The artificial intelligence (AI) world received an exciting update this week. GuardForce AI (NASDAQ:GFAI) announced that it has closed an acquisition agreement with the Shenzhen Kewei Robot Technology Company.
According to a statement released by GuardForce on Wednesday, it has acquired certain parts of Kewei’s robotics business. This includes the “rights to the permanent use of its patents,” as well as certain equipment and sales pipeline clients.
GFAI stock has been falling since markets opened. However, that doesn’t mean that investors should be worried. The market initially reacted well to news of the acquisition. And today, GFAI stock rose 21% in pre-market trading, making it one of the morning’s top movers.
Since markets opened, shares have fallen almost 3%, but the stock’s current trajectory hints that it may pull back into the green soon. Let’s take a closer look at this news and what GuardForce investors can expect as markets move forward.
What This Means for GFAI Stock
Since the November 2022 launch of ChatGPT, AI has been the talk of Wall Street. This momentum quickly propelled GFAI stock out of the penny stock category. Despite losing some of its previous momentum, it is still up 58% for the month. What isn’t slowing down is AI enthusiasm among investors. Even announcing a 40-for-1 reverse stock split hasn’t posed too much of an impact on the company or its stock.
Now, the company is expanding its robotics division, reminding investors that it is focused on growth. These deals serve as a good indicator that GFAI is a good bet for investors seeking exposure to the booming AI market. As GuardForce chairwoman and CEO Olivia Wang states:
“With an expanded global footprint and growing AI resources, we look forward to further expanding our RaaS solutions such as AIoT robot advertising, AI-based support for hotels, and other uses of AI services, especially within the tourism industry where we are witnessing rapid growth in demand.”
GuardForce has quickly emerged as a breakout AI innovator that has no intention of slowing down. Investors should count it among the best AI stocks to buy, especially as it still trades at a relatively low price point and operates in a fast-growing market.
On the date of publication, Samuel O’Brient 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.