The world of artificial intelligence (AI) is rapidly evolving, and its impact on the stock market today is increasingly significant. Whether you’re trading penny stocks or higher-priced stocks, the wave of momentum is unavoidable to notice right now. Two companies at the forefront of this trend in lately have been Nvidia (NASDAQ: NVDA) and C3AI (NYSE: AI). They have made significant strides in AI technology, positioning themselves as key drivers when it comes to AI stocks.
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Nvidia has been riding the AI wave, recently touching a $1 trillion market cap, a first for any chipmaker. This achievement places Nvidia in the elite club of tech giants such as Microsoft, Alphabet, Amazon, and Apple, which have surpassed the $1 trillion market cap level.
Nvidia’s stock has seen a stunning rally, with a rise of over 165% since the start of 2023. This surge is largely attributed to the company’s central role in the AI craze.
Recently, Nvidia unveiled a range of new AI-centric products, including a high-powered supercomputer and a platform designed to harness generative AI in video game development. Its graphics cards are popular for demanding workloads that applications like large language models require, and the company has launched new inference platforms specifically designed for generative AI.
Nvidia’s AI prowess also extends to the realm of self-driving cars. It develops platforms, including hardware and software, that power driver-assistance features and fully autonomous driving.
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On the other hand, C3AI, a software-as-a-service (SaaS) company, provides enterprise-scale AI applications. Its tools help its customers accelerate software development, reduce cost and risk, and have a wide variety of applications.
For instance, the U.S. Air Force uses C3 AI Readiness to predict aircraft system failures, identify spare parts, and find new ways to increase mission capability. The company is also launching its own generative AI suite with enterprise search as the first product.
The AI market is already large and still growing quickly, with total spending on AI systems forecasted to reach $97.9 billion in 2023, up from $37.5 billion in 2019. With Nvidia and C3AI leading the charge, the future of AI stocks looks promising. As AI continues to evolve and permeate various sectors, these companies are poised to reap significant benefits, making them attractive prospects for investors interested in AI stocks.
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In this article, we take a look at some of the smaller AI penny stocks to watch. We’ll discuss some recent updates and potential catalysts to keep track of. Then you can decide if they’re worth adding to your list of penny stocks or not as the AI trend continues this week.
Penny Stocks To Watch
Attento (NYSE: ATTO)
Other AI stocks are beginning to emerge as the vast majority of the most popular names appear overextended in many cases. AI stock alone has climbed significantly higher in a short period. This is where we’ve seen companies like Attento come to light. The last week of trading action has shown a significant uptick in activity amid the AI boom.
On the surface, Attento is business process and customer relationship management company in Latin America. Digging a little deeper will show the AI connection. According to its website, “We use artificial intelligence tools to analyze sentiments and provide more humanized consumer interactions. We custom-build the journey mapping and journey planning to design the best relationship strategy for each customer profile, including development of personas. Further resources include intelligent IVR, intelligent and virtual assistants, chatbots and voxbots, document management automation and orchestration, OCR/ICR, NLP/NLU, and front- and back-office RPA.”
Although there haven’t been any new updates from the company in quite some time, sympathy sentiment may be playing a more critical role this month.
Kingsoft Cloud Holdings (KC)
Shares of tech stocks are hot at the start of the shortened holiday week. It isn’t solely from companies developing artificial intelligence tools or platforms either. Everything from crypto to cloud computing is gaining attention. Kingsoft Cloud falls into the latter segment. The company is a cloud services provider in China and recently caught a boost in trading action thanks to attention on tech stocks.
The recently missed earnings estimates but remains optimistic on its prospects. Henry He , Chief Financial Officer of Kingsoft Cloud, added, “We are pleased to see that our profitability further improved steadily in the first quarter with the adjusted gross margin increasing for a fourth consecutive quarter and rising by a significant 6.6 percentage points year-over-year to a historical high of 10.4%. To help capital market better understand our path to improve our profitability, this quarter we started to provide gross profit and margin for public cloud and enterprise cloud services separately…Looking ahead, we will continue to take various measures to cut down expenses and we believe we are well on track to quarterly adjusted EBITDA breakeven.”
Against this backdrop and the sympathy momentum from AI stocks, KC stock has surged in the stock market today.
SoundHound AI (SOUN)
SoundHound AI is also gaining interest, with AI stock sympathy momentum at the forefront. The company specializes in voice AI technology. It recently reported first-quarter earnings and posted 56% growth in year-over-year revenue. SoundHound also saw its gross margin climb from 51% to 71%, and adjusted EBITDA improved by 13% over the last year.
“The incredible surge in demand for conversational AI is giving SoundHound a unique advantage. As an established innovator with years of experience providing AI solutions to world-class brands, we’re fast becoming an obvious partner for businesses looking to harness emerging capabilities,” said CEO Keyvan Mohajer.
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Last week, SoundHoud received a notice of allowance for a US patent application titled “Buildings A Natural Language Understanding Application Using A Received Electtonioc Record Containing Programming Code.”
While SOUN stock hasn’t catapulted as aggressively as stocks like AI or NVDA, volume remains higher in the stock market today compared to previous sessions.
List Of AI Penny Stocks
- Attento (NYSE: ATTO)
- Kingsoft Cloud Holdings (NASDAQ: KC)
- SoundHound AI (NASDAQ: SOUN)
