We recently published a list of Complete List of All AI Companies Under $2 Billion Market Cap. In this article, we are going to take a look at where Lantern Pharma Inc. (NASDAQ:LTRN) stands against other AI companies under $2 billion market cap.
It’s clear that AI holds immense promise but it comes with significant risks. Some of the concerns that the market has include overreliance on a few key players, shifts in demand toward smaller competitors, and the broader impact of AI-driven market trends on earnings and valuations. While AI offers opportunities, managing risks such as customer concentration, economic headwinds, and market volatility will be crucial for its sustainable growth and integration.
Navigating AI Expectations and Market Dynamics
On CNBC ‘Fast Money,’ a discussion between traders highlighted concerns about elevated expectations for AI, especially in the chip market, with NVDA as a prime example. Past patterns in the semiconductor giant’s stock suggest potential declines, with customer concentration being a significant risk. Some believe demand for high-end chips could shift to smaller semiconductor companies. They also discussed that broader market performance might improve as other sectors gain traction, especially during earnings season, which is expected to influence investor sentiment more than AI and GLP-1 trends.
They mentioned that the key risks for earnings include the strong U.S. dollar, rising rates, and policy uncertainties, which may impact large-cap companies. While recent PPI data offered some relief, the bond market remains firm, with 10-year yields approaching 5%. Expectations for CPI and PCE figures are mixed, with potential reacceleration seen as a headwind for markets in a higher rate environment. Earnings and economic data were considered critical factors to watch by the traders.
Our Methodology
For this article, we scoured our database as well as several ETFs and media reports to find all possible AI stocks under $2 billion. We then listed the stocks in ascending order of their market cap. We also added the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of 900 hedge funds.
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 researcher standing in a modern laboratory, surrounded by scientific equipment.
Lantern Pharma Inc. (NASDAQ:LTRN)
Market Capitalization: $39 Million
Number of Hedge Fund Holders: 3
Lantern Pharma Inc. (NASDAQ:LTRN) uses artificial intelligence, machine learning, and genomic data through its RADR platform to advance precision oncology. The company also offers an ADC therapeutic approach and collaborates with Oregon Therapeutics to optimize a cancer treatment candidate, XCE853, using AI.
In its third quarter 2024 earnings call, Lantern Pharma’s (NASDAQ:LTRN) CEO, Panna Sharma, highlighted the company’s progress in AI-guided drug development, powered by its RADR AI platform. The company is advancing multiple drug programs, including LP-184 and LP-284, with promising clinical data, such as the FDA Fast Track designation for LP-184 in glioblastoma.
AI is central to the success, especially in identifying biomarkers and guiding drug development, like with PTGR1 for LP-184. The company is also using AI to advance antibody-drug conjugates (ADC) and strengthen its position in the oncology field. The company’s AI-driven approach is helping to accelerate drug development and reduce costs.
Overall, LTRN ranks 49th on our list of AI companies under $2 billion market cap. While we acknowledge the potential of LTRN 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 time frame. If you are looking for an AI stock that is more promising than LTRN 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.
