Stocks of penny stock Artificial Intelligence Technology Solutions (OTCMKTS:AITX) stock has been gaining momentum over the past week with a gain of about 45% on increased volume.
The movement is driven by several factors including picking up of Risk-on sentiment in the market today. Broadly, the indices are trading higher as concerns on high-interest rates as well as Fed tapering have been brushed aside with investors looking at a brighter future ahead of the pandemic.
Hypergrowth segments such as robotics as well as AI are key areas for growth investors even though AITX continues to be a micro-cap play in the space. With a market capitalization of just $157 million after the surge, investors may consider some facts before plunging into the stock.
Focusing on robotics and AI solutions for customers, AITX gives frontend and backend software solutions for systems. Producing stationary workflow solutions, the RAD divisions help in streamlining organizational processes for amplifying the productivity of customers. Additionally, its RAD-M division gives mobile workflow automation services while its RAD-G division gives autonomous remote services. The RAD-G is also the high-growth division for the firm. With the company signing a partnership agreement with Ghost Robotics, investors seem to be sanguine about the growth prospects of the speculative stock.