7 Most Popular AI Penny Stocks Under $5

2. Lantronix, Inc. (NASDAQ:LTRX)

Number of Hedge Fund Holders: 13

Lantronix, Inc. (NASDAQ:LTRX) is a global provider of Internet of Things (IoT) solutions which help businesses connect devices to the Internet. It specializes in connectivity, compute, and software technologies that enable devices to connect and communicate securely with higher efficiency, in industries like healthcare, transportation, building automation, and retail.

In FQ2 2024, the company generated a revenue of $41.2 million, beating estimates by $962,800 and logging a 25% year-over-year growth. The earnings per share were $0.11 and also exceeded expectations by $0.01. IoT System Solutions revenue alone surged by 91% year-over-year.

Lantronix, Inc. (NASDAQ:LTRX) is expanding in the smart grid and automotive sectors. They secured a repeat order from a major smart grid customer and are actively engaging with automotive original equipment manufacturers (OEMs) to provide solutions for interactive displays and digital cockpits.

It is combining edge computing devices with its Percepxion IoT software to make it easier for businesses to use AI in an edge network orientation. This way, businesses can process data closer to where it’s created, improving efficiency and reliability.

Recently, it entered into a cooperation agreement with 180 Degree Capital, a significant shareholder. This included the nomination of directors, Derhacobian and Palatnik, bringing extensive experience in the technology industry to contribute to improvements at the company.

As Lantronix, Inc. (NASDAQ:LTRX) continues to make strides in the Internet of Things (IoT) industry with newer developments and partnerships, it has the potential to become a multibagger in the years to come. LTRX is ranked 2nd among the best AI penny stocks to buy right now.

13 hedge funds hold this company as of June 30, with First Eagle Investment Management being the highest shareholder, with a position of $3.03 million.

Wasatch Micro Cap Value Strategy stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its first quarter 2024 investor letter:

“Another significant detractor was Lantronix, Inc. (NASDAQ:LTRX), which provides integrated software and application development, software as a service (SaaS) management, intelligent edge computing and a wide range of sensors and trackers. The stock moved higher early in the quarter based on expectations for strong revenues and earnings. But when the numbers were released later in the quarter, the stock plummeted because Lantronix failed to meet expectations. While we were disappointed along with other investors, we note that revenues and earnings did in fact increase—albeit modestly. Considering the attractive valuation currently, we’ve maintained our position in the company.”