In this article, we discuss the 15 AI stocks that skyrocketed in Q4 2024 along with experts’ opinions on the future of AI.
AI has been dominating the news, market, and basically almost everything we come across for the last two years, since the launch of ChatGPT. In 2024, AI made significant strides, especially in agentic systems and smaller, more efficient models. In addition to that, advancements in retrieval-augmented generation (a method that combines information retrieval with text generation) improved data accuracy and reduced AI errors, while smaller models became faster and more energy-efficient, making AI more accessible.
However, the year also saw a rise in AI-driven cybercrime, with deepfakes used in scams and election interference. As these risks grew, governments and regulators began to implement measures to control AI’s development and use. However, opinions on the balance between innovation and safety remain divided.
The Next Chapter for AI in 2025
While AI continues to evolve and shows immense long-term potential, it still faces challenges such as data limitations, model reliability, and the need for revenue-generating applications. With the maturity of this technology, it will be crucial to address these obstacles in order to meet investor expectations and unlock its full potential in the coming years.
Julie Biel, chief market strategist and portfolio manager at Kayne Anderson Rudnick, discussed the current state of AI investments in a CNBC interview and noted that while significant capital has been poured into developing the technology, much of it is still at the infrastructure stage. She pointed out that AI’s efficiency improvements are beneficial, but the lack of revenue-generating use cases is preventing broader enthusiasm. Biel also raised concerns about a potential AI bubble, as she mentioned issues such as hallucinations and data limitations that could become a hurdle in short-term progress. Despite the strong long-term outlook, she suggested that investors’ patience may wear thin if immediate returns do not materialize.
In another CNBC interview, Anastasia Amoroso, iCapital chief investment officer, highlighted the continued growth of AI as a major theme in 2024, especially its expansion into AI software and power. She noted that while the last two years focused on semiconductors, this year should focus on AI software monetization and the energy demands of AI infrastructure, like data centers. Amoroso believes that AI will remain a key investment opportunity into 2025 and that the sector’s broadening scope, including AI software and its supporting power needs, presents solid prospects for growth.
15 AI Stocks That Skyrocketed in Q4
Our Methodology:
For this article, we listed 15 best-performing stocks from Insider Monkey’s database of AI stocks with at least over 100% share price returns in the fourth quarter of 2024. The stocks are listed in ascending order of their share price performance. We also added the hedge fund sentiment around each stock which was taken from Insider Monkey’s Q3 database of 900 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
15 AI Stocks That Skyrocketed in Q4
15. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Stock Price Performance in Q4 2024: ~103%
Palantir Technologies Inc. (NASDAQ:PLTR) creates software platforms for data integration and analysis and helps users uncover patterns and execute responses to threats. Its products include Palantir Gotham, which helps in counterterrorism efforts, Palantir Foundry helps centralize organizational data, and Palantir Apollo is used for software deployment. The company also offers an AI platform that provides access to large language models to transform structured and unstructured data for organizational use.
Unlike many other stocks on our list of AI stocks that skyrocketed in Q4, Palantir (NASDAQ:PLTR) kept its momentum throughout the year as it gained around 340% in 2024. The surge was owed to its position as a leading AI-focused software company. Its strengths include strong revenue and margin growth. In Q3, Palantir reported non-GAAP EPS of $0.10 and revenue of $725.52 million, a 30% increase year-over-year, beating expectations by $21.83 million. The company closed 104 deals that were over $1 million and grew its customer base by 39% year-over-year.
It also reported a strong cash position with cash, cash equivalents, and short-term U.S. Treasury securities of $4.6 billion and $435 million in adjusted free cash flow, a 60% margin. For Q4, revenue is projected at $767 million – $771 million, above consensus, and adjusted income from operations at $298 million – $302 million. The 2024 outlook includes raised revenue guidance of $2.805 billion – $2.809 billion and free cash flow exceeding $1 billion.
