Investing in the Future: AI Stocks to Watch
In the ever-evolving landscape of the stock market, one sector stands out as a harbinger of long-term growth: the tech industry. Amid the myriad tech innovations, artificial intelligence (AI) has emerged as a transformative force, permeating various niches and promising radical changes. H.C. Wainwright analyst Scott Buck believes in the potential of AI, pinpointing two stocks with strong AI ties that could see their value surge by over 100% in the coming year, all with an entry cost below $5.
BigBear.ai Holdings (BBAI): Navigating the AI Revolution
BigBear.ai is a company at the forefront of AI and machine learning, leveraging these technologies to automate decision-making processes. With a focus on data-driven AI decision solutions, BigBear.ai caters to enterprise customers across diverse sectors, including government and defense, manufacturing, healthcare, and more. Their AI-driven solutions find applications in autonomous systems, cybersecurity, supply chains, and logistics, among others.
Although the company recently went public through a SPAC transaction, its stock has seen a decline from over $9 per share to under $2 since its NASDAQ debut in December 2021. Despite reporting Q2 2023 revenue slightly below expectations, BigBear.ai’s impressive work backlog of $206 million caught the eye of Scott Buck. He believes that the company’s AI-powered solutions, catering to supply chains, cybersecurity, and autonomous systems, position it as a leader in the AI-driven data analytics field. This optimism is reflected in Buck’s Buy rating and a $4 price target, suggesting a potential gain of around 133% within a year.
AudioEye, Inc. (AEYE): Pioneering Digital Accessibility
AudioEye is a software company that offers a top-rated digital accessibility platform, addressing compliance with the Americans with Disabilities Act (ADA) and WCAG standards. Their platform encompasses a range of accessibility tools, making websites more user-friendly for individuals with disabilities. With its AI-powered system, AudioEye provides active monitoring, automated fixes, and detailed reports to ensure legal protection for website owners. Notably, a survey revealed that users employing AudioEye’s platform were 67% less likely to face valid lawsuits related to accessibility.
While AudioEye’s recent financial report met expectations, its strong work pipeline and positioning to capitalize on new accessibility regulations from the Department of Justice make it an attractive prospect. Buck foresees significant revenue acceleration beginning in 4Q23, supported by a combination of new products and an enhanced sales effort. He rates AudioEye as a Buy with a $10 price target, suggesting a potential upside of approximately 115% in the coming year.
In summary, these AI-focused stocks, despite their under-the-radar status, have the potential to deliver substantial gains. While the tech sector continues to evolve, these companies are poised to thrive in the AI revolution.
