INUV - The 3 Most Undervalued AI Penny Stocks to Buy in May 2024

2024-05-08 10:36:03 ET

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Everyone’s current favorite antagonist, Federal Reserve Chair Jerome Powell, might be turning the tide with his latest comment on the economy. In a recent address, He stated, “I don’t see the ‘stag’ or the ‘flation’,” dispelling concerns about a 1970s-like stagflation. Hence, an economic recovery is well within sight, which bodes well for undervalued AI penny stocks .

AI stocks have been panned in recent weeks after taking the stock market to record highs last year. However, few, if any, can take away the AI industry’s disruptive long-term potential. As I’ve mentioned multiple times in my articles of late, we’re still in the early stages of what promises to be a long and illustrious era for AI.

The Magnificent Seven hogged the spotlight last year, overshadowing the impressive strides made by undervalued AI penny stocks. Here are three that impress the most but caution is advised considering the speculative nature of these investments.

Guardforce AI (GFAI)

Guardforce AI (NASDAQ: GFAI ) is an interesting AI penny stock, which leverages disruptive technology to deliver robust robotics-based security solutions. This unique focus on robotics-based security positions it ahead of its competition and as a frontrunner in the field.

Moreover, its recent quarterly performances show healthy single-digit revenue growth, while comfortably beating analyst estimates. Additionally, its free cash flow balance stands at an impressive $11 million as of last year, 148% higher than the prior-year period.

Furthermore, the firm is moving forward with strategic partnerships and acquisitions to further strengthen its positioning. It recently bought out robot-related business assets from Shenzhen Kewei Robot Technology which could significantly enhance GFAI’s Robot-as-a-Service (RaaS) sales and capabilities. Also, its collaboration with Concorde Security in Singapore is another feather in its proverbial cap. Concorde expects GFAI’s robotic security solutions to effectively manage visitors while performing routine tasks such as janitorial duties.  Despite the positives GFAI stock hasn’t struck a chord with investors yet, but offers superb long-term potential.

Inuvo (INUV)

Why spend 30 cents on a gumball when you could pick up Inuvo (NYSEAMERICAN: INUV ) stock and chew on even bigger returns?

It wasn’t like that for communication services firm Inuvo, though. It traded 99.5% lower than its all-time high price of $60.80. INUV stock has fallen out of favor with investors for a while, having shed more than 50% of its value in the past decade.

However, it ranks among the few firms revitalizing themselves last year through AI-driven initiatives. Inuvo made the rounds last year due to its powerful AI-based consumer intent recognition platform in IntentKey.

The platform essentially mimics the human brain in associating ideas, emotions, objects, among other things for brands to effectively target the right audience. Moreover, the advertising market is back, adding to the stock’s attractiveness.  Recent results have shown a healthy uptick in sales growth, while its stock price is up 75% in the past six months.

Predictive Oncology (POAI)

Predictive Oncology (NASDAQ: POAI ) is another moonshot AI penny stock play in the pharmaceutical space. It’s a company that uses the power of AI to significantly improve outcomes in the drug discovery process. Without getting into the boring specifics, the bottom line is that the firm helps develop incredibly effective medical treatments more efficiently and accurately. Consequently, treatments can become more personalized and effective for a diverse population.

A bet on the company is a bet on the robust growth expected in the AI-led drug discovery market. According to a MarketsandMarkets report, the sector is projected to grow from $0.9 billion in 2023 to $4.9 billion by 2028 , at a 40.2% CAGR over a five-year period.

Hence, there is a growing trend in the pharma sphere to employ AI in the research and development process, positioning POAI stock for healthy long-term gains.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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