10 Best Artificial Intelligence Stocks Under $50 According to Hedge Funds

7. Lantronix, Inc. (NASDAQ:LTRX)

Number of Hedge Fund Holders: 13

Lantronix, Inc. (NASDAQ:LTRX) is a tech company that specializes in Internet of Things (IoT) solutions and provides connectivity, compute, and software technologies to enable devices to connect and communicate securely. It’s like a bridge between these devices and the online world. It is used by businesses in manufacturing, automotive, retail, and financial services sectors.

In FQ2 2024, the company recorded $41.2 million in revenue, with a 25% year-over-year growth. The earnings per share were $0.11, also exceeding expectations by $0.01. IoT System Solutions revenue alone saw a 91% year-over-year increase.

Lantronix, Inc. (NASDAQ:LTRX) is expanding in the smart grid and automotive sectors through solutions for interactive displays and digital cockpits. It combines edge computing devices with its Percepxion IoT software to make user-friendly AI for businesses. Percepxion IoT software integrates AI with IoT technologies, allowing users to make decisions using real-time data in industries like defense and healthcare.

Recently, it signed an agreement with 180 Degree Capital, which included the nomination of directors, Derhacobian and Palatnik. The agreement is initially set to expire before the 2025 stockholder nomination deadline and will be extended only if certain conditions are met by then. Nonetheless, such strides by Lantronix, Inc. (NASDAQ:LTRX) make it one of the best AI stocks to buy right now.

13 hedge funds hold this company as of June 30, with First Eagle Investment Management being the highest shareholder, with a position of $3,036,081.

Wasatch Micro Cap Value Strategy stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its first quarter 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.”