We recently compiled a list of the 10 Most Popular AI Penny Stocks Under $1. In this article, we are going to take a look at where Global Mofy Metaverse Limited (NASDAQ:GMM) stands against the other popular AI penny stocks.
Into the AI Market:
The stock market is rapidly catching on to the apparent artificial intelligence trend during the last year or two. Many businesses are incorporating Artificial Intelligence technologies into their core business models to save costs, improve performance, and flourish in both current markets and emerging ones. Once, venture entrepreneur Marc Andreessen observed that “software is eating the world” by automating entire industries. It is anticipated that artificial intelligence will similarly change software. According to recent research by MIT, the United States is unequally adopting artificial intelligence, with the majority of its application occurring in big businesses and sectors like manufacturing and healthcare.
As per Grand View Research, the global artificial intelligence industry was estimated to be worth $196.63 billion in 2023, and it is predicted to grow at a CAGR of 36.6% between 2024 and 2030.
OpenAI, a private AI startup, has rapidly evolved into a prominent player in this booming market, with its valuation tripling to almost $80 billion in less than ten months following an agreement with Thrive Capital. The AI startup is recognized globally for its cutting-edge AI models, such as ChatGPT, which received a significant 1.806 billion visits in April 2024 as per SimilarWeb, DALL-E, an image-generating model, and Whisper AI for speech recognition. To lead the way in AI technology, OpenAI unveiled GPT-4o, a new AI model, in May 2024. It can engage with text and graphics and have realistic voice conversations. Macquarie’s Fred Havemeyer commended GPT-4o for its “emotional intelligence.” OpenAI’s approach to the AI revolution is unique because it collaborates with tech titans rather than competing against them. OpenAI represents a generation of AI companies linked with the giants due to the computer capacity as well as the massive financing necessary to advance artificial intelligence learning. According to CNBC Disruptor 50 companies, artificial intelligence plays a crucial role in over half of their revenue, with 34 of them describing AI as critically important to more than half of their revenue. 13 companies claimed that generative AI, specifically, is key to the majority of sales. Chairman of Sinovation Ventures, Kai-Fu Lee, expressed his belief that OpenAI would soar to the exceptional heights that a few mega-cap businesses with solid business models can achieve. “OpenAI will likely be a trillion-dollar company in the not-too-distant future.” ”This is by far the most advanced and most amazing technology, compared to anything, by a factor of 10,” Lee stated.
Methodology:
In this article, we first used a stock screener, Finviz, to list down all AI stocks trading under $1 (as of the writing of this article) with a high average trading volume of 500k to 10M. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 920 hedge funds in Q1 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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)
A large computer terminal full of complex calculations tracking the company’s cash flow and investment management decisions.
Global Mofy Metaverse Limited (NASDAQ:GMM)
Number of Hedge Fund Investors: 5
On the fourth spot in the list of 10 Most Popular AI Penny Stocks Under $1 is Global Mofy Metaverse Limited (NASDAQ:GMM), a provider of technology solutions that produces virtual content and creates digital assets for usage in the broader digital entertainment market. The company uses its patented “Mofy Lab” technology platform, which combines interactive 3D and artificial intelligence (“AI”) technology, to generate high-definition virtual copies of a wide range of physical world things in 3D, including characters, objects, settings, and more.
Global Mofy Metaverse Limited announced in April that its wholly-owned subsidiary, Gauss AI, has collaborated with Heartdub, a physical simulation technology pioneer based in the United States, to create GAUSSPEED, a generative video AI platform powered by NVIDIA Omniverse technology.
Mr. Haogang Yang, CEO of Global Mofy Metaverse, stated:
“As technology reshapes the entire filmmaking production process and entertainment experience, content creators face extensive challenges. Optimizing traditional workflows in digital entertainment through technological innovation to drive industry advancement is a shared goal among global film production companies, which represents a major opportunity and market expansion for us. Our strategic partnership with Heartdub gives us a competitive advantage, where we execute on a shared vision and leverage our combined resources and technologies, along with leaders like NVIDIA, to transform filmmaking, while creating meaningful near and long-term value for all of our shareholders.”
There are 5 hedge funds in our database for Global Mofy Metaverse Limited (NASDAQ:GMM) during the first quarter of 2024.
The robust development prospects of Global Mofy Metaverse, which are being driven by the growing demand for high-quality digital assets in the digital entertainment industry, provide a bull case for the company. The business has an advantage in the creation of digital assets and virtual content because of its exclusive Mofy Lab technology platform. GMM is positioned to benefit from the AI revolution and the emerging Metaverse as indicated by the revenue growth rate of 56% year over year.
Overall GMM ranks 4th on our list of the most popular AI penny stocks under $1. You can visit 10 Most Popular AI Penny Stocks Under $1 to see the other popular AI penny stocks that are on hedge funds’ radar. While we acknowledge the potential of GMM 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 GMM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
