Enjoying another eventful day in the market, Guardforce AI (NASDAQ:GFAI) — an integrated security provider specializing in secured logistics — is attracting significant interest today. This comes after the company inked a partnership with Concorde Security. Together, the two enterprises will launch a “new robotic security solution” in Singapore. GFAI stock is popping up more than 70% as of this writing.
According to the accompanying press release, Guardforce — which also focuses on artificial intelligence (AI) and Robot-as-a-Service (RaaS) solutions — will equip its concierge robot with an “access control module for a visitor management system, a digital system companies employ to register and track each guest entering their facilities.”
In addition, Guardforce’s disinfection robot will be retrofitted and equipped with Concorde’s software security system, which will provide automated patrol surveillance. During patrols, the system will also upload “live security footage to the cloud platform for 24/7 security surveillance and retrieval.”
This partnership will mainly target hotels and other industries that may benefit from convenient and efficient automation services. Concorde is also seeking to increase its offerings with delivery robots for hospitals and other markets.
GFAI Stock Is Both Relevant and Extraordinarily Risky
Fundamentally, GFAI stock benefits from a relevant and burgeoning market. With AI protocols rapidly expanding in scope and scale, the marriage between digital intelligence and advanced mechanics is poised to replace human workers in certain service sector roles. At the same time, Guardforce itself is an awfully risky enterprise that requires careful due diligence.
On the positive side, Research Dive notes that the global hospitality robots market reached a valuation of $281.5 million in 2020. However, experts project that the sector will hit over $1.71 billion by 2028, representing a compound annual growth rate (CAGR) of 25.7%. For context, GFAI stock carries a market capitalization of only $45 million as of this writing.
Unsurprisingly, Lei Wang, Guardforce Chairwoman and CEO, is positive about the agreement with Concorde:
“We are excited to partner with Concorde to jointly market robotic solutions that implement the latest AI technology in the security industry. Singapore is a highly interconnected market with stringent security standards, providing the perfect environment to roll out the proof of concept for robotic security solutions. The prototype is in the testing phase now, and we’re targeting to launch it in the fourth quarter of 2023.”
Nevertheless, GFAI stock remains a fairly speculative bet. With a 52-week range between $3.81 and $36.90 per share, the stock finds itself up about 10% so far this year. Since its public market debut, shares have fallen around 95%.
Why It Matters
Currently, only one analyst covers GFAI stock on TipRanks. However, two months ago, the analyst gave shares a “buy” rating and a $14 price target. That forecast implies more than 95% upside potential from current levels.
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On the date of publication, Josh Enomoto 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.
