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Knightscope (KSCP) Rated Buy as Company Targets Growth Through Acquisitions

Knightscope, Inc. (NASDAQ:KSCP) is one of the best AI penny stocks to buy right now. On February 10, H.C. Wainwright reiterated its Buy rating and $12.00 price target on Knightscope Inc. (NASDAQ: KSCP), pointing to acquisitions as a key growth driver. The firm noted Knightscope’s recent move to retain a buy-side investment bank, signaling that deals could materialize as early as this year. While no timeline was set, Wainwright believes this proactive approach could accelerate growth beyond organic expansion.

Knightscope’s financials support such a strategy, with $20.4 million in cash reported on its balance sheet as of Q3 2025. While the company could fund smaller acquisitions outright, Wainwright expects Knightscope to use a mix of cash and stock to align long-term interests with targets. The firm anticipates Knightscope will pursue businesses offering complementary technologies, customer bases, or strong standalone performance, with the right deal potentially boosting adoption of its security robots.

Earlier, on February 5, Knightscope announced it had engaged Lake Street Capital Markets as its exclusive buy-side advisor to guide acquisitions of complementary businesses and technologies. The company also released an updated investor presentation outlining its long-term strategy, operating model, and growth priorities. CEO William Santana Li emphasized Knightscope’s focus on scaling into a leading integrated security services platform, with Lake Street helping identify opportunities to strengthen its technology stack and service capabilities.

Knightscope is a U.S.-based security technology company developing the nation’s first Autonomous Security Force. Its platform integrates autonomous machines, advanced software, and human expertise to protect people, property, and infrastructure while lowering costs.

While we acknowledge the potential of Knightscope, Inc. (NASDAQ:KSCP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KSCP and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Best Affordable Tech Stocks to Buy Right Now and 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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