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Valued at just $17.09 million by market cap, Singapore-based Guardforce AI Co. (GFAI) is an integrated security solutions provider that specializes in leveraging artificial intelligence (AI) and robotics to help enhance operational efficiencies, primarily for businesses in the retail and travel industries in the Asia-Pacific region.
Is GFAI Stock a Good Buy?
The stock trades below $2 per share, placing it firmly in penny stock territory - which means GFAI has the potential to deliver outsized gains for investors over the long term, though it also carries heightened risks. Notably, Guardforce AI is not profitable; despite reporting record revenue of $36.3 million in fiscal year 2023, the company also posted a wider full-year loss of $29.6 million.
GFAI stock is also volatile, and has underperformed in 2024. The stock is down 53.3% on a year-to-date basis, significantly lagging the broader equities market. Longer term, the shares are down 98% from their 2022 highs.
However, since setting a new 52-week low of $1.00 in November, GFAI has bounced back by 55%.
Guardforce Inks a New Deal
Last week, Guardforce AI announced a new deal with Massachusetts-based Librum Technologies for a “partnership focuses on developing cutting-edge AI agents.” The agents are intended to provided tailored, AI-based purchasing and travel solutions to users. Librum’s exclusive technology allows GFAI to optimize computational outcomes by combining multiple AI models to ensure accurate and context-conscious answers.
“The enhanced AI agents have completed the initial proof-of-concept phase and continue to evolve, demonstrating strong potential across a wide range of applications. From enhancing customer engagement to streamlining operations, these advancements underline the versatility of our AI technology,” said Guardforce CEO Olivia Wang. "This collaboration accelerates our progress toward realizing our vision of vertical AI applications that enhance operational efficiency and deliver measurable value for our clients."
GFAI Reports H1 Results
Previously, during GFAI's H12024 earnings release, Wang had commented that “Our primary focus is developing GFAI Agents, which serve as the key technological backbone for our AI-driven travel and purchase solutions.”
That report showed net revenue decreasing by approximately 2.4% year-over-year to $0.4 million for the first half of 2024, largely due to currency fluctuations. On an adjusted basis, net income reached $0.1 million, up from a net loss of $1.8 million in the year-ago period, while the operating loss narrowed significantly to $2.1 million from $11.9 million.
SG&A expenses declined 25.7% year-over-year to $5.0 million. GFAI ended the period with a cash balance of $15.5 million.
What's the Wall Street Forecast for GFAI?
So far, there is only one analyst providing coverage on the AI stock. That said, the outlook is bullish, with a “Strong Buy” rating and a price target of $4.50 - signifying potential upside of 184.8% from current prices.
