3 AI Penny Stocks With the Potential to Make Your Financial Dreams Come True

As we forge ahead into the AI era, the top AI penny stocks have become increasingly relevant, emerging as a buzzword among savvy investors. Projected to inject a massive $15.7 trillion into the global economy by the conclusion of the current decade, AI is no longer just the playground for large-cap tech giants. Often, the minnows swimming beneath the surface pack the biggest punch. These high-potential AI penny stocks boast the capacity to morph into tomorrow’s market sharks.

While these fledgling AI stocks may not currently be making waves on the revenue front, their potential lies in their ability to carve out a first-mover advantage. So, if you’re pursuing significant gains, it might be an opportune time to consider the best AI penny stocks to buy. That said, let’s dive into this exciting arena of tech investments.

SoundHound AI (SOUN)

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Built upon its unique proprietary technology, SoundHound AI (NASDAQ:SOUN) straddles multiple sectors, from automotive and the Internet of Things to television and customer service. As one might expect from a burgeoning firm in this space, its financials present an intriguing tableau, high growth rates tempered by significant losses. With its first-quarter sales touching $6.7 million and net losses at $26.37 million, the silver lining emerges as a mere 3% uptick in losses during the period.

SoundHound AI’s bull case becomes compelling with its burgeoning backlog, which saw a substantial 46% bump in the first quarter, nudging $336 million. This paradox points to robust demand for the firm’s offerings contrasted against its seeming inability to meet that demand. Should the firm successfully untangle this bottleneck, it could trigger a torrent of fresh income.

SoundHound’s impressive array of partnerships, from data centers to electric vehicles, deserves mention. With the firm raking in over $31 million in revenue in 2022, small-cap investors would find comfort in dismissing the negative earnings as a temporary phase.

Remark Holdings (MARK)

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Remark Holdings (NASDAQ:MARK) is an emerging developer and provider of AI solutions positioned remarkably well to exploit the expanding AI landscape. With solutions stretching across facial recognition, retail analytics, and other applications, the company has strategically positioned itself across various key sectors, including retail, healthcare, and hospitality. These sectors will likely be among the biggest beneficiaries of AI technology, potentially giving Remark’s multifaceted approach an edge in the AI sphere.

However, not everything is smooth sailing as the firm’s revenue and earnings have taken a hit, shrinking year-on-year basis, despite the increasing adoption of AI. This slide is slightly worrisome in an era when AI capabilities are growing rapidly.

However, even though MARK stock carries an element of risk, with the soaring demand for AI solutions, it could be a speculative yet potentially lucrative long-term bet. Investors seeking to ride the AI wave may consider taking a modest position in Remark and gradually building it over time.

Lantern Pharma (LTRN)

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Lantern Pharma (NASDAQ:LTRN) has established its position as a biotech juggernaut, harnessing the power of AI to revolutionize therapeutic development. The demanding, cost-intensive, and often ineffective pursuit of novel pharmaceuticals is notorious within the sector, especially during the drug discovery phase. Lantern, however, is lighting the way with AI applications, promising to trim timelines and cut costs.

AI algorithms at Lantern are fine-tuned for specific purposes, resulting in more efficient drug discovery than conventional human efforts. One such AI application is calibrated to predict a compound’s blood-brain-barrier permeability, a key factor in assessing the effectiveness of brain cancer drugs. Moreover, its LP-300 compound is currently in Phase 2 trials for patients with relapsed non-small cell lung cancer (NSCLC) for non-smokers.

Moreover, Lantern’s platform can scrutinize billions of data points to identify beneficial compounds for cancer patients. Also, its AI platform, RADR, produced LP-184 for solid tumors, receiving FDA clearance for Phase 1 trials. The cancer indications could unlock an annual market potential of more than $11 to $13 billion, highlighting its long-term effectiveness.

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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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