In this article, we are going to discuss the 10 best artificial intelligence stocks to buy under $10. You can also check out the 20 Most Used Artificial Intelligence (AI) Platforms of 2024 here.
Artificial Intelligence (AI) is expected to be among the primary drivers of transformation and competitive advantage in the rapidly changing economy. The AI industry has experienced strong growth, and this is evident in the doubling of global funding to $66.8 billion as of 2021. Moreover, a record number of 65 AI companies achieved valuations exceeding $1 billion in 2021. This reflected a 442% increase from the preceding year. Each year observes higher adoption of AI solutions by companies and governments worldwide.
In 2022, the global market size for artificial intelligence reached $454.1 billion. The market is projected to reach approximately $2,575.2 billion by 2032. This growth reflects a compound annual growth rate (CAGR) of 19% from 2023 to 2032. In 2022, North America led the market with the largest share. This was mainly due to the high demand for advanced hardware and software products that automate tasks across various industries. Moreover, supportive government policies encouraging AI adoption have also contributed significantly to market growth in the region.
Specifically, the United States’ artificial intelligence market was valued at $103.7 billion in 2022. It is projected to grow to approximately $594 billion by 2032, with a compound annual growth rate of 19.1% from 2023 to 2032.
According to a report by PwC, by 2030, AI has the potential to add approximately $15.7 trillion to the global economy, exceeding the current combined output of China and India. This contribution is expected to break down into $6.6 trillion from higher productivity and $9.1 trillion from effects related to increased consumption.
In the short term, AI is expected to provide the most significant economic benefits through increased productivity. This will involve automating routine tasks, improving employees’ skills, and enabling them to concentrate on higher-value work. Improvements in labor productivity are projected to account for over 55% of all GDP gains from AI between 2017 and 2030.
Over time, the boost to GDP from product improvements and consumption, driven by AI, will surpass the productivity gains. In 2030, 58% of all GDP gains are expected to come from consumption impacts. Consumers will be mainly drawn to higher-quality and more personalized products and services.
According to a new report by Bloomberg Intelligence (BI), the generative AI market, driven by consumer programs like Google’s Bard and OpenAI’s ChatGPT, is set to grow significantly. It is projected to expand from a market size of $40 billion in 2022 to $1.3 trillion over the next decade. The increasing demand for generative AI products is expected to generate approximately $280 billion in new software revenue. This growth will be fueled by specialized assistants and copilots that improve coding efficiency.
Keeping in view the bright outlook of the AI industry, let’s take a look at the best artificial intelligence stocks to buy under $10.
A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.
Our Methodology
To shortlist the best artificial intelligence stocks under $10, we relied on Insider Monkey’s database of 920 hedge funds as of Q1 2024 to analyze the hedge fund sentiment for each stock. We picked the artificial intelligence stocks with the highest number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Artificial Intelligence Stocks to Buy Under $10
10. FiscalNote Holdings, Inc. (NYSE:NOTE)
Number of Hedge Fund Holders: 9
Stock Price: $1.48
FiscalNote Holdings, Inc. (NYSE:NOTE) is a prominent information services company that uses AI-driven enterprise SaaS technology to deliver global legislative, political, and market intelligence.
In the first quarter of 2024, FiscalNote Holdings, Inc. (NYSE:NOTE) achieved an $8.2 million improvement in adjusted EBITDA compared to the previous year, marking the company’s third consecutive quarter of adjusted EBITDA profitability. The company anticipates a return to double-digit growth rates in 2025 by reallocating resources to high-performing offerings.
During the quarter, the company also launched the FiscalNote Global Intelligence Copilot. This is an AI-powered assistant designed to help customers analyze global dynamics and lower risks associated with macroeconomic and regulatory challenges.
FiscalNote Holdings, Inc. (NYSE:NOTE) is organizing “AI Product Day 2024” on June 27, 2024. This event aims to highlight current and upcoming AI-powered products, as well as the company’s strategy and product roadmap for the coming years.
