We recently compiled a list of the 10 Best Artificial Intelligence Stocks to Buy Under $10. In this article, we are going to take a look at where Rekor Systems, Inc. (REKR) stands against the other artificial intelligence stocks. You can also check out the 20 Most Used Artificial Intelligence (AI) Platforms of 2024 here.
Artificial Intelligence (AI) is expected to be among the primary drivers of transformation and competitive advantage in the rapidly changing economy. The AI industry has experienced strong growth, and this is evident in the doubling of global funding to $66.8 billion as of 2021. Moreover, a record number of 65 AI companies achieved valuations exceeding $1 billion in 2021. This reflected a 442% increase from the preceding year. Each year observes higher adoption of AI solutions by companies and governments worldwide.
In 2022, the global market size for artificial intelligence reached $454.1 billion. The market is projected to reach approximately $2,575.2 billion by 2032. This growth reflects a compound annual growth rate (CAGR) of 19% from 2023 to 2032. In 2022, North America led the market with the largest share. This was mainly due to the high demand for advanced hardware and software products that automate tasks across various industries. Moreover, supportive government policies encouraging AI adoption have also contributed significantly to market growth in the region.
Specifically, the United States’ artificial intelligence market was valued at $103.7 billion in 2022. It is projected to grow to approximately $594 billion by 2032, with a compound annual growth rate of 19.1% from 2023 to 2032.
According to a report by PwC, by 2030, AI has the potential to add approximately $15.7 trillion to the global economy, exceeding the current combined output of China and India. This contribution is expected to break down into $6.6 trillion from higher productivity and $9.1 trillion from effects related to increased consumption.
In the short term, AI is expected to provide the most significant economic benefits through increased productivity. This will involve automating routine tasks, improving employees’ skills, and enabling them to concentrate on higher-value work. Improvements in labor productivity are projected to account for over 55% of all GDP gains from AI between 2017 and 2030.
Over time, the boost to GDP from product improvements and consumption, driven by AI, will surpass the productivity gains. In 2030, 58% of all GDP gains are expected to come from consumption impacts. Consumers will be mainly drawn to higher-quality and more personalized products and services.
According to a new report by Bloomberg Intelligence (BI), the generative AI market, driven by consumer programs like Google’s Bard and OpenAI’s ChatGPT, is set to grow significantly. It is projected to expand from a market size of $40 billion in 2022 to $1.3 trillion over the next decade. The increasing demand for generative AI products is expected to generate approximately $280 billion in new software revenue. This growth will be fueled by specialized assistants and copilots that improve coding efficiency.
Keeping in view the bright outlook of the AI industry, let’s take a look at the best artificial intelligence stocks to buy under $10.
Our Methodology
To shortlist the best artificial intelligence stocks under $10, we relied on Insider Monkey’s database of 920 hedge funds as of Q1 2024 to analyze the hedge fund sentiment for each stock. We picked the artificial intelligence stocks with the highest number of hedge fund investors. 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 control room filled with monitors providing situational awareness of the traffic situation.
Rekor Systems, Inc. (NASDAQ:REKR)
Number of Hedge Fund Holders:16
Stock Price: $1.42
Rekor Systems, Inc. (NASDAQ:REKR) is a leading company using artificial intelligence (AI) to transform roadways into intelligent systems. The company was founded in 2017 and is headquartered in Columbia, Maryland.
Rekor Systems, Inc. (NASDAQ:REKR) reported strong financial results for Q1 2024. Revenue jumped 58% year-over-year, reaching $9.8 million compared to $6.2 million in Q1 2023. Recurring revenue also showed positive growth, increasing 18% to $5.0 million from $4.2 million in the same period last year.
The company also improved its market position through the acquisition of All Traffic Data in January 2024. Furthermore, Rekor Systems, Inc. (NASDAQ:REKR) strengthened its financial standing by completing a $26.4 million public offering in February and early redemption of senior secured notes.
Analysts have a positive outlook on Rekor Systems, Inc. (NASDAQ:REKR), assigning a Moderate Buy rating to the stock. Looking toward the next 12 months, the average price target for the stock sits at $4.50, which translates to a potential upside of over 200%.
Overall REKR ranks 7th on our list of the best artificial intelligence stocks to buy under $10. You can visit 10 Best Artificial Intelligence Stocks to Buy Under $10 to see the other artificial intelligence stocks that are on hedge funds’ radar. While we acknowledge the potential of REKR 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 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.
