Investing

2 AI Stocks Wall Street Expects to Return Up to 809% in 2024

Trey Thoelcke

Published: March 21, 2024 9:55 am

Enthusiasm over the prospects for artificial intelligence (AI) continues to be a significant driver for a plethora of stocks, including some of the so-called Magnificent Seven. Investors who have been cautious about what could have been a fad, or those who are simply late to the party, may be wondering whether it is too late now to enter the fray. Have all the profits in AI stocks been made?

There may still be opportunities to be found. Take for example Synaptics Inc. (NASDAQ: SYNA) and Knightscope Inc. (NASDAQ: KSCP). Both stocks are off 14% or more so far this year, and yet analysts anticipate strong rebounds for both of them in the next 12 months. So what’s up here? Let’s have a look.

Synaptics

This San Jose-based company is a developer of human interface hardware and software, such as touchpads, biometrics technology, and video and voice technology, that enable people to interact with mobile computing, communications, entertainment, and other electronic devices. Synaptics says its solutions are designed with AI as a core tenet.

Note that the company has been expanding its footprint in India, and it recently saw the departure of its chief financial officer.

Shares are down about 14% year to date and are much lower than their all-time high near $300. The analyst’s consensus price target would be a 52-week high, and hitting the high price target of $135 would be a gain of over 37% for the stock. However, on average, analysts have a cautious buy recommendation.

Knightscope

This innovator in robotics and artificial intelligence technologies is focused on public safety. It designs, develops, manufactures, markets, deploys, and supports autonomous security robots in the United States. And it serves universities, municipalities, corporations, casinos, property management companies, the U.S. federal government, and others.

The company recently announced a deal that will bring more drones into its portfolio of products and services. It also recently had some turnover in its board of directors. (Check out some other artificial intelligence stocks under $10.)

This penny stock is changing hands for almost 26% less than at the beginning of the year. It is well off its initial public offering price of $10 per share. Just one analyst has a price target, but that target would be 78.6% higher than the 52-week high.