Ascendiant says AI ‘presents strong growth potential’ for software firm Phunware

Ascendiant Capital Markets believes that Phunware, a small-cap software developer specializing in mobile advertising, could benefit from an announced pivot toward more AI integration into its products. The company, known for developing a mobile app for Donald Trump’s failed 2020 presidential campaign, unveiled this change in strategy last autumn.

Phunware’s pivot to new AI growth areas presents “strong growth potential,” Ascendiant Capital Markets analyst Edward Woo wrote in a note quoted by MarketWatch. Demand for the company’s services is rising, driven in part by its involvement in the “rapidly growing and evolving markets” of AI, mobile cloud software, media, big data, and cryptonetworking, Woo wrote yesterday, April 21.

He reiterated his “buy” rating on the stock while lowering its target price by about 8% to $12 per share, 376% above the current market price — Phunware closed at $2.52 per share yesterday.

The MarketWatch article does not specify why Ascendiant revised its target price for Phunware but notes that another research firm, Taglich Brothers, also recently slashed its target price, by 52% to $5.75 per share, owing to a broader sector revaluation and Taglich Brothers’ initial 2026 sales per share forecast for Phunware.

According to MarketWatch, Phunware has only four analyst ratings: three “buys” and one “hold.” The average target price is $6.31 per share, meaning more than 150% upside.

MarketWatch notes that Phunware is best known as the creator of the mobile app for Donald Trump’s failed 2020 reelection campaign. The stock skyrocketed in autumn 2024, peaking at $14.14 per share on October 23. Not long before, Phunware issued a letter to shareholders, signed by then-CEO Mike Snavely, outlining a new strategic focus on AI.

Specifically, the company announced the development of a new generative AI-based platform that would simplify mobile app design and content creation and “drastically reduce the need for expensive and time-consuming design and development investments.”

In November, Phunware revealed its plans to acquire a controlling interest in MyCanvass, a tech company that is a subsidiary of Campaign Nucleus. The latter is a SaaS platform company founded by Brad Parscale, who served as the digital media director for Trump's 2016 presidential campaign and his campaign manager in 2020, Phunware wrote at the time. The collaboration aims to enhance campaign effectiveness and enable real-time personalized voter outreach, according to current Phunware CEO Stephen Chen.

Earlier this year, Phunware unveiled its plans to launch another AI-based product in mid-2025 — a personal concierge for the hospitality industry.