The 3 Most Undervalued AI Penny Stocks to Buy in February 2024
Technology stocks rarely come cheap, but smaller tech companies become more viable when an innovation like artificial intelligence breaks through. As the major players in Majestic 7 continue to rise in value, first-time investors need cheaper options. Enter the AI penny stocks, with reasonable pricing allowing investors’ money to go further with each share purchased. This has led to this list of AI penny stocks to buy.
Though low-priced AI stocks seem counterintuitive, the value of a solid penny stock comes from the potential of its products. Moreover, the current valuation for the global AI market lies at 136.6 billion, with 38% growth in 2023. Such predictions mean the time is now to get in and capitalize on a budding market.
With the ever-expanding nature of the tech industry, endless new avenues for AI integration pop up every day. For investors looking for alternatives in artificial intelligence, these are three AI penny stocks to buy in 2024.
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AudioEye (AEYE)
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AudioEye’s (NASDAQ:AEYE) digital accessibility solutions have put it in a prime position to profit in 2024. It focuses on using AI to perform automated testing for web accessibility, offering businesses a full suite of improvement methods. AEYE then runs human experts through the results of the AI improvements to confirm the benefit to customers.
These types of services are critical to corporations looking to maintain digital compliance with disability guidelines. Recently, AEYE hired an industry veteran to the position of Chief Accessibility Officer to continuously balance automation with human needs. Further achievements for this AI-powered company include a record-high Q3 revenue and accessibility awards that have strengthened AEYE’s reputation.
Taking these positives into consideration, analysts have rated AEYE a moderate buy so far. For investors looking for an entry-level AI stock, AEYE offers one of the best AI penny stocks to buy this year.
SoundHound AI (SOUN)
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With the increasing presence of AI in user applications, SoundHound AI’s (NASDAQ:SOUN) expertise in voice recognition continues to provide the company stability. This reputable service has led to SoundHound becoming the voice recognition software of top brands.
Alongside this robust portfolio, SOUN’s investment in AI voice recognition has broadened its customer base to restaurants. SOUN’s latest offering to customers is an AI assistant that can interpret natural human speech to take orders. Though this technology likely cuts into service industry jobs, it saves restaurants both time and personnel costs.
With expanding services and top-of-the-line technology, SoundHound looks to continue the positive trend in 2024. Furthermore, SOUN’s custom AI models fill a gap in the market. Most AI models today rely on databases and user interactions for their training. SOUN’s approach, however, almost exclusively improves the AI with every human interaction. This allows SOUN to maintain a strong buy rating.
Lantronix (LTRX)
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Among the best AI penny stocks to buy this year, Lantronix’s (NASDAQ:LTRX) scale makes it a key player in database management. Lantronix provides global services to a variety of industries from hospitality to manufacturing. Its specialty lies in information technology integration for automating systems across buildings.
LTRX further sweetens the deal for its customers by using AI to map out inefficiencies in the systems they support. This not only makes Lantronix popular with its current customers, but it also presents a serious value proposition to investors. As a company with a product as broadly applicable as efficient automation, Lantronix contains serious growth potential.
With already global reach and limitless industries to integrate into, Lantronix’s applications with AI will only grow its value more. Pair this growth with award-winning performance, and you get a stock with a reasonable price and strong buy rating.
On the date of publication, Viktor Zarev 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.
Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.
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