As we discussed in our article, 6 Stocks Jim Cramer Talked About This Week, here is what Mad Money host Jim Cramer said about Palantir (NASDAQ:PLTR) in a December episode:
“Then there’s Palantir. Now this enterprise software/defense contractor is a real company. I mean like totally real. It has a tremendous business model. It could change the entire defense department budget. But in some ways, Palantir is a renegade company playing by its own rules… The CEO actually caters not to Wall Street, but to Main Street, individual investors. The difference is that when it comes to enterprise software, you don’t use price-to-earnings models, you use this difficult-to-understand Rule of 40 where you add the revenue growth rate to the EBITDA margin. If the sum is above 40, then you got a winner.
Most companies that are losing money can’t reach that number, but some can if they have incredible revenue growth. Palantir appeared to be losing money hand over fist but it passed the Rule of 40 tests with flying colors. Since then, the growth’s been accelerating rapidly. The profits are exploding. It’s among the fastest growers in the entire industry. Top of the Rule of 40.
… So why didn’t we see it? Because the CEO was too brash and the actual business too opaque? By nature what they do is secretive but there are plenty of renegade traders and investors, see, they saw it. The kind who made money and got out of AMC near the high when the CEO sold. The kind who made 100 or 200 bucks on GameStop. These people bought Palantir on CEO, Alex Karp’s say so. To them, it was worth a lot more than anything else, even as it was worth nothing to the Wall Street analysts who covered it. Now Palantir’s made a major breakout. It is up 340% for the year. Seems obvious in retrospect, but it was anything but at the time.”
14. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Stock Price Performance in Q4 2024: ~110%
Bloom Energy Corporation (NYSE:BE) designs and manufactures solid-oxide fuel cell systems for on-site power generation. Its Bloom Energy Server converts fuels like natural gas, biogas, and hydrogen into electricity through an electrochemical process, avoiding combustion. The company sells its products to industries including utilities, data centers, healthcare, and manufacturing.
One of the primary reasons for Bloom Energy’s (NYSE:BE) stock price surge was its announcement of a supply agreement with American Electric Power (AEP) for up to 1 gigawatt of its fuel cell products, marking the largest commercial fuel cell procurement globally. AEP already ordered 100 megawatts, with further expansions anticipated in 2025. The agreement built on previous collaborations, with a focus on deploying solid oxide fuel cells for commercial and industrial use, including powering AI data centers.
Bloom Energy’s (NYSE:BE) stock further benefited from positive sentiment from analysts such as Kashy Harrison of Piper Sandler, who increased the stock’s price target from $20 to $30 and maintained an Overweight rating a week after Bloom’s announcement of the supply agreement.
13. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Number of Hedge Fund Holders: 30
Stock Price Performance in Q4 2024: ~118%
Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers high-speed connectivity solutions for optical and electrical Ethernet applications. Its products include active electrical cables, digital signal processors, chiplets, and IP licensing for SerDes. The company serves customers in areas like hyperscaling, original equipment manufacturing, and the enterprise and HPC markets.
Credo (NASDAQ:CRDO) experienced the highest rise in its stock price since 2022 after it reported FQ2 2025 results on December 2. The company generated a revenue of $72.03 million, up nearly 63% year-over-year and EPS of $0.07 outperformed the estimates by $0.02. The company also provided an FQ3 revenue outlook between $115 million and $125 million compared to the $86.03 million consensus.
After the earnings, BofA double-upgraded the stock to Buy from Underperform and raised the price target to $80 from $27. The firm highlighted Credo’s shift to a more robust earnings growth model and expects a multi-year adoption cycle for its Active Electrical Cable product, which supports energy-efficient AI clusters. According to analyst Vivek Arya, the company is expected to deliver a strong second half of FY25, driven by AI growth at Amazon Web Services and momentum with major customers like Microsoft, Amazon, and Tesla, along with progress in areas like optical DSP and line card PHY.
