The NASDAQ index led the market out of technical bear market territory. And if the rally is going to have legs, investors will know they have artificial intelligence (AI) to thank for it. While large-cap companies like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) are safe bets as the AI bubble inflates, now is a time for risk-tolerant investors to think about the best tech-based penny stocks.
AI already plays a prominent role in many aspects of our life. And the market will only be getting bigger. According to Grand View Research the AI market, which was valued at $136.55 billion last year, will grow at a compound annual growth rate (CAGR) of 37.3% between now and 2030. Inevitably, some of that growth will come from little-known stocks that will offer high-potential, even game changing technology.
That’s why now is the time for you to begin looking at penny stocks with innovative tech. Here are three candidates for your consideration.
Predictive Oncology (POAI)
Predictive Oncology (NASDAQ:POAI) is the first of the best tech-based penny stocks to consider. Cancer research has come a long way and yet it still has so far to go. That’s one reason the Biden administration has called for a “cancer moonshot.” That makes now a good time to consider high-potential penny tech stocks that focus on oncology.
Predictive Oncology uses its proprietary, AI-driven platform named PeDAL to increase the speed at which oncology drugs can get to market. The company has “the largest privately held biobank of more than 150,000 tumor samples.” Using AI, the company can efficiently screen the way different compounds and molecules interact with the samples to create predictive models of tumor drug response.
POAI stock is down more than 60% in the last 12 months. But the movement has not been straight down. This is a volatile stock that on several occasions in the past year has seen its shares climb over $10.
But if you’re going to get involved be aware this stock is almost exclusively in the hands of retail investors. Institutional investors only own about 6% of the company’s stock. Predictive Oncology is not yet profitable and generates little revenue. But for risk-tolerant investors, POAI stock is one for your watch list.
The Oncology Institute (TOI)
The Oncology Institute, Inc. (NASDAQ:TOI) is another stock that is focused on finding a cure for cancer. The company has a “value-based oncology care” model that has a large addressable market. By itself, the company wouldn’t make a list of game-changing penny stocks. However, what makes TOI stock a compelling choice is a recently announced partnership.
The company has teamed up with Massive Bio, an AI firm. The Oncology Institute operates a business unit focused on clinical trials. With Massive Bio’s assistance, the company aims to identify the best candidates for its active clinical trials.
Few analysts cover the stock. However, institutional investors own over 70% of the company’s shares. Most notably, these investors made the largest purchases in the fourth quarter of 2021. Many of them have retained their shares.
This isn’t likely a coincidence. It’s a compelling reason to consider adding TOI stock to your speculative portfolio, especially with the stock’s 21% rise over the past month.
Alpha Metaverse Technologies (APETF)
The last of the best tech-based penny stocks is also the one that may carry the highest risk-reward dynamic. Alpha Metaverse Technologies (OTCMKTS:APETF) is an over-the-counter stock. That means it’s not available to many retail investors. But now may be a time to put this one on your watch list, and here’s why.
Alpha Metaverse has a “revenue-focused portfolio of gaming assets with low operating costs and high growth potential.” The company only went public in 2021 and, to be fair, it’s almost been completely downhill for investors. But some of this negative sentiment seems to have less to do with APETF stock and more to do with a souring on anything having to do with the “metaverse.”
But Alpha Metaverse is operating in the emerging areas of esports and online betting. And in March the company announced a major contract to “build a metaverse experience for a multinational category leading brand.” The company says it will be a way to showcase the company’s AI capabilities while taking consumer engagement to a new level.
On the date of publication, Chris Markoch 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.