Bullfrog AI Holdings, Inc. (BFRG) is revolutionizing drug development with the AI-driven bfLEAP platform and advancing psychiatric research through LIBD partnership

We recently compiled a list of the 20 Hidden Gems of AI Stocks. In this article, we'll take a look at where Bullfrog AI Holdings, Inc. (NASDAQ:BFRG) 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 innovation leaders 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 clinician wearing a protective lab coat reads a patient's brain scan.

Bullfrog AI Holdings, Inc. (NASDAQ:BFRG)

Number of hedge fund owners: 2

Bullfrog AI Holdings, Inc. (NASDAQ:BFRG) is a digital biopharmaceutical company focused on artificial intelligence and machine learning (AI/ML)-driven analysis of medical and healthcare datasets in the United States. A key AI product of the company is the bfLEAP platform, which aims to streamline the drug development process by analyzing complex biological and clinical data. The aim of the platform is to reduce the error rate in drug development, save costs and accelerate the discovery of new treatment methods. BullFrog AI's focus is on using AI to uncover insights that would otherwise be difficult to detect and to improve the precision of treatments at various stages of drug development.

Bullfrog AI Holdings, Inc. (NASDAQ:BFRG) is also partnering with the Lieber Institute for Brain Development (LIBD). Using bfLEAP, they have achieved groundbreaking results in psychiatric research and identified biological subtypes within psychiatric disorders such as schizophrenia and bipolar disorder. This could lead to more personalized and effective treatments for these conditions, which would be a significant advance in mental health research.

Overall BFRG takes 17th place on our list of hidden AI stocks. While we recognize BFRG'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 BFRG 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.