over half a million dollar so I researched for my top 10 AI penny stocks the best small companies competing in that theme with with not just 10x potential but the upside to 30 and 40 times your investment I'll highlight each how much I invested and the strategy that we're using to put all this together first up I've highlighted $400 million big bear. Holdings tier bbai in the past and the stock recently jumped 31% on its earnings so clearly they're doing something right Big Bear is in one of my favorite themes within AI helping companies make sense of that overload in data they help companies organize and visualize their raw data to turn it into those actionable insights this is key and really the first step in AI just managing all that data collected and then being able to make sense of it that's helped Big Bear grow its customer base and a $26 million backlog for Revenue it's also produced some major wins recently including exclusivity with L3 Harris and a $32 million award across three contracts with the US Army a relationship that has grown 235% in the last 3 years now expectations for growth have come down to just 10% this year and 14% next the company is still operating at a loss but at just 2. 3 times priced to this year's Revenue it's definitely one you want on your watch list I'll share analyst targets for each of these stocks but as very small companies many are only thinly covered at best we see only two analysts with price Targets on bbai but that could be an advantage for investors meaning these are largely undiscovered stock that could mean more potential upside but you're going to need to do more analysis as well to find what the market isn't watching still we do see a strong vote of confidence here from the analyst with a price targets of $3 per share or nearly double where the stock is at now this is one of my smaller positions at just over 600 shares and $1,000 invested but as a penny stock lots of potential here in O data ticker inod is one that we haven't covered here on the channel but saw its shares double on its first quarter earnings earlier this year the company is a PIX and shovels Penny Stock and the generative AI theme with Data Solutions that feed into those AI models from data duration transformation and Consulting the company enables generative AI to work for its customers revenue is expected up 59% this year and 29% next to 177 million and unlike a lot of these penny stocks inad data is already generating positive earnings what's surprising is that even after that big move this year it's not expensive at just 5.
6 times its ful year expected Revenue this is another stock not heavily covered with only two analysts here but with one forecasting 56% upside and the other with a target of $38 per share still though I want to do more research here before I go further into this one keeping in it at a $1,000 investment for now and adding more regularly I invested in each of these AI penny stocks on this list but if you want to see all the stocks I'm buying you can now by joining me on the blossom social investing app the app was created by investors for investors and I just started using it last year love the app for getting ideas and sharing my portfolio now this isn't just another social app though you can connect your brokerage accounts or just input your stocks to track all your stocks in one place you'll also be able to join more than 150,000 investors in the social feed to see what everyone else is talking about I've shared my portfolio on the app and it's totally free to download so look for your special invite Link in the description below AIP path ticker Pat is another AI stock I've been buying for a while and it's robotics theme that's not the physical robots you might think about but robotic processes through its software applications this kind of business automation is going to be key for a lot of companies and uipath is a leader in that machine learning and applications making it possible management is estimating market growth to $30 billion over the next few years which would be 15% annualized growth and even a fraction of that would mean Decades of higher sales from the company's 810 million booked over the last year these larger companies are always heavily covered by analysts because the banks want the company's Investment Banking business so they send their analysts to get to know management and talk up their IB we have 19 analysts covering the stock here with a low Target of $12 which is slightly lower than the current price though the average Target above $15 is still 20% return and the company is the largest on our list at $7. 2 billion making it a small cap stock rather than a true penny stock which I'm going to explain next it is one of my largest Holdings though at $51,000 and already up 7% on a stock that has a lot further to grow that $7. 2 billion uip path brings up a point here that about half of the stocks on this list aren't technically penny stocks but maybe not for the reason you think I always get lots of comments in Penny Stock videos like how can I be recommending a $19 share stock like like in Oda as a penny stock understand though stock prices really have nothing to do with this that's because when we talk about penny stocks we're talking about those small startup like companies with the potential to dominate their Market when I say small we're usually talking about companies under a billion dollars market cap small enough to see those 10 and even 100 times returns as they become those Mega cap companies that is why $19 per share in a data is a penny stock at a total company value of just $551 million I'm also including some stocks with market caps over a billion like uipath because even at $7 billion the company has still has enormous growth potential ahead of it Nvidia is a $3.