12. Xometry, Inc. (NASDAQ:XMTR)
Number of Hedge Fund Holders: 7
Stock Price Performance in Q4 2024: ~132%
Xometry, Inc. (NASDAQ:XMTR) operates an online marketplace that connects buyers with suppliers of custom-manufactured parts and assemblies. The company offers a variety of services, including CNC manufacturing, 3D printing, die casting, injection molding, and rapid prototyping. Xometry serves industries such as aerospace, healthcare, robotics, automotive, and defense. The company uses big data and machine learning algorithms to optimize pricing and sourcing in custom part manufacturing. The company’s AI-driven platform uses a vast dataset to provide predictive pricing and matchmaking that improve lead times and prices over time.
Several factors were responsible for Xometry’s (NASDAQ:XMTR) stock performance including its Q3 results where it reported a non-GAAP EPS of $0.02, exceeding estimates by $0.07, with revenue reaching $141.7 million, up 19.1% year-over-year and surpassing expectations by $3.98 million. The stock also shot up after President-elect Donald Trump’s victory as industrial distributors like Xometry (NASDAQ:XMTR) gained because investors anticipated benefits from Trump’s proposed policies on domestic manufacturing, tariffs, tax cuts, and regulation.
Wedbush initiated coverage of Xometry on December 20 with an Outperform rating and a $48 price target, as it noted its leadership in the digital custom manufacturing marketplace. The firm highlighted the industry’s slow shift online and credited the company’s expanding buyer and supplier network, along with advanced AI-driven pricing and matching algorithms, as key strengths. Wedbush expects sustained high growth for Xometry over the coming years.
11. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 10
Stock Price Performance in Q4 2024: ~136%
Innodata Inc. (NASDAQ:INOD) is a New Jersey-based data engineering company offering AI data preparation services, including data collection, annotation, and AI model integration. Its services cover data transformation, curation, compliance, and master data management. The company also provides Synodex, a platform for converting medical records into usable digital data, and Agility, a platform for marketing communications and media monitoring.
Innodata’s (NASDAQ:INOD) solid Q3 earnings report, reported on November 7, was one of the main reasons for the company’s stock price performance in Q4. It reported EPS of $0.51, outperforming the estimates by $0.38 and revenue of $52.22 million was up 135% year-over-year, exceeding estimates by $16.1 million. The company also raised its full-year revenue guidance and now expects between 88% and 92% year-over-year revenue growth.
In December, Wedbush analyst Dan Ives initiated coverage on Innodata (NASDAQ:INOD) with an Outperform rating and a $48 price target. The analyst highlighted Innodata’s role as a key partner for data quality and scalability, working with five of the “Magnificent 7” companies and expecting two additional deals this year. He noted:
“We believe Innodata’s expertise in data annotation and AI over its decades of experience will lead the company to be a leader in this developing space.”
10. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 52
Stock Price Performance in Q4 2024: ~148%
Reddit, Inc. (NYSE:RDDT) operates a platform of diverse communities centered around shared interests, encouraging open and authentic discussions. It has proven to be one of the hottest IPOs of 2024. The company stock has gained over 270% since its IPO in March 2024. However, the most notable surge in its stock price could be seen after it announced its Q3 results on October 29.
The company posted revenue of $348.4 million, which was a 68% year-over-year increase, and its Daily Active Uniques increased 47% year-over-year to 97.2 million. Earlier in December, the company also started testing an AI-powered chatbot called Reddit Answers to improve user interactions by helping users find information, recommendations, and discussions across its forums. The tool aims to improve Reddit’s search capabilities, competing with traditional search engines and AI platforms that often summarize Reddit content without redirecting users to the site.
Many analysts are still quite bullish on Reddit (NYSE:RDDT). Citi analyst Ronald Josey and Guggenheim analyst Michael Morris maintained a Buy rating on the company with a $200 and $210 price target, respectively.
9. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
Stock Price Performance in Q4 2024: ~150%
AppLovin Corporation (NASDAQ:APP) builds a software platform that improves advertising and monetization for digital content using AI. Its solutions include marketing software for matching advertiser demand with publisher supply, in-app bidding to optimize ad inventory, app growth analytics, and connected TV advertising. The company offers software and AI solutions that help businesses connect with, monetize, and expand their global audiences.
