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Over the last two years, Big Tech companies such as Nvidia (NVDA), Microsoft (MSFT), Meta (META), and Alphabet (GOOG) (GOOGL) have dominated the artificial intelligence (AI) narrative. However, several other AI stocks are flying under the radar.
One such micro-cap stock is Guardforce AI (GFAI), a security and technology provider specializing in integrating AI and robotics with business operations. The Singapore-based company serves the retail and travel industries in the Asia-Pacific region.
Its core offerings include robot as a service through its proprietary intelligence cloud platform, which enables robot connectivity and communication. Its services range from hotel check-in systems to robot advertising, event management, and food delivery. It also provides traditional cash management services across multiple Asian markets and is expanding into the AIoT Robot advertising business in the U.S.
The AI stock went public in late 2021 and trades 99% below all-time highs, indicating that it has burned through massive investor wealth. Let’s see if this little-known AI stock is a good buy right now.
Is Guardforce AI a Good Stock to Own?
Earlier this year, Guardforce AI announced that its secured logistic subsidiary has renewed key contracts with its long-term customer, the Government Savings Bank (GSB). GSB is a state enterprise under the supervision of Thailand’s Minister of Finance.
Under the agreement, GFCS (Guardforce’s subsidiary) will continue to deliver cash center operations and secured logistics services for coins under two three-year multimillion-dollar contracts. GFCS already supports 1,000 GSB branches, which account for 95% of the latter’s network, providing ATM replenishment, maintenance, and coin services.
“These renewals extend our decade-long relationship with GSB and validate our position as Thailand’s premier secured logistics provider," said Kelvin Chu, Managing Director at GFCS. “The continued trust of a government-backed institution highlights the reliability and quality of our services on a national level.”
In December 2024, Guardforce AI announced a partnership with Librum Technologies. The collaboration focuses on developing AI agents for travel assistance and retail purchasing solutions.
Librum’s technology combines various AI models to provide accurate and reliable computational results. Its “AI-oracle machines” system selects the most appropriate AI models for specific queries, which helps maintain consistency and reduce errors.
Guardforce CEO Lei Wang reported that the initial proof-of-concept phase had been completed successfully, with the AI agents showing promise across multiple applications. The partnership aims to develop vertical AI applications that improve operational efficiency and deliver tangible value to clients.
What Is the Target Price for GFAI Stock?
Analysts tracking GFAI expect sales to rise from $34.5 million in 2022 to $35.7 million in 2024 and $37.65 million in 2025. While the company’s top-line growth forecast is steady, it remains unprofitable, contributing to its underperformance.
With a gross margin of 15.9%, Guardforce has reported an operating margin of -35% in the last 12 months. A single analyst tracking the tech stock has a “Strong Buy” recommendation. The average trading price for GFAI stock is $4.50, indicating upside potential of 200% from current levels.
