7 Most Popular AI Penny Stocks Under $5

4. Perfect Corp. (NYSE:PERF)

Number of Hedge Fund Holders: 9

Perfect Corp. (NYSE:PERF) is a global SaaS artificial intelligence and augmented reality company, helping businesses sell their beauty and fashion products. It uses cloud-based AI technology that lets people try on makeup, jewelry, and clothes online without putting them on, making online shopping immersive. The company has an expansive client base including some major brands like L’Oréal, Estée Lauder, and Sephora.

In Q2 2024, Perfect Corp. (NYSE:PERF) generated $13.91 million in revenue, representing 9.60% year-over-year growth. The earnings per share for the quarter were $0.01.

AI-AR cloud solutions and the company’s mobile app subscription business drove growth. The subscription revenue contributed 92.8% to the total revenue. The mobile app’s active subscribers surged by 18.3% year-over-year, reaching an all-time high of over 919,000.

Growth was also driven by additional categories and increased popularity of GenAI technologies for AI creation and editing features for photos and video. Since Q1 2024, the customer base increased by 20 brand clients, achieving a total of 686 brand clients with over 774,000 SKUs for makeup, skincare, eyewear, and jewelry products by the end of June.

In Q2, the company launched the world’s first HD skin analysis solution capable of detecting 2x higher precision when doing AI skin analysis on a user’s face. The improved AI model can handle more input data from high-definition smartphone cameras. Other significant strides include the ability to seamlessly transfer makeup looks from images, and the option to virtually try on multiple jewelry items simultaneously.

Perfect Corp. (NYSE:PERF) is executing well on its expansion and its technological innovations such as the HD skin analysis solution are going to help it grow meaningfully in the future. It is one of the best AI penny stocks to buy now. It is held by 9 hedge funds as of June 30.