10 Most Popular AI Penny Stocks to Buy Under $5

7. Rekor Systems Inc. (NASDAQ:REKR)

Share Price as of March 24: $1.00

Number of Hedge Fund Holders: 5

Rekor Systems Inc. (NASDAQ:REKR) is a technology company that specializes in AI-driven infrastructure solutions for transportation, public safety, and urban mobility. It offers platforms like Rekor One and Rekor Scout for roadway intelligence and incident response. It uses AI for vehicle and license plate recognition.

The company’s AI-powered urban mobility platform, called Discover, is seeing rapid adoption. Florida has approved Discover for statewide deployments. New York has advanced it to procurement and granted access to 115,000 miles of roadways. New Mexico is investing $200 million in a project using the company’s AI. The company is engaged with over a dozen states and manages 1.2 million miles of roadways.

The company’s AI technology is positioned to transform 4.2 million miles of US roadways. Rekor Systems Inc. (NASDAQ:REKR) anticipates a potential 40% CAGR in revenue within the next five years, driven by its AI solutions. The company’s Q3 2024 revenue reached $10.5 million for the same reasons, which was a 16% increase. Recurring revenue was $5.5 million, which was up 14%.