If you’ve been on the sidelines with artificial intelligence stocks, the recent pullbacks are handing investors another opportunity to buy. That includes the likes of Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Advanced Micro Devices (NASDAQ:AMD), Palantir (NYSE:PLTR) and dozens more, even in AI penny stocks. All of which could easily rally back on the AI boom.
Or, if you don’t want to spend too much capital on an AI stock of that stature, the pullbacks in AI penny stocks are also just as attractive. Ultimately, the choice is yours. However, I’d take full advantage. Morgan Stanley believes the AI opportunity could be worth $6 trillion by 2030. Goldman Sachs says it could be worth $7 trillion by then. Even Cathie Wood’s Ark Investment believes AI companies could see $14 trillion of revenue by 2030.
In short, we could be looking at some massive opportunities. Not only would I take full advantage of the pullbacks in heavyweight AI stocks, but I’d also take advantage of the recent drops in top AI penny stocks, too. In fact, here are three I’d buy and hold today.
AI Penny Stocks: Lantern Pharma (LTRN)
Throughout the last few weeks, every time I discuss potentially explosive AI opportunities, I mention Lantern Pharma(NASDAQ:LTRN). That’s because the very idea of using artificial intelligence with drug development could be a game-changer with the potential to uncover treatments for issues we never thought were treatable, such as cancers.
Even “Morgan Stanley believes that AI-powered drug discovery will lead to an additional 50 novel therapies being brought to market over the next decade, with annual sales in excess of $50 billion,” as noted by InvestorPlace contributor Luke Lango.
Even better, the company just received a “notice of allowance” from the United States Patent and Trademark Office (USPTO) covering a method of treatment for Atypical Teratoid Rhabdoid Tumor (ATRT), an aggressive form of cancer of the central nervous system (CNS), using its LP-184 treatment.
SoundHound AI (SOUN)
Another top AI stock to consider is SoundHound AI (NASDAQ:SOUN). While the stock took a dive from about $5.25 to $1.86, there’s still a good deal of opportunity here. For one, it’s now technically oversold and is starting to pivot higher. In fact, from its current price of $2.40, I’d like to see it initially refill its bearish gap around $3 shortly.
Two, this is one of the top leaders in voice and audio recognition and allows for hands-free control of devices in homes and cars. In fact, with that technology, It already nabbed major deals with Hyundai, Mercedes-Benz, Kia and Vizio to name a few. Three, company earnings have been strong. Q2 revenue, for example, jumped about 42% year over year to $8.8 million, which was better than forecasts for $8.1 million.
Wedbush analyst Dan Ives likes the stock, too. With an outperform rating and a $7 price target, he believes SOUN is well-positioned to capitalize on the demand for AI chatbots.
Since topping out around $6.77, BigBear.AI (NYSE:BBAI) plummeted to $1.50, where it’s slowly showing signs of life. The company, which delivers AI-powered analytics and cyber engineering solutions to the U.S. Army, the Defense Intelligence Agency, the U.S. Air Force and numerous other logistics and shipping companies, could race even higher in the near term.
Helping, the U.S. Army just chose BBAI to modernize its ATEC Integrated Mission Management System (AIMMS). It’s worth more than $7.7 million. It also received an extension for its work on the U.S. Army’s Global Force Information Management (GFIM) Objective Environment (OE) system. This one is worth about $8.5 million.
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On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.