July 19, 2024
Updated August 20th, 2024
Last updated September 5th, 2024
The Next Beneficiaries of the AI Revolution
The ongoing AI revolution is significantly impacting various sectors, with quantum computing, robotics, and biotech being at the top of our list right now. All have unique advantages and applications that could shape the future of technology and business. Which of these will benefit near-term? Let’s take a look.
Quantum Computing
Quantum Computing and AI
Quantum computing leverages quantum mechanics to process information in ways that classical computers cannot. This technology is ideal for handling complex computations, making it valuable for enhancing AI capabilities.
Key Benefits
Enhanced Computational Power: Quantum computers can perform complex calculations much faster than classical computers, making them ideal for AI algorithms that require significant processing power.
Optimization: Quantum computing can optimize machine learning models more effectively, leading to more accurate predictions and insights.
Cryptography: Improved encryption and security measures can be developed using quantum algorithms, enhancing AI’s role in cybersecurity.
Top Companies
IonQ, Inc. (NYSE: IONQ): Specializes in developing general-purpose quantum computers for a wide range of applications.
Rigetti Computing (NASDAQ: RGTI): Focuses on quantum integrated circuits and quantum cloud services.
Quantum Computing Inc. (NASDAQ: QUBT): Provides quantum-ready software solutions, making quantum technology more accessible to various industries.
Robotics
Robotics and AI
Robotics integrates AI to perform tasks autonomously, improving efficiency and productivity in various industries, including manufacturing, healthcare, and logistics.
Key Benefits
Automation: AI-driven robots can automate repetitive tasks, reducing human error and increasing efficiency.
Precision: Robots with AI capabilities can perform tasks with high precision, which is crucial in fields like surgery and manufacturing.
Scalability: Robotics solutions can be scaled up or down easily, making them versatile for different operational needs.
Top Companies
UiPath, Inc. (NYSE: PATH): Known for its robotic process automation (RPA) solutions, which automate business processes using AI.
Teradyne, Inc. (NASDAQ: TER): Develops collaborative robots (cobots) that enhance automation in manufacturing.
Symbotic (SYM) – Specializing in AI-driven robotic automation for warehouse and supply chain industries, Symbotic’s revenue surged by 79% year-over-year, showing remarkable growth in 2024.
Richtech Robotics (NASDAQ: RR) is a Nevada-based company specializing in collaborative robotic solutions, primarily targeting the service and healthcare sectors. The company’s flagship product, ADAM, is an advanced AI-driven service robot that performs a variety of tasks, including beverage service in hospitality and food service settings. ADAM’s advanced AI enables it to execute complex tasks with human-like precision, making it adaptable across multiple industries such as bars, cafes, and stadiums.
Serve Robotics Inc. (NASDAQ: SERV): Known for its innovative autonomous delivery solutions, Serve Robotics focuses on developing robots that facilitate last-mile deliveries, leveraging cutting-edge AI and robotics technology to optimize efficiency and safety in urban environments.
Backed by Uber and NVIDIA, Serve Robotics develops advanced, AI-powered, low-emissions sidewalk delivery robots that endeavor to make delivery sustainable and economical. Spun off from Uber in 2021 as an independent company, Serve has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven. Serve has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets.
Comparative Analysis
Quantum Computing
Potential: Quantum computing holds immense potential to revolutionize AI by solving problems that classical computers cannot. However, it is still in its early stages, with many technical challenges to overcome.
Market Readiness: The commercial adoption of quantum computing is progressing, but widespread use may take several more years.
Robotics
Current Impact: AI-driven robotics is already significantly impacting industries by automating processes and improving efficiency. The technology is more mature and commercially viable.
Immediate Benefits: Robotics offers immediate advantages in terms of cost savings, productivity, and precision, making it a more attractive investment in the short term.
Robotics vs. Quantum Computing
Conclusion
While both quantum computing and robotics stand to benefit from the AI revolution, robotics may offer more immediate and tangible benefits due to its current state of maturity and market readiness. Traders looking for growth opportunities under $15 per share may want to consider the companies mentioned below which are well-positioned to capitalize on advancements in AI.
Promising AI Growth Companies Under $15/Share as of Market Close July 19th, 2024
Rekor Systems Inc. (NASDAQ: REKR): Provides AI-driven roadway intelligence solutions, currently trading at approximately $1.68/share.
SoundHound AI, Inc. (NASDAQ: SOUN): Specializes in voice AI and conversational intelligence technology, providing voice-enabled solutions across various industries $4.93/share.
Mitek Systems, Inc. (NASDAQ: MITK): Mitek specializes in digital identity verification and mobile image processing, leveraging AI to enhance security and prevent fraud. Their technology is increasingly vital as more business moves online, making it a strong contender in the AI space $12.10/share.
Domo, Inc. (NASDAQ: DOMO): Domo focuses on business intelligence tools and data visualization, utilizing AI to manage and enhance machine learning models. Their tools offer capabilities such as generative AI and natural language processing, positioning them well for future growth in AI-driven business solutions $7.90/share.
