While some of the hype tied to artificial intelligence may not be sustainable, digital transformation technology specialist Iveda Solutions (NASDAQ:IVDA) could offer a more practical bet. IVDA stock appears to be printing a compelling bullish pattern in the charts. Therefore, it could be a short-term scalp or in my opinion a long-term investment.
Iveda’s deep-learning video analytics software — or facial recognition tech — could have practically endless applications. Per the company’s public profile, Iveda currently serves airports, commercial buildings, government customers, data centers, shopping complexes, hotels and banks. With so much attention focused on digital intelligence, IVDA stock seems ready to explode higher.
Compelling Backdrop Augments Confidence
One analyst covers IVDA stock, Maxim Group’s Allen Klee. The expert rates shares a “buy” with a $1.50 price target, implying 82% upside potential. Further, Yahoo Finance reports that Klee projects fiscal 2024 revenue to hit $20 million. If so, that would represent a 207.9% increase from last year’s tally of $6.5 million.
Moreover, in fiscal 2025, the analyst is looking for sales of $38.04 million, a rise of 90.2% from fiscal 2024’s projected revenue. Granted, it’s difficult to place maximum confidence on one person’s projections. However, the broader industry data suggests that these figures are not unreasonable.
According to Grand View Research, the global facial recognition market size reached a valuation of $5.15 billion in 2022. Experts project that the sector could expand at a compound annual growth rate (CAGR) of 14.9% from 2023 to 2030. By 2030, the industry could be worth $15.84 billion.
Notably, IVDA stock currently carries a market capitalization of only $12.97 million. Risky? Undeniably so. However, the profound implications of facial recognition in terms of campus security and law enforcement makes Iveda an attractive idea that very few are paying attention to.
Trade of the Day: Buy IVDA Stock in the Open Market
For the trade of the day, the narrative is straightforward: Buy IVDA stock in the open market. Currently, IVDA does not have an underlying derivatives market so you can’t buy call options on it.
Of course, buying a literal penny stock that’s also a nano-cap play compounds the risk quotient. To repeat, this is a speculative idea that requires careful thought and rigorous due diligence. However, what’s really appealing from a short-term perspective is the bullish pennant formation.
From early February to now, IVDA stock essentially entered into a consolidation pattern of lower highs and higher lows. Overall, the price action resembles a triangle, with the bulls and bears currently negotiating in a tight range. To me, this suggests a breakout is imminent.
Yes, it’s a penny stock, yes it’s highly risky. Yet the practical AI component is, in my humble opinion, incredibly enticing.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Josh Enomoto held a LONG position in IVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
