15 AI Stocks That Skyrocketed in Q4

5. SES AI Corporation (NYSE:SES)

Number of Hedge Fund Holders: 14

Stock Price Performance in Q4 2024: ~242%

SES AI Corporation (NYSE:SES) develops advanced Li-Metal batteries for electric transportation, both on land and in the air. The company uses superintelligent AI across its operations, including research and development, materials sourcing, cell design, manufacturing, and battery health and safety monitoring. SES AI is focused on accelerating innovation in the battery industry using AI-driven approaches.

SES (NYSE:SES) took a battering the whole year in 2024 before seeing a huge rise in its stock price in the last 10 days, including a 100% rise between December 24 and 26 market close. Between the December 23 and 27 market close, the stock surged over 365%. The sharp increase suggests heightened investor interest and likely speculation, as can be seen in the massive spike in trading volume. Despite the rapid growth, the company stock is down over 11% in the last 12 months as of January 8, which could indicate that the rally is likely a corrective bounce from earlier losses rather than a sustained upward trend.

However, the penny stock trader and blogger, Timothy Sykes delved into specific reasons on December 26. He mentioned that SES AI’s advancements in AI and battery technology are fueling investor optimism. The company’s acquisition of Metisoft, part of its strategy to strengthen its position in the SAP sector, also added to the positive sentiment. Furthermore, SES AI’s high pretax profit margin of 2351.4% signals strong profitability. Its negative enterprise value and low price-to-book ratio suggest potential undervaluation, hinting at investment opportunities. He mentioned that the company’s strong financial metrics, such as a low debt-to-equity ratio, reflect its stability. However, the absence of detailed revenue growth data leaves some uncertainty about its financial performance.