12 Best AI Penny Stocks to Buy According to Hedge Funds

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2. Unisys Corporation (NYSE:UIS)

Number of Hedge Fund Holders: 25

Unisys Corporation (NYSE:UIS) is a global information technology company that provides a range of services, including digital transformation, cloud solutions, cybersecurity, and enterprise computing. The company offers technology consulting, managed services, and solutions that help businesses modernize their infrastructure and operations. UIS primarily serves industries such as financial services, government, healthcare, and commercial sectors. Its products include advanced AI solutions, with a focus on leveraging automation and machine learning to optimize business processes. The company has been investing in AI and data analytics to enhance its offerings and meet the increasing demand for intelligent, data-driven technologies.

Unisys Corporation (NYSE:UIS) delivered solid Q4 results with 10% sequential revenue growth and a strong non-GAAP operating margin of 11.6%. The company exceeded its initial free cash flow outlook and achieved its goal of improving cash conversion, with pre-pension free cash flow nearly doubling to $82 million in 2024. For 2025, UIS expects pre-pension free cash flow of approximately $100 million, demonstrating continued progress toward long-term goals. The company raised its License & Support (L&S) revenue expectations to approximately $390 million in 2025 and $400 million in 2026, with an average expected gross margin of approximately 70%. New business Total Contract Value (TCV) showed strong momentum, reaching approximately $790 million for the full year, up 29% compared to 2023, with new logo TCV more than doubling year-over-year.

Unisys Corporation (NYSE:UIS)’s strategic priorities for 2025 include focusing on AI, application services, ClearPath Forward 2050, and go-to-market initiatives. Unisys demonstrated operational improvements through sustained Ex-L&S gross margin expansion and stronger L&S performance, while the resolution of several legal matters in 2024 eliminates future headwinds to cash from legal costs. The company’s workforce initiatives showed positive results with low trailing 12-month voluntary attrition of 11.8% compared to 12.4% a year ago. With at least 25 hedge funds owning the stock, UIS is one of the best AI penny stocks to buy according to hedge funds.

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