The artificial intelligence arms race may have uncovered a new stock that investors should be watching. Roadzen (NASDAQ:RDZN) is bring AI to the world of auto insurance and according to its recent earnings report, business has been good.

Less than a year after going public, the company has reported record revenue growth and RDZN stock is surging. This will likely put the previously little-known company on Wall Street’s radar as investors hunt for the next AI star. While still a penny stock, Roadzen’s growth indicates that it could easily be on the fast track to blow past the $5 mark.

What’s Happening with RDZN Stock

Roadzen is one of the market’s top movers today. After reporting results for the 12-month period that ended on March 31, 2024, RDZN stock is up roughly 75%. This surge has pushed it from $1.62 to just under $3. Intraday highs have surpassed $3.30.

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This outsized move game after Roadzen reported revenue of $46.7 million, an astounding 245% increase from last year’s $13.5 million.

As RDZN stock surges, its leaders remain focused on growth and expansion. Founder and CEO Rohan Malhotra notes that the company is expanding its reach through both the U.S. and U.K. while continuing to grow in India. CFO Jean-No?l Gallardo provided further context on its growth plans, stating:

“In preparation for 2024 year-end, we focused on simplifying and streamlining the organizational structure and internal financial reporting protocols to ready the Company for scale and another breakout year in 2025. We also focused on streamlining operations and eliminating redundancies. This allowed us to rationalize small subsidiaries that no longer align with our strategy, yielding a 7% reduction in headcount and the closure of under-performing assets.”

Why It Matters

For investors, RDZN stock could be a tempting way to play the fast-growing AI trend. Specifically, Roadzen works with automakers, dealerships, and insurance companies via its platform. This platform uses AI to create new auto insurance products as well as sell insurance and process claims.

This tie in, as well as its financial performance, could establish Roadzen as an AI stock that investors should be watching.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.