Gaxos.ai Inc. (NASDAQ:GXAI) shares are volatile Wednesday after the company announced it has partnered with Meshy to deliver 3D assets in its AI solution for game developers and publishers.

The Details:

Gaxos.ai and Meshy have partnered to use generative AI to transform text and images into 3D models in Gaxos.ai's game development solution.

"We are happy to announce our partnership with Meshy to deliver quality 3D models through our product," said Vadim Mats, CEO of Gaxos.AI. "We look forward to working with Meshy to make our product and service and integral part of any game developer's or publisher's toolkit."

Gaxos.ai recently announced the completion of its AI solution for game developers which features plug-and-play functionality for Unity, upcoming support for Unreal Engine and a User-Generated-Ai-Content feature which allows gamers to use AI in real time.

Gaxos.ai shares soared in premarket trading Wednesday, but have since given back all gains. According to data from Benzinga Pro, more than 5 million shares have already been traded in the session, compared to the stock's 100-day average of less than 26,000 shares.

Is GXAI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Gaxos.AI's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Gaxos.AI does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 14.31%, you'll need to buy a share of CBRE Clarion Glb Real Est by Sept. 20, 2024. Once done, you can expect to receive a nominal payout of $0.06 on Sept. 30, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Gaxos.AI will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

GXAI Price Action: According to Benzinga Pro, Gaxos.ai shares are down 10.1% at $2.40 at the time of publication Wednesday.

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Image: Pete Linforth from Pixabay