AppLovin (NASDAQ:APP) had several positive catalysts that led to its huge upward price movement not just in Q4 but the whole of last year. The stock has gained over 730% in the last 12 months due to strong earnings, excitement over its AI-powered advertising engine, and inclusion in the Nasdaq 100.
The company announced its third-quarter results on November 6, with a revenue of $1.2 billion, which was up nearly 40% year-over-year, and it reported EPS of $1.25, compared to $0.30 in the same quarter of 2023. Additionally, when AppLovin (NASDAQ:APP) experienced a pullback in mid-December, Loop Capital called it “perhaps the best opportunity to accumulate the stock during this up cycle.” The firm maintained a Buy rating and raised the stock’s price target to $450 from $385.
8. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 39
Stock Price Performance in Q4 2024: ~153%
Astera Labs, Inc. (NASDAQ:ALAB) designs and manufactures semiconductor-based connectivity solutions for cloud and AI infrastructure. The company is headquartered in California and its offerings include an intelligent connectivity platform with mixed-signal products, microcontrollers, sensors, and COSMOS software, which manages and optimizes resources at a cloud scale. The company provides smart fabric switches, DSP retimers, memory controllers, and Ethernet smart cable modules for AI and cloud connectivity. Astera Labs serves hyperscalers and system OEMs and focuses on AI and cloud solutions.
Astera Labs (NASDAQ:ALAB) has been quite an analyst favorite in Q4. It also unveiled its Scorpio Smart Fabric Switch portfolio, including the first PCIe 6 switch designed for AI workloads in cloud-scale accelerated computing. The portfolio features the Scorpio P-Series for GPU-to-CPU/NIC/SSD connectivity and the Scorpio X-Series for GPU clustering, offering optimized performance, reliability, and energy efficiency for AI platforms.
The company received multiple positive ratings and upward price target revisions from firms such as Barclays, Stifel, Roth MKM, Craig-Hallum, and Evercore ISI along with others at the start of November 2024. Morgan Stanley raised the company price target twice in the last two months of Q4. First in November from $74 to $94 and later in December to a price target of $142.
7. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: N/A
Stock Price Performance in Q4 2024: ~162.5%
Oklo Inc. (NYSE:OKLO) is a Sam Altman-backed company that is developing advanced nuclear power plants that use nuclear waste to generate clean, reliable, and scalable energy. The company has obtained a site use permit from the U.S. Department of Energy, received fuel material from Idaho National Laboratory, and submitted its first advanced fission license application to the U.S. Nuclear Regulatory Commission. It is also working on advanced fuel recycling technologies in partnership with the U.S. Department of Energy and National Laboratories.
Oklo (NYSE:OKLO) gained significantly in Q4 along with other nuclear energy companies as Big Tech including Amazon and Alphabet announced investments in nuclear energy for data centers as power demand increases due to AI. Later on, the company stock also went up when it announced a non-binding master power agreement with Switch to develop 12 gigawatts of Aurora powerhouse projects by 2044. The agreement outlined collaboration plans, with binding deals expected as projects progress.
In December, Wedbush began coverage of Oklo with an Outperform rating and a $26 price target, highlighting its unique business model for small modular reactors. The analyst told investors that Oklo plans to deploy its first 15 MW Aurora microreactor by 2027, scalable to 50 MW and 100 MW, with over 10 years of operation before refueling. The company’s microreactor pipeline is reportedly 93% complete ahead of its planned deployment.
6. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 7
Stock Price Performance in Q4 2024: ~205%
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a Maryland-based company that provides AI-powered decision intelligence solutions, focusing on national security, supply chain management, and digital identity and biometrics. Its services include data ingestion, enrichment, processing, machine learning, predictive analytics, and visualization. The company serves sectors such as defense, intelligence, border protection, security, manufacturing, logistics, and tourism.
