AITX (OTCM: AITX) stock price jumped by more than 21% on Friday after the small artificial intelligence and robot manufacturer announced a new order. The penny stock jumped to a high of $0.0074, the highest point since March 10. It has soared by more than 32% from the lowest point this year.
Why did AITX shares jump?
Artificial Intelligence Technology Solutions (AITX) is small company that manufactures robots for use in several industries like the security and manufacturing sectors. It has three divisions, including RAD, RADM, and RAD-G. RAD creates stationary automated workflows while RADM creates mobile workflows.
AITX stock price initially jumped early this year as other companies in the artificial intelligence industry soared. Some of the top AI stocks that did well were C3.ai and Guardforce AI among others. The stock then declined to an all-time low as traction in the sector eased.
On Friday, AITX shares jumped sharply after the company announced a new big order of its ROSA security robots. In a statement, the firm said that the purchaser was one of the biggest companies in the US. The Fortune 100 company has over 1,500 retail locations in the US, In a statement, the head of RAD said:
“Our sales team works diligently to service our dealer network and present the benefits of RAD solutions to end-users like this incredible client.”
The new order came a few weeks after AITX upgraded its path towards profitability. The company said that it was implementing cost cuts that will save it $100k per month by eliminating some of its projects.
As a result, the firm expects that it will be cash flow positive by December of this year. The most recent results showed that AITX’s revenue jumped by 7.62% on a year-on-year basis to $402k. Its net loss improved by 42% to $4 million.
AITX stock price forecast
The daily chart shows that the AITX share price is showing signs of bottoming. The stock formed what looks like a triple-bottom pattern at $0.0060 where it failed to move below several times since last year. In most cases, a triple-bottom pattern is usually a bullish sign.
The stock has crossed the important 50-day exponential moving average (EMA). Therefore, while AITX is a risky company as I wrote in this article, there is a likelihood that we will see more upside soon. This rebound will likely see it jump to the key psychological level at $0.01, which is ~40% above the current level. In the long term, I believe that the shares will continue falling.
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