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

4. Lemonade (NYSE:LMND)

Number of Hedge Fund Holders: 17

Lemonade (NYSE:LMND) is a digital insurance company that uses AI to streamline the insurance process, by offering a variety of insurance products in many countries for homeowners, renters, pets, and term life. The goal is to make insurance more accessible, affordable, and transparent.

The company generated a revenue of $122 million, up 16.63% year-over-year, in Q2 2024. The loss per share was $0.81. It exited the quarter with over 2 million customers.

Despite industry-wide elevated CAT (catastrophic events) losses, the company’s loss ratio improved to 79%. Management achieved this by focusing on products with lower CAT exposure (like pet and renters insurance), geographic diversification (by going to Europe), and strategic home insurance placement. It also announced a contribution of over $2 million to 43 nonprofits, marking its 8th consecutive year of giving back and reflecting its commitment to social impact.

The company is leveraging AI at every stage of the customer journey and internal operations to drive efficiency. Lemonade’s (NYSE:LMND) GenAI can handle 30% of customer-service interactions without human intervention. Management announced plans for auto expansion in the next 18 months. Such ventures make Lemonade (NYSE:LMND) one of the best AI stocks to buy.

As of June 30, 17 hedge funds are long LMND. D E Shaw is the biggest shareholder with a stake worth $16,328,137.