3 Smart City Stocks That Will Mint Future Millionaires
Who would have thought that less than a century ago we used whale oil to light our homes. Today, the rise of smart cities is becoming more and more relevant in our daily lives. Technology continues to advance, and with it, more efficient and effective mechanisms have been created to manage our homes and cities. These three smart city stocks are attracting attention, have had an incredible growth and have a very good future perspective. It is worth considering adding them to our portfolios. Let’s take a look.
Xiao-I (AIXI)
Xiao-I Corporation (NASDAQ:AIXI) is one of the most prominent companies in China’s artificial intelligence landscape. The company is making waves with its revolutionary Hua Zang Universal Large Language Model Ecosystem. Recently unveiled at a flagship technology event, this ecosystem is not only cutting-edge technology, but will change the way businesses interact with their customers through AI-based virtual assistants and chatbots. The global attention it has garnered, with the presence of the Consul General of the United Arab Emirates, underscores its international importance.
Hui Yuan, CEO of the company, is excited about this achievement. The CEO believes it marks a new era in AI. Xiao-I is not just a technology leader, but a pioneer exploring new strategies to personalize and monetize large linguistic models. The Hua Zang ecosystem is more than just a fancy technology package. It is a comprehensive system tailored to the specific needs of businesses, with partnerships that have already achieved remarkable results in a variety of industries.
Beyond the tech buzzwords, its financial report for the first half of 2023 is music to investors’ ears. Record net income, up 106% year-on-year to $26.5 million, and a 523% increase in cloud platform product sales say it all. Gross profit was up 124% to $20.5 million. It also had a solid gross margin of 77.3%. These figures are not mere cold statistics, but reflect a company in high demand and booming financially.
Let’s look at the core of Xiao-I’s achievement, Hua Zang Large Language Model. This is not just another artificial intelligence tool. It is an operating system that enables industries to control, customize and deliver their products. Developed by a passionate team of 200 engineers, this model doesn’t just process data. It makes AI adaptive, low-cost and, most importantly, human-friendly.
EHang (EH)
EHang Holdings (NASDAQ:EH) is at the forefront of futuristic air travel. The company is led by its founder and CEO, Huazhi Hu. EHang is dedicated to bringing safe, autonomous and eco-friendly air mobility to the masses. What sets them apart is their unique approach to designing aircraft. This includes the compact EH216-S, designed for short- and medium-range flights in urban environments. Unlike traditional helicopters, EHang’s smaller aircraft eliminate the need for large ground infrastructure. This makes them a game changer for urban transportation.
Safety is a top priority for EHang. Its EH216-S has undergone rigorous testing to meet regulatory standards. The company’s commitment to design simplicity and autonomous flight positions them as an industry leader. This is ushering in a new era of urban air mobility (UAM). EHang’s commitment to intelligent command and control centers enhances the safety and efficiency of its autonomous flight fleet.
Its strategic efforts in Research and Development (R&D) have paid off. This is resulting in a significant patent portfolio and the world’s first type certificate for autonomous eVTOL products. Financially, the company has experienced remarkable growth. This includes significant revenue growth, strategic partnerships with government entities and substantial investments.
Recent milestones include the opening of EHang’s first European UAM Center in Spain, a pioneering initiative that integrates eVTOL aircraft with airport infrastructure. In addition, the EH216-S obtaining the Type Certificate from the Civil Aviation Administration of China (CAAC) is a landmark achievement in the aviation sector. This makes it the first unmanned eVTOL qualified for commercial passenger operations in China.
Cepton (CPTN)
Cepton Inc (NASDAQ:CPTN) is a leading Silicon Valley company known for its high-tech lidar solutions. The company specializes in the automotive and smart infrastructure sectors. On the financial front, Q3 2023 posted an impressive 112% year-over-year increase in total revenue to $3.8 million, with substantial growth in product revenue.
Despite a net loss of $11.3 million, the company’s innovative approach positions it as a key player in the evolving smart cities landscape.
Of particular note is the collaboration with The Indoor Lab at Tampa International Airport (TPA). Through this partnership, Cepton’s lidar technology is making waves. The goal of the collaboration is to improve airport operations through lidar-based AI analytics. This ensures compliance with privacy regulations. The innovative technology provides real-time 3D analytics for indoor and outdoor spaces. It also promises to improve operational efficiency and the overall passenger experience.
Beyond airports, Cepton’s lidar technology is making streets safer. In collaboration with the University of Texas Arlington (UTA) and the National Institute for Transportation and Communities (NITC), Cepton’s lidar system is deployed at busy intersections in Texas and Utah. Studies are focused on understanding pedestrian behavior and improving traffic signal operation.
Dr. Jun Pei, CEO of Cepton, underscores the company’s commitment to improving pedestrian safety and revolutionizing intersection design, showcasing the potential of lidar to transform the way we navigate our cities.
As of this writing, Gabriel Osorio-Mazzilli did not hold (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.