BigBear.ai (NYSE:BBAI) stock gained significantly in Q4 due to several reasons. The company secured multiple milestones including a five-year, $165.15 million sole-source contract with the U.S. Army for Global Force Information Management Production Services. It was also awarded a position on the U.S. General Services Administration’s OASIS+ Unrestricted Multiple Agency Contract, a government-wide suite designed to simplify procurement of professional services.
BigBear.ai (NYSE:BBAI) also received multiple positive analyst ratings. In November, Cantor Fitzgerald maintained a Buy rating on the stock with a $3.50 price target, despite the company missing revenue estimates. Later in December, analyst Scott Buck from H.C. Wainwright reiterated a Buy rating with a $7 price target.
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.
4. Kingsoft Cloud Holdings Limited (NASDAQ:KC)
Number of Hedge Fund Holders: 5
Stock Price Performance in Q4 2024: ~257%
Kingsoft Cloud Holdings Limited (NASDAQ:KC) is a China-based company that offers a range of cloud services, including IaaS, PaaS, and SaaS solutions. Its product portfolio covers cloud computing, network services, database management, big data, security, storage, and delivery. The company provides digital solutions and R&D services across various industries, such as video, e-commerce, intelligent mobility, AI, and mobile internet. It also supports enterprise cloud services in sectors like finance, public service, and healthcare.
Kingsoft Cloud (NASDAQ:KC) experienced a surge likely due to multiple reasons in the last quarter. One of the main reasons could be a 16% YoY increase in FQ3 2024 revenue, reaching nearly RMB 1.886 billion (RMB 1 = US$0.14), with significant growth driven by AI and ecosystem services. Public cloud revenue grew 15.6% to $167.5 million, while enterprise cloud revenue rose 16.7% to $101.2 million. AI contributed 31% to public cloud revenue, as noted by CEO Tao Zou.
As mentioned in its earnings call, the company also continues to drive growth with a strong focus on AI and its collaboration with Xiaomi. The company’s revenue growth had significant contributions from Xiaomi’s AI ecosystem, including advancements in autonomous driving and AI. It also renewed its agreements with Kingsoft Corporation (parent company) and Xiaomi for continued cloud services and financial offerings, spanning over three years and starting in 2025.
Kingsoft Cloud (NASDAQ:KC) was also upgraded by notable analysts. On November 22, Nomura upgraded Kingsoft Cloud to Buy with a target price of $6.70, as the firm mentioned that the growth was driven by AI revenue and strong cloud demand from Xiaomi, particularly for electric vehicles, autonomous driving, and language model training, which should boost sales and margins. Moreover, on December 6, The Fly reported that UBS upgraded Kingsoft Cloud to Buy with a price target of $12.50, up from $4.20, following strong Q3 results.
3. Mercurity Fintech Holding Inc. (NASDAQ:MFH)
Number of Hedge Fund Holders: N/A
Stock Price Performance in Q4 2024: ~293%
Mercurity Fintech Holding Inc. (NASDAQ:MFH) is a New York-based company that operates as a fintech company offering business consultation, distributed storage, and computing services. Its services include cryptocurrency mining, providing computing power to mining pools, and cloud storage solutions for decentralized platforms. In December, the company revealed plans to establish a joint venture in Hong Kong with a high-tech company specializing in precision components for new energy vehicles and smart devices. The venture aims to concentrate on manufacturing AI hardware, including precision parts for AI servers and advanced cooling systems.
Mercurity Fintech’s (NASDAQ:MFH) stock performance remained tame in October but experienced a significant rise in share price starting November 8, with some fluctuations observed. Some important happenings included Mercurity Fintech’s CEO, Shi Qiu, emphasizing the company’s commitment to growth and investor relations after participating in the 4th Annual Nasdaq Small-Cap Forum, focusing on adapting to industry trends and improving corporate governance. Moreover, the company’s subsidiary Chaince Securities, received FINRA approval for its acquisition of J.V. Delaney & Associates, advancing its strategy to integrate digital and traditional financial services.
