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

6. Nerdy, Inc. (NYSE:NRDY)

Number of Hedge Fund Holders: 14

Nerdy, Inc. (NYSE:NRDY) is an online learning platform that connects students with expert tutors, whether they want to learn one-on-one, in groups, or through self-study. The company provides a virtual classroom with a mission to make learning easy and accessible through technology. In August, The founder, Charles Cohn bought $9.7 million worth of the company’s shares, increasing his ownership to 85%.

For Q2 2024, Nerdy, Inc. (NYSE:NRDY) reported revenue of $51 million, with a 4.39% year-over-year growth. The loss per share was $0.08. Management reported that 72% of the total revenue came from Consumer Learning Membership subscriptions. Number of customers also grew 12% year-over-year.

The company has a flagship platform under the name of Varsity Tutors, where students can access over 3,000 subjects. It merged all school institutional customers onto a single platform, providing a unified learning experience. During Q2, the institutional business segment of the company brought an additional 1.1 million students on board and enabled access to Varsity Tutors for about 600 school districts.

With instances of recent insider buying and its growing market share on the institution side, NRDY is a good AI stock under $50 to consider buying. The EdTech market is expected to grow at a compound annual growth rate of 13.4% from 2024 to 2030 (reported by Grand View Research) and we can expect Nerdy (NYSE:NRDY) to deliver higher returns in the upcoming years. The stock was held by 14 hedge funds at the close of Q2 2024.