Analysts are bullish on FiscalNote Holdings, Inc. (NYSE:NOTE) and have assigned an average price target of $3.22. This reflects a potential upside of over 115% from the current price levels. Moreover, 4 analysts have given a “Buy” rating to the stock, while 2 recommend holding it.
9. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 12
Stock Price: $1.28
BigBear.ai Holdings, Inc. (NYSE:BBAI) specializes in providing decision intelligence solutions powered by artificial intelligence. Their offerings include solutions for national security, digital identity, supply chain management, and biometrics. The company is based in Columbia, Maryland.
While BigBear.ai Holdings, Inc. (NYSE:BBAI) reported mixed results in Q1 2024, the company remains optimistic regarding its future. BigBear.ai Holdings, Inc. (NYSE:BBAI) has reaffirmed its revenue guidance for the full-year 2024, expecting to achieve between $195 million and $215 million in revenue. As of March 31, 2024, the company holds a cash balance of $81.4 million.
Furthermore, BigBear.ai Holdings, Inc. (NYSE:BBAI) has completed the acquisition of Pangiam through an all-stock transaction. This merger integrates BigBear.ai’s strong computer vision capabilities with Pangiam’s expertise in facial recognition, advanced biometrics, and image-based anomaly detection.
Analysts have a bullish outlook on BigBear.ai Holdings, Inc. (NYSE:BBAI). The stock has received an average price target of $3.63, reflecting an upside potential of over 180%. Furthermore, 4 analysts have given a consensus “Buy” rating to BigBear.ai Holdings, Inc. (NYSE:BBAI).
Of the 920 hedge funds being tracked by Insider Monkey as of Q1 2024, 12 funds reported owning a stake in BigBear.ai Holdings, Inc. (NYSE:BBAI), making it one of the best artificial intelligence stocks to buy under $10.
8. SoundHound AI, Inc. (NASDAQ:SOUN)
No of Hedge Fund Holders: 15
Stock Price: $3.91
SoundHound AI (NASDAQ:SOUN) is a prominent global provider of conversational intelligence solutions. The company specializes in voice AI technology, enabling businesses to deliver unique conversational experiences to their customers.
The company reported Q1 2024 revenue of $11.6 million. This reflected a 73% year-over-year increase and exceeded the estimates of $10.10 million. The net loss per share improved to $0.07, lower than the expected $0.09. This indicates effective operational management, despite broader net losses.
SoundHound AI (NASDAQ:SOUN) has revised its full-year revenue guidance to a range of $65 million to $77 million, signaling optimistic future prospects. The company highlighted the high demand for voice AI subscriptions, particularly within the customer service and automotive sectors, as significant drivers of its growth.
Furthermore, SoundHound AI, Inc. (NASDAQ:SOUN) has received an average price target of $7.43, reflecting analysts’ bullish outlook on the stock. The price target reflects a potential upside of over 90%. Meanwhile, 2 analysts have given the stock a “Strong Buy” rating, while 2 have assigned a “Buy” rating.
7. Rekor Systems, Inc. (NASDAQ:REKR)
Number of Hedge Fund Holders:16
Stock Price: $1.42
Rekor Systems, Inc. (NASDAQ:REKR) is a leading company using artificial intelligence (AI) to transform roadways into intelligent systems. The company was founded in 2017 and is headquartered in Columbia, Maryland.
Rekor Systems, Inc. (NASDAQ:REKR) reported strong financial results for Q1 2024. Revenue jumped 58% year-over-year, reaching $9.8 million compared to $6.2 million in Q1 2023. Recurring revenue also showed positive growth, increasing 18% to $5.0 million from $4.2 million in the same period last year.
The company also improved its market position through the acquisition of All Traffic Data in January 2024. Furthermore, Rekor Systems, Inc. (NASDAQ:REKR) strengthened its financial standing by completing a $26.4 million public offering in February and early redemption of senior secured notes.
Analysts have a positive outlook on Rekor Systems, Inc. (NASDAQ:REKR), assigning a Moderate Buy rating to the stock. Looking toward the next 12 months, the average price target for the stock sits at $4.50, which translates to a potential upside of over 200%.
