Evolv Technologies Holdings, Inc. (EVLV) Reports Record Customer Growth and Expands AI-Powered Weapon Detection with Evolv Express

We recently compiled a list of the 20 Hidden Gems of AI Stocks. In this article, we’ll take a look at where Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) stands compared to the other hidden AI stocks.

The rise of artificial intelligence (AI) companies has dominated financial markets in recent months, diverting investors’ attention from other issues. This is because AI-powered breakthroughs are creating new areas of focus for investors and revolutionizing major industries. Key topics in this context include AI-powered environmental monitoring systems, ethical discussions around the role of AI in healthcare, and the further development of large language models. For example, tech giant Microsoft recently led the development of an AI system that can predict air pollution on a global scale. This system generates hyperlocal pollution forecasts in real time using data from satellites and ground sensors. The breakthrough could prove crucial for public health, particularly in densely populated areas that suffer from poor air quality. The implications of this development extend beyond environmental health to improving policy decisions worldwide.

For more information on these developments, see The top 33 AI companies to watch out for And 20 industrial stocks are already riding the AI ​​wave.

A few key numbers illustrate this revolution in action. The global AI market was valued at around $208 billion in 2023 and is expected to reach $2 trillion by 2030, growing at a compound annual growth rate of 37% from 2024 to 2030 (according to Statista estimates). According to recent surveys, around 35% of companies are already using AI in some form, while another 42% are exploring the potential for future integration. The majority of AI usage focuses on process automation, customer insights and data analysis. Hyperscalers are leading innovation in this regard, with billions of dollars invested in AI data centers around the world. AI is also expected to both create and displace jobs. According to the World Economic Forum, AI is expected to displace 85 million jobs globally by 2025 but create 97 million new jobs. These new jobs will primarily focus on AI development, machine learning and AI governance. Investors should closely monitor these emerging trends to stay ahead and place their bets accordingly.

For more information on these developments, see 30 The most important AI stocks according to BlackRock And Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

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Our methodology

For this article, we selected AI stocks that are not widely covered by financial media or Wall Street analysts, but have AI-related operations and opportunities that deserve investor attention. These stocks are also popular with hedge funds.

Why do we care about the stocks hedge funds invest in? The reason is simple: Our research shows that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (see more details here).

A security team patrols a public building using their advanced Evolv systems.

Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)

Number of hedge fund owners: 19

Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) provides artificial intelligence-based weapon detection for security clearances in the United States and internationally. The company beat market expectations for second-quarter 2024 earnings per share and revenue by $0.01 million and $1.7 million, respectively. Peter George, the company’s CEO, said during the earnings call that the company added 84 new customers in the second quarter and now serves over 800 customers across 10 key vertical markets. According to the CEO, this was the highest number of new customers this quarter since the fourth quarter of 2022. He added that the company activated 441 new multi-year Evolv Express subscriptions in the second quarter, compared to 377 in the first quarter.

Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) markets Evolv Express as an AI-powered concealed weapon detection system that can distinguish between threats and everyday items such as phones and keys. It is used in large venues such as stadiums and schools. According to George, the system was used to screen nearly 3 million visitors per day on average in the second quarter, with customers using Evolv Express to tag an average of more than 500 firearms each day.

Total EVLV takes 5th place on our list of hidden AI stocks. While we recognize EVLV’s potential as an investment, we believe some AI stocks are more promising for generating higher returns, and within a shorter time frame. If you’re looking for an AI stock that has more promise than EVLV but trades at less than 5 times earnings, check out our report on it cheapest AI stock.

READ MORE: $30 Trillion Opportunity: The 15 Best Humanoid Robot Stocks to Buy, According to Morgan Stanley And Jim Cramer says NVIDIA has “become a wasteland”.

Disclosure: None. This article was originally published on Insider Monkey.