We recently published a list of the 10 Most Popular AI Penny Stocks to Buy Under $5. In this article, we are going to take a look at where Rekor Systems Inc. (NASDAQ:REKR) stands against other popular AI penny stocks to buy under $5.
Umesh Sachdev, the CEO of Uniphore, recently appeared on CNBC on March 19 to talk about what he calls the ‘the third year of a ten-year AI buildout’. Sachdev shared his perspective on the GPU Technology Conference (GTC) conference during this conversation. GTC is a global AI-focused event held semi-annually that brings together developers, engineers, researchers, and IT professionals to explore advancements in AI, ML, computer graphics, and autonomous machines. Sachdev attended both Jensen Huang’s keynote and spoke on a panel afterward. He highlighted several announcements that caught his attention. These included the Vera Rubin chips and the next-generation Blackwell Ultra chips, which were expected advancements in computing power.
However, what stood out most to him was Huang’s discussion around Agentic AI and physical AI. He explained that AI agents are becoming smarter and beginning to reason. This development is significant for customers like insurance companies, banks, telecom companies, and manufacturing firms. Sachdev noted that AI agents are already assisting employees or replacing certain jobs within these companies, and are performing tasks faster and more efficiently. Similarly, physical AI robots are being implemented in manufacturing setups with guardrails, which showcases early applications of these technologies. He believes these advancements will lead to what he calls an age of abundance, which will ultimately improve free cash flow for many publicly traded companies and create a bright future for AI in the enterprise.
Our Methodology
We sifted through financial media reports and stock screeners to compile a list of the top AI penny stocks that were trading under $5 as of March 24. We then selected the 10 AI stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A control room filled with monitors providing situational awareness of the traffic situation.
Rekor Systems Inc. (NASDAQ:REKR)
Share Price as of March 24: $1.00
Number of Hedge Fund Holders: 5
Rekor Systems Inc. (NASDAQ:REKR) is a technology company that specializes in AI-driven infrastructure solutions for transportation, public safety, and urban mobility. It offers platforms like Rekor One and Rekor Scout for roadway intelligence and incident response. It uses AI for vehicle and license plate recognition.
The company’s AI-powered urban mobility platform, called Discover, is seeing rapid adoption. Florida has approved Discover for statewide deployments. New York has advanced it to procurement and granted access to 115,000 miles of roadways. New Mexico is investing $200 million in a project using the company’s AI. The company is engaged with over a dozen states and manages 1.2 million miles of roadways.
The company’s AI technology is positioned to transform 4.2 million miles of US roadways. Rekor Systems Inc. (NASDAQ:REKR) anticipates a potential 40% CAGR in revenue within the next five years, driven by its AI solutions. The company’s Q3 2024 revenue reached $10.5 million for the same reasons, which was a 16% increase. Recurring revenue was $5.5 million, which was up 14%.
Overall, REKR ranks 7th on our list of the most popular AI penny stocks to buy under $5. As we acknowledge the growth potential of REKR, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than REKR 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.
