With notable exposure to artificial intelligence and growing investor interest, Guardforce AI Co., Limited (NASDAQ:GFAI) earns a spot on our list of the most popular AI penny stocks to buy.
Guardforce AI Co., Limited (NASDAQ:GFAI), a sub-$2 AI stock, appears to be focusing on providing its investors with a transparent and measurable path toward recurring, high-margin AI-driven income. That was evident in its finalization of the MGAI Limited acquisition on March 17, 2026.
Through MGAI, an early and specialized player in AI for helping children with speech and rehabilitation needs in Asia, Guardforce AI Co., Limited (NASDAQ:GFAI) now has indirect majority control of the platform, with a large user base of over 110,000 patients. Furthermore, the platform encompasses a vast network of professionals, adding value and scalability.
Guardforce AI Co., Limited (NASDAQ:GFAI) expects the acquired business to grow revenue steadily each year, targeting $0.5 million in 2026, $1 million in 2027, and $1.5 million in 2028.
That deal came following the company’s efforts in 2025 directed toward building the required financial support. The performance in 2025 reflected the company’s transition from traditional services like logistics and security to AI-driven automation systems, while keeping operational execution and discipline intact.
Total revenue for the year crossed the $35 million mark, thanks to an 8.0% year-over-year (YoY) growth. That top-line growth was a result of strong growth of the company’s AI, Robotics-as-a-Service, and Smart Solutions segment, which expanded 15.3%.
Accordingly, Guardforce AI Co., Limited (NASDAQ:GFAI) saw EBITDA improve to a $2.48 million loss, its lowest level since 2022, following a 23.3% improvement. At the same time, the company’s R&D activity continued to increase, doubling to $837,719. With a cash balance of $24.55 million, management appears confident in its ability to accelerate its future AI development, strategic acquisitions, and talent recruitment.
Guardforce AI Co., Limited (NASDAQ:GFAI) delivers integrated security solutions. Its business segments include Secured Logistics, AI and Robotics Solutions, General Security Solutions, and Corporate and Others.
While we acknowledge the risk and potential of GFAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GFAI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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