The AI market is more prominent than ever and shows no signs of slowing down. The largest companies in the world are making significant investments in their AI departments keep pace. However, some investors might have trouble overcoming the initial hurdle of price that the larger companies’ stocks hold.
The good news is you can still capitalize on this booming industry without making high initial buys. These three cheap AI stocks are teeming with growth and future development. With their undervalued prices, you can easily get on board and enjoy the profits this year.
Let’s explore the exciting features these AI stocks bring to the table that make them attractive buys, with current prices almost too good to be true.
Rekor Systems Incorporated (REKR)
With optimistic earnings outlooks, Rekor Systems Incorporated (NASDAQ:REKR) shows excellent poise for positive near-term movement in stock price. At 2023’s fiscal end, Rekor showcased a year-over-year (YOY) difference of nearly 60% in EPS, climbing up to -$0.68.
In addition to these changing expectations in earnings and consequent reevaluations, REKR started 2024 with exciting developments. Rekor Systems Incorporated specializes in real-time roadway solutions.
Starting this year, its traffic services division signed an exciting contract with Gwinnett County, Georgia. With this deal, REKR establisheS itself as a provider of data collection and roadway intelligence.
However, the company’s new developments don’t stop there. A week or so later, its Discover platform was chosen by the New Mexico Department of Transportation. It will utilize REKR’s advanced AI to collect car count and speed data for the highway administration.
The stock is priced well and has excellent prospects with improved earning forecasts and new deals entailing expansion and growth for this year.
Synaptics Incorporated (SYNA)
Synaptics Incorporated (NASDAQ:SYNA) poses one of the greatest potentials for huge long-term returns from any AI stock. The stock currently sits at around $106. But, if it continues on its current trend of impressive growth, Synaptics Incorporated could reach nearly $130 in the next couple of months.
Already, SYNA sets the standard for this year by blowing through revenue and EPS estimates with their Q2 earnings at the beginning of February. This year’s projected price increase makes a tempting buy for investors who want to see more immediate profit.
Prices and earnings per share are projected to increase with the growing demand for AI integration into device interfaces worldwide. This stock is priced reasonably and makes a great buy to start this March.
Symbotic (SYM)
Symbotic (NASDAQ:SYM) is an AI warehouse software provider that also develops robots to automate the warehouse management process completely. As of last year, Symbotic’s largest customer is none other than Walmart. The superstore is responsible for nearly 90% of the company’s reported $1.339 billion in revenue.
Interested buyers will be happy to hear that Symbotic’s AI warehouse technology is hot, in demand and showing signs of continued growth. Another big-time customer that employs Symbotic’s AI is the 6th largest retailer in the world, Target. If that’s not enough to show you this AI stock’s growing presence, it’s the latest venture just might.
Last year, Symbotic established a joint venture with SoftBank, a multinational investment holdings company, in a 7.5 billion dollar contract. This venture establishes Greenbox, a module service loaded with Symbotic’s AI.
Greenbox is part of the fully AI-integrated supply chain revolution Symbotic seeks to start and expects to generate countless millions in revenue.
At its current price of around $41, Symbotic falls on the cheaper end of AI stocks yet outranks almost all others in revenue growth at 98% YOY. With this great price and continued forecast of tremendous growth, there’s no better time to buy and watch the profits come in.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
