15th March 2024: We have seen AI stocks rising over 35% since the start of the year. This makes them a great choice to add to your portfolio.
Saqib Iqbal, a financial analyst at Trading.Biz, has found one particular AI penny stock that is undervalued by 86% and has a chance of rising 100% in one month.
AI stocks have jumped 35% since the start of the year, making them attractive for portfolio addition.
MicroCloud Hologram (NASDAQ: HOLO) is undervalued by 86%, with the potential to rise by 100% in a month.
The company shows impressive growth in fundamentals, including a 28.8% year-over-year increase in revenue.
He says, “There are several undervalued AI penny stocks that are ideal for portfolios. One such stock is MicroCloud Hologram (NASDAQ: HOLO). The company’s stock has risen significantly as NVIDIA (NASDAQ: NVDA) has rallied. I am certain that HOLO has the potential to become a multi-bagger for individuals with the appropriate risk tolerance.”
MicroCloud Hologram Inc. is a Chinese company that provides holographic digitization services. There are several products it is developing, including holographic advanced driver assistance systems (ADAS) and holographic digital twins.
Furthermore, the company announced in September 2023 that it would introduce a virtual holographic human using the ChatGPT pre-training model. Like the AI showed in Blade Runner 2049, this product has not yet been developed.
A key feature of HOLO is that its fundamentals are showing impressive growth, including revenue, which increased 28.8% year-over-year.
When we look at HOLO’s stock, the company is down by more than 70% and is undervalued by 86%, which makes it a perfect buy, according to Saqib.
Fun fact: On Feb 16, after gaining NASDAQ’s requirements, the stock jumped by more than 200% in a single session.
HOLO Technical Analysis: Looking to Regain
HOLO recently traded at a high of 98.40 on February 16 but has moved significantly downwards since then.
On the daily chart, the stock broke its support level trading below 7. The next immediate resistance lies at 24.60, the level it reached on February 21. This is an increase of more than 300% from the current levels.
In the long run, if the AI rally continues driving the market, then HOLO can regain some of its previous losses and trade above 50. This makes it a perfect short-term and long-term stock.