Alzamend Neuro: A Misplaced Bet on AI? Why the EV Sector's Growth Lies Elsewhere

The recent surge in Alzamend Neuro (ALZN) has sparked investor curiosity, fueled by rumors of breakthroughs in AI-driven automotive technology. Yet, beneath the surface lies a critical misalignment between the company's reality and its perceived narrative. While ALZN's stock has climbed 82% since announcing a clinical trial partnership in Q2 2025, its core business—neurological drug development—bears little relation to automotive AI. This article dissects the confusion and identifies the true catalyst for growth in the AI-electric vehicle (EV) sector: Alarum Technologies (ALAR), a company often conflated with ALZN in market chatter.

The ALZN Paradox: Biotech, Not Automotive

Alzamend Neuro is a clinical-stage biopharmaceutical firm focused on neurodegenerative diseases. Its Q1 2025 earnings revealed zero revenue, with net losses narrowing to $974,000 due to cost-cutting—not AI breakthroughs. The company's lone AI tie-in is a partnership with QMENTA, a medical imaging AI firm, to optimize Phase II trials for its lithium-delivery drug AL001. This collaboration, while innovative, is confined to healthcare imaging and offers no exposure to automotive markets.

Investors mistakenly conflating ALZN with Alarum Technologies (ALAR)—a data infrastructure leader for AI applications—are the real drivers of ALZN's recent volatility. ALAR, not ALZN, is the firm delivering 40% year-over-year growth in AI-enabled products, fueled by partnerships with automakers and tech giants. This distinction is critical for investors seeking exposure to the EV sector's AI revolution.

The Real Growth Engine: ALAR's Automotive AI Play

Alarum Technologies (ALAR) is the hidden gem powering AI's penetration into automotive innovation. Its Q1 2025 results showcased a $7.1 million revenue decline on paper, but beneath the numbers lies a strategic reinvestment in AI infrastructure critical to EV advancement:

1. Data Collection at Scale: ALAR's proxy networks and unblocker tools enable automakers to scrape vast datasets for training autonomous driving algorithms.
2. Automotive Partnerships: Major collaborations include a large Asian online marketplace (likely Alibaba or Tencent) and a global consumer electronics brand (e.g., Samsung or Sony) developing in-car AI systems.
3. Geopolitical Edge: With 95% of operations in Israel—a global AI innovation hub—ALAR benefits from a talent pool driving cutting-edge solutions for EV safety and efficiency.

The market has yet to fully price in ALAR's AI infrastructure plays. While its Q2 2025 revenue guidance of $7.9 million signals stabilization, its margin pressures (Adjusted EBITDA down 59% YoY) reflect deliberate scaling investments. This bodes well for long-term dominance in a sector expected to grow at 15% annually through 2030, driven by EV adoption and government subsidies like the Inflation Reduction Act.

Why ALZN's Surge is a Misplaced Bet

ALZN's recent gains (82% since Q2 2025 trial news) are a classic case of sector confusion and speculative overreach. Key risks for investors:

1. Zero Revenue, Persistent Cash Burn: Despite cost cuts, ALZN's $1.2 million in Q1 2025 cash is insufficient to fund operations beyond 2026, per its own “going concern” warning.
2. No Automotive Exposure: Its AI partnership with QMENTA is strictly for medical imaging, offering no leverage over EV demand or government incentives.
3. ALAR's Shadow: As ALAR's Q2 2025 results near, its actual AI-automotive traction could trigger a reallocation of funds from ALZN's speculative float.

The Investment Thesis: Look Beyond the Noise

For investors seeking exposure to AI's disruption of the automotive industry, ALZN is a distraction. The focus should be on Alarum Technologies (ALAR), whose infrastructure is the unsung backbone of EV innovation:

• Demand Catalysts: Rising EV sales (30% global growth in 2025) and mandatory AI-driven safety features in autonomous vehicles.
• Valuation: At a P/E of -4.33 (due to losses), ALAR is priced for turnaround, not growth. A margin recovery to 2024 levels would unlock 40% upside.
• Risk Mitigation: Diversify into EV battery tech (e.g., ALB for lithium) or autonomous software (e.g., CRUISE), but prioritize firms with tangible AI-automotive revenue streams.

Final Call to Action

The AI-electric vehicle revolution is here, but not through Alzamend Neuro. Investors chasing this megatrend should redirect capital to ALAR, whose Q2 earnings (July 29, 2025) will likely confirm its strategic dominance. For ALZN, the path to profitability remains clouded by its biotech focus—making it a speculative play at best.

In a market rife with misinformation, clarity is currency. Follow the data, not the noise.

— The Author