7 Most Popular AI Penny Stocks Under $5 To Avoid

5. Perfect Corp. (NYSE:PERF)

Share Price as of June 21: $2.01

Year-to-Date Returns as of June 21: -28.98%

Number of Hedge Fund Holders: 10

Perfect Corp. (NYSE:PERF) is one of the 7 most popular AI penny stocks under $5 to avoid. On June 11, Perfect revealed a “groundbreaking” partnership with Nvidia (NASDAQ:NVDA) to enhance its suite of next-generation beauty and fashion technology solutions. Specifically, Perfect will integrate Nvidia’s AI and accelerate computing platforms into its products. According to Perfect, this integration will help to deliver hyper-personalized experiences with unparalleled realism, accuracy, and speed in the beauty and fashion industries.

Perfect’s AI Skincare solution uses deep-learning AI models trained on over 70,000 medical-grade images to detect up to 15 skin conditions in real time. It is optimized with NVIDIA TensorRT for lightning-fast runtime performance. On the other hand, YouCam Online Editor offers Generative AI features, including AI Hairstyle Generation and AI Video Face Swap. This, too, leverages NVIDIA TensorRT, which optimizes generative diffusion models for real-time creation of personalized hairstyles, face swaps, and clothing try-ons.

Thus, integrating Nvidia’s technology into the solutions addresses several critical challenges. The main ones are achieving true-to-life color representation and adapting to diverse skin tones and types.

Perfect Corp. (NYSE:PERF) is an AI and augmented reality software company headquartered in New Taipei City, Taiwan. The firm creates digital solutions for the beauty, fashion, and skincare industries. Its key products include the YouCam app suite and the WANNA virtual try-on platform.