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3 AI Powerhouses Predicted to Soar 500% in the Next Tech Boom

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In the rapid-tech space, innovation is an opportunity. The article lists three AI powerhouses that are breeding an unprecedented surge. These companies are the AI powerhouses of industry.

As the world reaches a new age of AI, these companies are creating to ride the waves through technological advancements. Their strategies are based on the nexus of AI and related industry evolutions. Here, strategic acquisitions, operational edge, and groundbreaking technologies converge to bring in massive price returns.

Read the article to learn the fundamentals propelling these companies toward a five-times surge in the next tech boom. The first one has a visionary expansion into vision AI. The second one has a stronghold on digital identity solutions. Finally, the third one has made groundbreaking strides in AI-driven drug development. These companies lay the foundation for exponential value growth.

BigBear.ai (BBAI)

AI stocks to buy now, Graphic of letters

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BigBear.ai (NYSE:BBAI) has strategically moved to acquire Pangiam, suggesting a progressive expansion of its Vision AI portfolio. This may position the company at the edge in the rapidly growing categories for the utility of AI. This strategic acquisition enhances the company’s competitive edge and growth potential in the rapidly evolving AI market.

The merger with Pangiam will also enable BigBear.ai to establish one of the industry’s most comprehensive vision AI portfolios. This combines Pangiam’s expertise in facial recognition and advanced biometrics with BigBear.ai’s computer vision capabilities. Integrating complementary technologies may lead to solutions to capture the emerging demand for vision AI across various industries.

Despite the decline in revenue, BigBear.ai managed to maintain a gross margin of 24.7% in Q3 2023. highlighting the company’s capability to optimize its cost structure. This leads to preserving profitability even in the face of revenue fluctuations.

In detail, BigBear.ai’s efforts have reduced selling, general, and administrative expenses by 8% quarter-over-quarter and 23% year-over-year. This reflects a focus on cost efficiency and operational edge. These cost-reduction initiatives have improved the company’s performance and bottom line. 

Finally, there is a shift toward a positive bottom line (net income) of $4 million in Q3 2023 from negative profitability (loss of $16.1 million in Q3 2022). This reflects BigBear.ai’s rapid turnaround at the bottom line. Also, the company has solid liquidity with cash of more than $32 million (around 9% of its market cap), and the company can currently generate $6.6 million in cash from operations. Therefore, this improved cash generation capability supports the potential for valuation expansion.

Mitek (MITK)

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Mitek’s (NASDAQ:MITK) leverages AI to create pioneering software solutions for image recognition and identity verification, significantly impacting various industries.

The company’s customer retention and operational edge support its value-growth potential. Mitek’s Net Revenue Retention (NRR) rate of more than 120% (Q3 2023) suggests solid customer retention and expansion. This reflects the company’s capability to retain existing customers by upselling additional offerings. Hence, the value delivered by Mitek’s solutions focuses on long-term customer loyalty, fostering sustainable topline growth.

Additionally, the considerable reduction in customer check fraud losses suggests Mitek’s focus on addressing critical pain points and delivering tangible results. At the bottom line, Mitek attained a total gross margin of 87% in Q3, demonstrating a 2% year-over-year improvement. Strong gross margins, particularly in software and hardware, indicate an operational edge and cost-effective product delivery. Through these edges, the company has developed the capability to maintain high margins.

Fundamentally, the company’s direct sales moves target progressive market verticals. It includes financial services, insurance, telecommunications, healthcare, and marketplaces. By catering to diverse verticals, Mitek expands its market reach and diversifies its revenue streams. Additionally, there are partnerships with industry leads such as Experian (OTCQX:EXPGF), DocuSign (NASDAQ:DOCU), and Equifax (NYSE:EFX), further extending Mitek’s market. 

Finally, Mitek’s outlook for 2023 goes beyond remaining positive. There are expectations of sustained topline growth and considerable margin expansion. The company has a strong market edge, diverse portfolio, and strategic partnerships. These factors position the company to capitalize on emerging digital identity and fraud prevention trends. Therefore, as digital transactions evolve, Mitek may derive solid potential for valuation expansion.

Lantern Pharma (LTRN)

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Source: shutterstock.com/Victor Runov

Lantern Pharma (NASDAQ:LTRN) has attained a vital milestone by advancing all its clinical-stage drug candidates into human clinical trials. This suggests the company’s capability to progress swiftly through the drug development pipeline. In detail, the company currently has two candidates in Phase 1 trials (LP-184 and LP-284) and one in Phase II. The aggressive progression reflects the edge of Lantern Pharma’s drug development process. This factor is setting a solid foundation for rapid value growth potential.

As of Q3 2023, Lantern Pharma has launched LP-184 into a Phase I clinical trial for recurrent advanced solid tumors. Similarly, LP-284 has also been launched into a clinical trial for recurrent non-Hodgkin’s lymphomas and sarcomas. Meanwhile, the LP-184 Phase I trial has commenced dosing the initial patient. Thus, the rapid advancement of drug candidates into clinical trials indicates efficient preclinical development. This suggests the company’s scientific edge and capability to transmit research into actionable clinical programs rapidly.

Having multiple candidates in different phases of clinical trials diversifies Lantern Pharma’s portfolio. Also, this spreads risk and boosts the potential for positive outcomes. The company addresses critical unmet medical demands, such as refractory solid tumors and non-Hodgkin’s lymphomas. This suggests Lantern Pharma’s focus on targeting areas of high medical necessity. Hence, this may lead to a significant market share gain based on drug approvals.

Finally, Lantern Pharma applied its AI platform (RADR) to speed up drug discovery and development processes. In detail, integrating AI and machine learning algorithms has led the company to accelerate the identification of promising drug candidates. This shortens the time and cost of bringing therapies to market. Overall, this strategic utilization of AI boosts Lantern Pharma’s edge and positions it as a vital institution in AI-driven drug development.

On the date of publication, Yiannis Zourmpanos did not hold (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.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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