5 AI Penny Stocks Trading Under $5

Over Labor Day weekend, much like the case was earlier in the year over Memorial Day weekend, the hot topic of conversation will likely be AI and artificial intelligence stocks. AI continues to be a global market theme as the excitement, optimism, and latest developments continue to build. 

If you're open to higher-risk investments, one avenue to explore for exposure to AI is to consider investing in small-cap AI companies. Penny stocks inherently carry a higher level of risk, but they can also present substantial rewards if they perform well. Given the growing influence of AI worldwide, it could be prudent to compile a list of speculative small-cap AI stocks for consideration.

Here's a look at five small-cap AI stocks trading under $5.

Guardforce AI (NASDAQ: GFAI)

Guardforce AI has been a leading provider of comprehensive cash solutions and handling services in Thailand. The company is expanding its offerings to include AI and robotic solutions, leveraging its strong foundation and secure logistics.

The company aims to enhance operational efficiency and establish a prominent presence in Asia Pacific and eventually worldwide by developing innovative AI and robotics technologies. 

YTD shares of GFAI are down over 10% and last trading for $4.53 per share. This comes after the stock experienced a significant pullback from its high of $36.90 in April. With a market cap of just $29 million and a float of just 1.5 million, it's no surprise this stock has experienced volatility in recent months.

BigBear.ai Holdings (NYSE: BBAI)

BigBear.ai delivers AI and ML solutions for decision support. The company operates in two segments, Cyber & Engineering and Analytics, and offers high-end technology and consulting services. BigBear.ai empowers its customers with real-time decision-making capabilities by aggregating, interpreting, and synthesizing data. 

YTD shares of BigBear.ai are up 143% and last traded at $1.64 per share. BBAI has a market cap of $255 million and a public float of 152 million shares. Only one analyst covers the stock, HC Wainwright, and they have set a Buy rating along with a $4 price target, predicting almost 200% upside for the stock.

Remark Holdings (NASDAQ: MARK)

Remark develops and implements AI products and AI-based solutions for companies in various industries. The company provides services to businesses in the financial, retail, entertainment, education, workplace, and public safety industries. 

Historically, shares of Remark have performed poorly, with the stock consistently trending lower over the last several years. Year-to-date, the stock is down 46%. With a market cap of just $10 million, annual sales of $11.67 million, 18 million outstanding shares, and a public float of just 16 million shares, Remark is a pure micro-cap speculative play, yet to prove itself. 

SoundHound AI (NASDAQ: SOUN)

SoundHound AI specializes in AI solutions for voice-enabled devices and mobile applications. The company is a pioneer in voice recognition technology. It is known for its popular SoundHound and voice recognition app, downloaded over 315 million times worldwide, and partnered with leading car manufacturers to integrate its technology into vehicles. 

SOUN trades at $2.52 a share and is up 42% YTD. One analyst covers the stock and has placed a Buy rating with a $4.35 price target, predicting over 72% upside. The company has a market cap of $606 million and a public float of 189 million shares, with 240 million shares outstanding.

Bullfrog AI (NASDAQ: BFRG)

Bullfrog AI is a digital biopharmaceutical company specializing in AI and ML for medical and healthcare data analysis. They offer an AI/ML platform called bfLEAP for studying preclinical and clinical data. The company holds licensing agreements with George Washington University for siRNA targeting Beta2-spectrin in treating various human diseases and with Johns Hopkins University for a Mebendazole formulation to treat cancer and neoplastic diseases. 

BFRG last traded for $3.28 and has a micro-cap of just $20 million, with only 6 million shares outstanding. It's worth noting that the stock also has a significant short interest, with almost 21% of the float sold short. The stock is trading near the low end of its 52-week range, with a low of $2.47 and a high of $9.50. 

The article "5 AI Penny Stocks Trading Under $5" first appeared on MarketBeat.