10 Hot Software Stocks with High Upside Potential

3) Palladyne AI Corp. (NASDAQ:PDYN)

% Gain Over Past 6 Months: ~513.1%

Average Upside Potential: ~60.9%

Number of Hedge Fund Holders: N/A

Palladyne AI Corp. (NASDAQ:PDYN) is a software company that is focused on delivering software enhancing the utility and functionality of third-party stationary and mobile robotic systems. Alliance Global Partners initiated the coverage of the company’s stock with a “Buy” rating and a price target of $15. The company’s AI software is utilized to train mobile and static robotic systems to adapt to different circumstances.

Alliance Global Partners believes Palladyne AI Corp. (NASDAQ:PDYN)’s contract to provide AI-based training for Red Cat’s drones has been providing validation, with a strong pipeline expected to result in further adoption across different industries. The company announced that it has been awarded a new contract from the Air Force Research Laboratory (AFRL) to migrate the Palladyne™ Pilot AI software platform to next-generation, U.S.-made AI computing chipsets.  Palladyne AI Corp. (NASDAQ:PDYN) and Red Cat Holdings, Inc. announced the completion of the first successful flight in which multiple Teal drones equipped with Palladyne™ Pilot AI software autonomously collaborated to identify, prioritize, and track objects of interest on the ground.

Notably, the flight reflects how the Palladyne Pilot AI software uses sensor management and platform collaboration to allow a flight of 2 or more drones to autonomously collaborate and share multi-modal sensor information under constrained communication between the drones.