6. Conduent Incorporated (NASDAQ:CNDT)
Number of Hedge Fund Holders: 16
Stock Price: $3.22
Conduent Incorporated (NASDAQ:CNDT) is a digital business solutions provider, that helps organizations around the world run efficiently. It caters to the government, businesses, and transport agencies. Conduent Incorporated (NASDAQ:CNDT) was founded in 2016 and is headquartered in Florham Park, New Jersey,
The company’s Q1 2024 financial results were reported in May 2024. Revenue surpassed expectations at $921 million, while Adjusted EBITDA and EBITDA margin met forecasts at $69 million and 7.5%, respectively. Moreover, Conduent Incorporated (NASDAQ:CNDT) recently completed the sale of its Curbside Management and Public Safety businesses. The company also expects to finalize the BenefitWallet divestiture in May. This portfolio streamlining aims to optimize future growth through efficient capital allocation.
Analysts are optimistic about the company’s future with a current rating of “Moderate Buy.” The 12-month price target for Conduent Incorporated (NASDAQ:CNDT) sits at $7, representing a significant potential upside of over 115% from the last closing price.
As of Q1 2024, 16 hedge funds reported owning a stake in Conduent Incorporated (NASDAQ:CNDT), making it one of the best artificial intelligence stocks to buy under $10.
5. Lantronix Inc. (NASDAQ:LTRX)
Number of Hedge Fund Holders: 17
Stock Price: $3.48
Lantronix Inc. (NASDAQ:LTRX) is a global leader in secure data access and management solutions. Founded in 1989 and headquartered in Irvine, California, Lantronix Inc. (NASDAQ:LTRX) is a one-stop shop for businesses looking to connect, manage, and unlock the power of electronic devices in the ever-growing IoT landscape.
In the first quarter of fiscal 2024, Lantronix Inc. (NASDAQ:LTRX) reported revenue of $33 million, reflecting a 4% increase year-over-year. Lantronix Inc. (NASDAQ:LTRX) has maintained its full-year 2024 guidance, expecting revenue to range from $175 million to $185 million and EPS to be between $0.50 and $0.60 per share.
Analysts are bullish on Lantronix Inc. (NASDAQ:LTRX) with a current rating of Strong Buy. This assessment is based on evaluations from 4 analysts in the past 3 months. The 12-month price target for Lantronix Inc. (NASDAQ:LTRX) sits at $7.25, representing a significant potential upside of over 105%.
Here’s what Wasatch Global Investors said about Lantronix Inc. (NASDAQ:LTRX) in its Q1 2024 investor letter:
“Another significant detractor was Lantronix, Inc. (NASDAQ:LTRX), which provides integrated software and application development, software as a service (SaaS) management, intelligent edge computing and a wide range of sensors and trackers. The stock moved higher early in the quarter based on expectations for strong revenues and earnings. But when the numbers were released later in the quarter, the stock plummeted because Lantronix failed to meet expectations. While we were disappointed along with other investors, we note that revenues and earnings did in fact increase—albeit modestly. Considering the attractive valuation currently, we’ve maintained our position in the company.”
Lantronix Inc. (NASDAQ:LTRX) ranks fifth on our list of the best artificial intelligence stocks to buy under $10.
4. Nerdy Inc. (NYSE:NRDY)
Number of Hedge Fund Holders: 17
Stock Price: $1.67
Nerdy Inc. (NYSE:NRDY) is a leading innovator in online education, providing a platform that connects learners with qualified educators through live instruction. Founded in 2007 and headquartered in St. Louis, Missouri, the company is transforming education by making personalized learning accessible and convenient through the use of artificial intelligence.
Nerdy Inc. (NYSE:NRDY) delivered a positive first quarter in 2024, exceeding its own guidance across key metrics. Revenue reached $53.7 million, reflecting a 9% year-over-year increase. This strong performance translated into a positive operating cash flow of $4.4 million.
