1. Augmedix, Inc. (NADAQ:AUGX)
Number of Hedge Fund Investors: 27
One of the most popular AI penny stocks under $1 is Augmedix, Inc. (NADAQ:AUGX), a San-Francisco-based healthcare technology company that provides medical documentation products and live clinical support services to the top healthcare systems in the United States using ambient AI technology.
The Augmedix Go smartphone app, which supports more than 50 medical specialties, and uses ambient AI technology to understand natural conversations between physicians and patients and produces thorough draft medical notes in real-time. “The Augmedix Go note reads like a clinician wrote it,” claimed Mary Kate Case, PA-C, heart and vascular care. “Other AI products I have used sound like a machine producing the note.”
In Q1 2024, Augmedix, disclosed its total revenue of $13.5 million, an incredible 40% increase from the same quarter in the previous year, where the overall sales were $9.6 million.
Manny Krakaris, Augmedix CEO, commented on the remarkable growth of the company:
“Augmedix delivered in-line first quarter performance, with 40% revenue growth, 143% net revenue retention, and 47.1% gross margins,” “We are confident about our positioning within the medical documentation market, and expect to report continued growth throughout the rest of the year. It is now clear, however, that health systems are proceeding methodically while they develop a better understanding of the capabilities of AI products.”
“We are seeing an increasing amount of interest with new and existing customers that are evaluating our AI products, Augmedix Go and Augmedix Go Assist, including active discussions for large deployments. In particular, the recently introduced ER version is resonating with health systems as it is the first fully-automated, generative AI-powered medical documentation product for acute care. Augmedix Go Assist is quickly becoming a compelling solution given its attractive mix of price and efficiency. Meanwhile, following a successful pilot, our strategic partner HCA Healthcare is planning to expand Augmedix Go to additional emergency departments within its health system.”
Overall, Augmedix’s annual revenue has also increased every year. Revenue surged from $22.17 million in 2021 to $30.93 million in 2022 and then $44.85 million in 2023. Thus, investors are hoping to gain profits, making it the most popular AI penny stock under $1.
Meanwhile, elite funds are piling into this stock as well, with hedge fund positions increasing from 26 in Q4 2023 to 27 in Q1 2024 with a collective stake of $122.124 million, giving us a clear hint that investors are bullish on Augmentix’s stock. Krystal Biotech Inc. is the largest stakeholder in the company, with 1,508,250 shares worth $268.36 million.
While we acknowledge the potential of Augmedix as an AI play, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AUGX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. 10 Most Popular AI Penny Stocks Under $1 is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