1 trillion company 432 times the size of uipath and while I'm not saying that ticker Pat will ever be as big as Nvidia it is still a strong growth stock all you out there in the nation know I come from that venture capital world where investing in startups is the name of the game and it's a perfect analogy for how you should be thinking about investing in the future of artificial intelligence because there is so much uncertainty around which companies will dominate their niche in AI but also so much potential just like in Venture cap you're likely going to see some spectacular failures along with some amazing returns This research I've shared before from Marquette on returns for Angel and Venture Capital investors shows it all it is very likely that many of the AI Darlings in the market today aren't going to capture their Market someone else will develop that killer app and some stocks will plunge like the 50 plus% of venture Investments that produce less than one ex return but that is okay that's the name of the game because your money is coming from the one or the two stocks out of 10 that that become the next Amazon the stocks that generate 20 30 or more times your investment that's how your overall portfolio produces this 27% annualized return a 10x return over 10 years but for all this to happen you have to think like a venture Capital investor you have to be ready to give these stocks the time to prove that potential as a venture cap analyst and now as an investor in several startups myself I know it's going to be 3 to 5 years and maybe even as long as 7 years before I see any exit in these Investments that's the kind of patience that you need in AI stocks right now if you've been following the channel by now you're probably tired of hearing me talk about SoundHound AI ticker s soou SoundHound at $1. 8 billion market cap is my largest AI holding and a leader in conversational AI to businesses can be used to build AI assistant in more than 25 languages of course the market for AI assistants could be ginormous even larger than the $60 billion Enterprise Market SoundHound estimates the company got a vote of confidence in February when it was reported that Nvidia had invested $ 3. 7 million into SoundHound and was providing Hardware to the company the shares popped another 50% on a single day in July when it was reported the company's Voice Assistant be used in Alpha Romeo and citrone vehicles across Europe SoundHound is the clear leader in what could be one of the biggest areas of AI those Voice assistance and it's showing that through the kind of growth we want to see in a penny stock expectations are for 80% Revenue growth this year and next to $152 million we only see five analysts covering the stock so far but with unanimous consensus to a higher price with even the low Target of $6 a share at 20% return from here and an average Target that would be 45% higher soundown is my largest AI position with $65,000 here in my main account though I have covered the position with so in some call options to reduce my short-term risk I've also got 4,000 shares or about another $20,000 investment that are uncovered in two retirement accounts I've held care cloud Inc ticker CLD longer than most of these and frankly it's been the most disappointing so far care cloud is a new entrant in healthcare Information Technology with a full Suite of cloud-based Solutions including records practice management patient experience and modering as well as its ability to design customized solutions for its providers the healthcare Information Technology space is expected to grow at a 1 % annualized pace through 2030 according to datum insights and and carecloud has booked 34% annual revenue growth since 2017 even better the company has grown its recurring Revenue fourfold last year to $8 million that is repeatable revenue all while cutting its customer Acquisitions costs in half I am down 17% on my position of 800 shares of car Cloud but remember we're talking about this long-term holding strategy giving these stocks the time to prove which will dominate AI the potential for growth is there in healthcare services and applying AI could alleviate some of the biggest Staffing and cost problems in the industry both analysts covering care cloud have a $5 Target on their shares and 81% upside from here and with that long-term potential much higher guard Force AI ticker gfai is the smallest company on the list at just $15 million and I generally don't cover stocks this small a lot of times these smallest of the small are just so thinly traded and with little public information that the risk here is just not worth the potential there are no analysts covering the stock so the research is going to be all on investors guard Force provides cash management and Security Solutions for companies mostly in Southeast Asia but also expanding to Western clients like FedEx and Starbucks the company is trying to integrate its AI into its advertising and iot solutions for its customers and Retail but growth is still unproven here I'd consider this more of a seed stage investment not necessarily pre-revenue but very risky so I'm holding at a ,000 investment on further research and growth we've still got four of my favorite AI penny stocks to watch including one about to revolutionize Healthcare But first you know I've got to send that special shout out to all you out there in the nation thank you for spending a part of your day to be here if you're not part of that Community yet just click that little red subscribe button it's free and you'll never miss an episode we've covered $2.
2 billion recursion Pharmaceuticals ticker rxrx recently for its groundbreaking approach to drug Discovery big farming companies like MC and Eli Lily are facing a patent Cliff mounting to nearly 200 billion in Lost revenues while also pulling back on the research they spend to find new drugs recursion though could revolutionize drug Discovery through its language model orchestrated workflow engine or low performing complex drug Discovery tasks using a natural language interface it's doing this by running experiments through a purpose-built AI models on massive data sets enabling it to screen and find the compounds that won't work basically to fail faster so it spends less time and money developing the drugs that won't work so through the use of AI recursion could dramatically lower cost for drug development and an advantage that would be worth tens of billions of dollars to Big Pharma companies the company has six programs and pipeline trials for seven indications four of which are in phase two and expecting results within the next two quarters Nvidia recently invested in the company with a $50 million Equity investment and is providing Priority Access to its hardware and resources recursion also has Partnerships with major healthcare companies like Bayer and J inch for research driving $58 million in sales this year six analysts have targets from $88 a share to as high as $16 which would double the current stock price and that long longer term upside if recursion can lower these drug Discovery costs is huge it is a smaller holding for me at 130 shares but one I will likely add to as the company makes progress in its process my vote for weirdest name is $2. 4 billion sprinkler ticker cxm an Enterprise Cloud software company offering a customer experience management platform the company's AI studio is gaining momentum racking up the data points to learn and become an industry leader for its customers growth isn't what you'd expect from a stock in this theme at just 6% Revenue growth expected this year and next but this one is also net income positive already as well as cash flow positive which takes a lot of the risk out compared to others on this list I was surprised to see 14 analysts covering a relatively small company here with the average Target of almost $12 a share that's a 28% upside this is an interesting one for that longer term growth here I've also got a smaller position at just 115 shares but could add more if that growth starts to accelerate Duo Technologies Group ticker duot is another very small company at just $18 million Market market cap and extremely thinly traded under 40,000 shares a day that does mean the bid and ask spread could be large so might be harder or more expensive to enter or exit a position understand this has to be a long-term investment if you're going to make it the company operates a railcar inspection portal with AI capabilities to inspect trains in motion generating high resolution images in real time to prevent derailments Duos has used the model across more than 40 use cases claiming a 95% reliability rate and to have already prevented derail this stock could get a bump from the railway safety act past last year and hopes to expand that inspection technology across other Transportation verticals in trucking and Airline this is another very thinly covered stock with only two analysts but both which targets more than double the current stock price I've got 385 shares for just under $1,000 invested in the stock and will add more if it can expand use of its model to other Transportation cases I've invested over $12,000 in this next stock but I'm not the only one buying these AI penny stocks I dug into SEC reports and discovered Nvidia the king of artificial intelligence is actually buying shares in five companies whether to get a piece of the profits or as a takeover move Nvidia knows Ai and knows these companies will be big so make sure you catch this video next and put these stocks on your radar c3.