In December, Mercurity Fintech (NASDAQ:MFH) signed a term sheet for a joint venture in Hong Kong focused on AI hardware manufacturing and advanced cooling solutions, with an initial investment of $9.8 million. Furthermore, it closed a private investment in public equity (PIPE) financing, selling 1.47 million shares to an institutional investor at $6.81 per share. The proceeds are aimed at supporting AI hardware manufacturing and advanced liquid cooling technologies to improve AI-driven infrastructure and business growth. It is important to note that Mercurity Fintech (NASDAQ:MFH) is largely influenced by its top shareholders, with over 50% of the company controlled by a few of the largest investors.
2. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 11
Stock Price Performance in Q4 2024: ~326%
SoundHound AI, Inc. (NASDAQ:SOUN) provides voice AI solutions that help businesses create conversational experiences. Its offerings include platforms for building voice assistants, tools for real-time data integration, and AI-powered customer service solutions. The company also provides technologies like speech recognition, natural language understanding, and text-to-speech to enhance functionality.
The start of 2025 has not been so good for SoundHound (NASDAQ:SOUN) but it had quite the run in the fourth quarter of 2024. It achieved some notable milestones in the quarter including its Amelia conversational AI platform winning the XCelent Advanced Technology 2024 Award from Celent for its exceptional functionality and generative AI capabilities in retail banking. Moreover, the company’s AI was integrated into Lancia Ypsilon vehicles’ S.A.L.A. infotainment system, enhancing driver experience with conversational AI features across several European countries.
In November, SoundHound’s (NASDAQ:SOUN) voice technology was integrated into Kia vehicles in India, offering Hindi language support and advanced conversational capabilities for a personalized in-car experience. The company also announced in the same month that its Amelia AI agents have helped Apivia Courtage handle over 100,000 customer calls, reducing direct inquiries by 20% and enhancing employee productivity.
In December 2024, SoundHound AI launched its Smart Ordering system at all 130 Torchy’s Tacos locations, enabling customers to place accurate, natural voice orders. Additionally, SoundHound’s Dynamic Drive-Thru solution was deployed at Church’s Texas Chicken, enhancing order accuracy and reducing wait times through AI-powered, real-time feedback. Meanwhile, SoundHound’s Amelia Conversational AI Platform was recognized as a leader in Frost & Sullivan’s 2024 Radar for Enterprise Conversational AI in Healthcare, showing its innovative solutions that improve patient engagement and streamline healthcare operations.
However, it is important to note that despite posting record third-quarter 2024 results, including an 89% revenue increase to $25.1 million, on November 12, the company stock dropped around 17% by the next day. Analysts had mixed views about the stock. For example, Wedbush remained positive on the stock, while Ladenburg Thalmann downgraded the stock to Neutral due to concerns about the Amelia AI acquisition’s impact on margins and higher expected losses.
1. Palladyne AI Corp. (NASDAQ:PDYN)
Number of Hedge Fund Holders: N/A
Stock Price Performance in Q4 2024: ~585.5%
Palladyne AI Corp. (NASDAQ:PDYN) develops AI/ML software for enhancing third-party stationary and mobile robotic systems across industries like manufacturing, logistics, defense, and aviation. Its platform enables robots to adapt to structured and dynamic environments in real-time with minimal programming or training.
Palladyne AI (NASDAQ:PDYN) saw a decline in stock price since December 30 but had a strong performance in Q4 2024. The stock surged in early October following the announcement of its partnership with Red Cat Holdings to integrate Palladyne’s AI-based Pilot software into Teal drones, enhancing autonomous navigation and object detection.
On October 8, the company also completed Phase I of a contract with the Air Logistics Complex at Warner Robins Air Force Base, continuing to Phase II with its Palladyne IQ software for automated remediation tasks. In late November, news about expanding its partnership with Red Cat likely contributed to another stock surge.
The stock saw a sharp rise of over 270% between December 23 and 30, following the successful autonomous flight of its Palladyne Pilot software, which demonstrated target identification and tracking capabilities. The company plans to commercialize the platform by Q1 2025, making advanced AI available for smaller drones.
While we acknowledge the potential of Palladyne AI (NASDAQ:PDYN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PDYN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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