With an upside potential of around 300% and a relative strength index (RSI) of 34.8, Knightscope, Inc. (NASDAQ:KSCP) stands out as one of the most oversold AI stocks in the market.
possessed-photography-jIBMSMs4_kA-unsplash
Knightscope, Inc. (NASDAQ:KSCP) appears to be building momentum across autonomous security and government services, backed by new contract wins, rapid revenue growth, and the expansion of its AI-powered security platform.
Knightscope, Inc. (NASDAQ:KSCP) announced approximately $3.8 million in new and recurring contracts across eight verticals on May 19, 2026. The bookings were led by critical infrastructure, with engagements tied to a major California county government, the federal government, major metropolitan law enforcement and emergency response agencies, a U.S. national laboratory, regional transit, aviation and port authorities, and several transportation and government programs across the country.
William Santana Li, Chairman and Chief Executive Officer of Knightscope, Inc. (NASDAQ:KSCP), commented:
“Clients across the country are tired of buying products and getting fragmented results. They want outcomes, and they want one accountable provider. That is exactly what we are building: one provider, one platform, one accountable force.”
That update followed Knightscope, Inc. (NASDAQ:KSCP)’s first-quarter 2026 results, where revenue rose 106% year-over-year to $6.0 million from $2.9 million. Service revenue increased 98% to $4.2 million, including about $2.4 million from one month of Security Force operations after the company completed its acquisition of Event Risk in February.
Product revenue also climbed 128% to $1.8 million, mainly reflecting the fulfillment of Emergency Communication Device orders that had previously been affected by supply chain constraints.
The Event Risk acquisition added licensed armed and unarmed security agent operations to Knightscope, Inc. (NASDAQ:KSCP)’s Autonomous Security Force, bringing together autonomous machines, advanced software, real-time monitoring, and licensed security agents under one company.
Gross margin also turned positive in Q1, reaching $0.5 million, or 8% of revenue, compared with a gross loss of $0.7 million in the prior-year period. The company announced the results on May 15, 2026.
Meanwhile, Knightscope, Inc. (NASDAQ:KSCP)’s April agreement with Carnegie Mellon University added another AI- and robotics-related development, with the company committing to fund five educational course projects over five years and to make its National Security Robotics Lab available to the university.
Knightscope, Inc. (NASDAQ:KSCP) provides AI-driven autonomous security robots. These self-driving robots are equipped with monitoring cameras. They can patrol malls, parking lots, and other public spaces to enhance public safety.
While we acknowledge the risk and potential of KSCP 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 KSCP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Follow Insider Monkey on Google News.
