The development of artificial intelligence (AI) has many investors giddy about its potential across a wide variety of industries. However, there are others that fear the ramifications of its development. We are already seeing the disruptive power that automation and AI development has on labour markets. Indeed, even the Hollywood writer’s strike has the use of AI chatbots as one of the key points of contention.
Today, I want to zero-in on two micro-cap stocks that offers exposure to AI development. Fortune Business Insights recently valued the global AI market at US$428 billion in 2022. The same report projected that this market would grow to US$2.02 trillion by 2030. That would represent a compound annual growth rate (CAGR) of 21% over the forecast period.
Gatekeeper Systems (TSXV:GSI) is a British Columbia-based company that designs, manufactures, markets, and sells video security solutions for mobile and extreme environments in North America. Its shares have climbed 16% so far in 2023. In the second quarter (Q2) of fiscal 2023, this company delivered amazing revenue growth of 212% to $9.7 million. Moreover, total comprehensive income shot up to $1.86 million compared to a loss of $666,208 in Q2 2022.
DataMetrex AI (TSXV:DM) is a Toronto-based company that provides collecting, analyzing, and presenting structured and unstructured data using its patented machine learning and AI in Canada and South Korea. Shares of DataMetrex have dropped 7.1% in the year-to-date period. In fiscal 2022, the company reported AI and technology revenue of $4.57 million – up 13% compared to fiscal 2021. However, broader revenues were down 38% compared to the previous year.
