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 Richtech Robotics Inc. (NASDAQ:RR) 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 ceramics artist crafting a wearable medical robotics to aid in daily living.
Richtech Robotics Inc. (NASDAQ:RR)
Share Price as of March 24: $2.26
Number of Hedge Fund Holders: 4
Richtech Robotics Inc. (NASDAQ:RR) develops and deploys AI-driven robotic solutions for service industry automation. It offers a range of robots like Matradee, Medbot, and DUST-E for delivery, sanitation, and food service. With increasing AI integration, these robots aim to optimize efficiency and customer experience in environments such as restaurants, hotels, hospitals, and retail centers.
The company’s ADAM robot barista is powered by NVIDIA AI and interacts with customers. It takes verbal orders and prepares beverages. This technology is featured in the company’s brand, called Coffee & Tea, which launched its first location in Las Vegas. Richtech Robotics Inc. (NASDAQ:RR) also showcased other AI-powered service robots, like Scorpion, recently at CES.
To further AI and robotics research, the company launched the Richtech Accelerator Program. This program provides US universities with access to the company’s robotic systems to improve AI models. Columbia University is the first partner, which focuses on Natural Language Processing for human-robot interaction. Richtech Robotics Inc.’s (NASDAQ:RR) strategy includes launching new brands that use its AI technology and investing in research programs to advance AI development.
Overall, RR ranks 8th on our list of the most popular AI penny stocks to buy under $5. As we acknowledge the growth potential of RR, 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 RR 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.
