12 Best AI Penny Stocks to Buy According to Hedge Funds

4. Vuzix Corporation (NASDAQ:VUZI)

Number of Hedge Fund Holders: 13

Vuzix Corporation (NASDAQ:VUZI) specializes in the design, manufacture, and marketing of smart glasses and augmented reality (AR) technologies for enterprise, medical, defense, and consumer markets. Their product lineup includes the M400 and M4000 series smart glasses, Vuzix Blade, Vuzix Shield, and Vuzix Ultralite smart glasses, all of which integrate cameras, sensors, and computing capabilities to facilitate applications such as remote support, training, and field service. The company also offers OEM optical components, including waveguide optics and display engines, to support various AR applications. With over 375 patents and patents pending, VUZI emphasizes innovation in wearable display technology. Their products are distributed globally through resellers, distributors, direct sales to commercial customers, and online platforms.

Vuzix Corporation (NASDAQ:VUZI) is experiencing significant developments in its AR/AI smart glasses business, highlighted by a strategic partnership with Quanta Computer that included a $20 million multiphase investment. The company introduced multiple new products, including the Ultralite Pro AR smart glasses platform and Ultralite Audio smart glasses platform at CES 2025, receiving positive market response and industry recognition. The company’s proprietary waveguide technology enables processing hundreds of waveguides per single run, providing a significant competitive advantage in terms of production capacity and cost. VUZI’s patent portfolio has expanded by 50% in the past two years to over 425 patents, strengthening its position in optical waveguide and wearable computing technologies.

Vuzix Corporation (NASDAQ:VUZI) anticipates significant growth in 2025 through multiple design wins for both consumer and enterprise OEM products, along with expanded opportunities in defense and security markets. Financial position shows approximately $18 million in cash and cash equivalents as of year-end 2024, with additional funding expected through the remaining $10 million investment from Quanta Computer. The company has implemented significant cost reductions, achieving a 36% YoY decrease in recurring cash operating costs in Q4 2024. Management expects to maintain these expense savings while moving forward with business expansion in 2025, with adequate resources to support operations well into 2026. With at least 13 hedge funds owning the stock, VUZI is one of the best AI penny stocks to buy according to hedge funds.