The company has reaffirmed its full-year 2024 revenue guidance of $232-$246 million and expects to generate positive operating cash flow. Moreover, adjusted EBITDA is projected to be in the range of $5-$15 million, indicating a significant improvement in its margin.
Analysts see Nerdy Inc. (NYSE:NRDY) as a promising investment with a current rating of Moderate Buy. This assessment is based on evaluations from 7 analysts in the past 3 months. The 12-month price target for Nerdy Inc. (NYSE:NRDY) sits at $4.46, representing a potential upside of over 160%.
3. Nio Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 19
Stock Price: $4.37
Nio Inc. (NYSE:NIO) is a major player in China’s electric vehicle (EV) market, offering a comprehensive ecosystem that extends far beyond just the car itself. The company’s lineup includes premium electric SUVs in both 5 and 6-seater configurations, alongside sleek electric sedans. Nio Inc. (NYSE:NIO) is headquartered in Shanghai.
Nio Inc. (NYSE:NIO) reported positive year-over-year improvements in its first quarter of 2024. The gross profit rose by 200.5% year-over-year to RMB 487.7 million. Furthermore, Nio Inc. (NYSE:NIO) maintains a strong cash position with over RMB 45.3 billion available, ensuring a solid foundation for future investments and growth initiatives.
Analysts are optimistic about Nio Inc.’s (NYSE:NIO) future prospects, giving it a current rating of Moderate Buy. This assessment is based on evaluations from 12 analysts in the past 3 months. The 12-month price target for the company sits at $6.19, representing a potential upside of over 40% from the last closing price.
At the end of Q1 2024, 19 hedge funds reported owning a stake in Nio Inc. (NYSE:NIO), making it one of the best artificial intelligence stocks to buy now.
2. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 27
Stock Price: $2.49
Aurora Innovation, Inc. (NASDAQ:AUR) is a leading self-driving technology company headquartered in Pittsburgh, Pennsylvania. Founded in 2017, the company’s mission is to revolutionize transportation with the Aurora Driver.
In Q1 2024, Aurora Innovation, Inc. (NASDAQ:AUR) beat the earnings per share estimates by 44%. The company has surpassed the EPS estimates in the last four quarters.
Aurora Innovation, Inc. (NASDAQ:AUR) also reported a decrease in operating expenses for Q1 2024 compared to last year. Research and development costs dropped to $166 million from $716 million, and selling, general, and administrative expenses decreased to $27 million from $119 million.
Analyst sentiment on Aurora Innovation, Inc. (NASDAQ:AUR) stock is positive, with a 12-month average price target of $6. This represents a potential upside of over 140% from the current price levels.
Aurora Innovation, Inc. (NASDAQ:AUR) was held by 27 hedge funds at the end of the first quarter of 2024.
1. Clarivate Plc (NYSE:CLVT)
Number of Hedge Fund Holders: 28
Stock Price: $2.47
Clarivate Plc (NYSE:CLVT) is a prominent global information services provider founded in 1864 and headquartered in London, UK. The company offers a comprehensive range of information tools and services that enable organizations across diverse industries to make informed decisions.
Clarivate Plc’s (NYSE:CLVT) first-quarter 2024 results demonstrated continued profitability with adjusted net income remaining positive at $103.5 million. Moreover, the company’s focus on recurring revenue streams is paying off, with subscription revenue experiencing a positive year-on-year growth of 2.4%.
Furthermore, Clarivate Plc (NYSE:CLVT) also maintains a healthy cash flow position. Looking ahead, the company’s focus on growing its subscription base and managing working capital efficiently positions it for continued success.
Clarivate Plc (NYSE:CLVT) has received a consensus rating of Moderate Buy. The average analyst price target for the stock is $6, suggesting a decent upside potential. Of the 920 hedge funds tracked by Insider Monkey at the end of Q1 2024, 28 funds reported owning a stake in Clarivate Plc (NYSE:CLVT).
While we acknowledge the potential of Clarivate Plc (NYSE:CLVT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Clarivate but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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