Serve Robotics Inc. (NASDAQ: SERV): Known for its innovative autonomous delivery solutions, Serve Robotics focuses on developing robots that facilitate last-mile deliveries, leveraging cutting-edge AI and robotics technology to optimize efficiency and safety in urban environments $7.55/share.
Lumen Technologies, Inc. (NYSE: LUMN): Provides advanced network, cloud, and cybersecurity solutions, with a growing focus on AI and edge computing, currently trading at $1.38/share.
CXApp, Inc. (NASDAQ: CXAI): Focuses on workplace AI-driven applications, offering AI-enabled employee experience solutions that enhance hybrid work environments, trading around $2.17/share.
Additions Below – Share Prices as of August 20th, 2024
Nerdy Inc. (NRDY) – Operating in the education sector, Nerdy has leveraged AI to expand its online learning services. Trading at about $5.67, the company has been growing rapidly with a market cap of over $700 million, trading at $1.04/share.
UiPath (PATH) – Specializing in AI-driven automation, UiPath offers tools to streamline manual business processes. The company continues to show potential for strong revenue growth. Over $1.3b in annual revenue and a recent 15.7% increase in quarter over quarter revenue. Tading at $12.09/share.
Veritone Inc. (NASDAQ: VERI)
Price: Approximately $3.75 per share
Sector: AI operating systems for media, legal, and government sectors
Why It Stands Out:
Veritone offers aiWARE, an AI-driven operating system that helps organizations manage, search, and analyze large volumes of audio and video content. This platform is especially valuable in industries like media, where AI is used to analyze broadcast content for advertising and legal compliance. Veritone’s focus on helping clients leverage AI to optimize content management and legal procedures gives it a solid niche in the market. Despite volatility, its innovative approach makes it a noteworthy AI stock under $15.
September 5th, 2024 Addition
Applied Digital Corporation (NASDAQ: APLD), a leading innovator in high-performance computing (HPC) and AI infrastructure, has recently secured a major $160 million funding round, with high-profile investors like Nvidia and Related Companies. This strategic investment is set to significantly accelerate Applied Digital’s expansion plans and help it scale up its infrastructure to meet the surging demand for AI-driven cloud computing services.
Price: $4.80/share – a/o 8:45 AM Eastern 09/05/2024
Nvidia’s Role in the Investment
Nvidia’s involvement in this funding round is not just financial. It’s a powerful endorsement of Applied Digital’s business model and technology. Nvidia, a global leader in AI chips, is a key player in driving AI’s explosive growth. Applied Digital, as a Preferred Nvidia Cloud Partner, has been working closely with Nvidia to provide advanced computing solutions for AI workloads. This partnership is central to both companies’ strategies: Nvidia secures a pathway to expand its cutting-edge GPUs, while Applied Digital gains the resources to build and enhance its infrastructure.
The $160 million investment, raised via a private placement at a market price of $3.24 per share, is designed to bolster Applied Digital’s already ambitious projects. These include the construction of one of the world’s largest data centers and the addition of 300 MW of new data center capacity. This will enable Applied Digital to handle the most demanding AI and HPC applications, delivering scalable cloud services optimized for Nvidia’s hardware. For more information on this deal see our full article.
Promising AI Enterprises Over $15/Share as of Market Close July 19th, 2024
Innodata Inc. (NASDAQ: INOD): Specializes in AI and machine learning solutions for digital content and services, trading around $17.65/share.
C3.ai, Inc. (NYSE: AI): A leader in enterprise AI software applications, C3.ai develops scalable AI solutions for a variety of industries, currently trading at $27.83/share.
Palantir Technologies (PLTR) – Known for its AI-driven big data analytics, Palantir has shown consistent revenue growth, driven by major contracts with government and private sector clients. Trading at $28.58/share.
Additions Below – Share Prices as of August 20th, 2024
Symbotic (SYM) – Specializing in AI-driven robotic automation for warehouse and supply chain industries, Symbotic’s revenue surged by 79% year-over-year, showing remarkable growth in 2024. Trading at $23.87/share.
Biotech
Biotech Companies at the Forefront of Utilizing AI
This sector is finally getting some recognition for being an AI beneficiary. I have been talking about the massive potential benefits with AI’s utilization in the biotech space for well over a year now.
Recursion Pharmaceuticals (RXRX): Recursion Pharmaceuticals leverages advanced AI and machine learning to accelerate drug discovery and development. The company’s proprietary platform integrates biological and chemical data to uncover novel therapeutic candidates for various diseases. $7.61/share as of market close July 19th, 2024.
Potential Upcoming Catalysts
Recursion Pharmaceuticals has several clinical trials in progress, but no FDA decisions are specifically scheduled for the 3rd or 4th quarter of 2024 based on the latest information available. However, the company has provided guidance on expected readouts from multiple clinical programs over the next 18 months, as mentioned in their latest news releases.
Key Technologies:
AI-driven drug discovery platform
High-content screening capabilities
Integrated biological datasets
Conclusion
Recursion Pharmaceuticals is at the forefront of leveraging AI to advance drug discovery and development. Despite not having imminent FDA decisions necessarily in the next two quarters, the company’s innovative approach and pipeline look promising.
For the most current and detailed information, please refer to Recursion Pharmaceuticals’ official Pipeline page and other announcements.
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