AITX Stock Forecast: Is This Penny Stock a Good Buy?

The AITX stock price has been in a strong downward trend in the past few months. The penny stock is trading at $0.016, which is about 94% below its highest level in 2021. It has fallen by over 30% year-to-date, bringing its total market cap to about $58 million. Artificial Intelligence Technology Solutions is a small company that has three subsidiaries. Its Robotic Assistance Devices (RAD) company designs, delivers and maintains stationary workflow automation solutions targeted at firms. 

Its other business is known as Robotic Assistance Devices Group (RADG), which provides software for autonomous robotics. Finally, its Robotic Assistance Devices Mobile (RADM) delivers workflow automation solutions to companies. The company hopes to become a leading player in one of the biggest industries globally. As labour gets more expensive, more companies are opting to automate. Indeed, analysts expect that the robotics business will have a CAGR of over 17.5% by 2027 and reach $76 billion.

Still, AITX business has been going through substantial challenges. For one, its losses have been rising. The most recent 10k report shows that its revenue from $260k in the year ended in February 2020 to $360k in the year ended in Feb 2021. But in the same period, the company’s net loss rose to almost $6 million. Still, a quick look at its investor relations portal shows no recent earnings.

AITX stock price forecast

The daily chart shows that the AITX share price jumped to an all-time high of $0.2931 in 2021. Since then, the shares have crashed by over 94%. Along the way, it has moved below the 25-day and 50-day moving averages.

The stock has also formed a descending channel that is shown in blue, it is slightly below the upper side of the descending channel. Therefore, the stock will likely keep falling as bears target the lower side of the channel at about $0.01. This view will be invalidated if the stock moves above the key resistance at $0.025.

aitx stock