In this article, we will discuss the 10 Worst Artificial Intelligence Stocks to Buy Under $10.
With technology evolving at a dynamic speed, many companies have changed their way of carrying out operations as they focus on integrating AI into their complex and day-to-day activities. Integration of AI into business operations requires significant investment in infrastructure and specialized talent. Experts believe that 2022 was the year in which generative artificial intelligence (AI) exploded in the public’s consciousness, and in 2023, the technology started to take root in the business world.
Therefore, 2024 and the upcoming years are expected to be critical years for the future of Al, with researchers and enterprises planning to integrate this revolutionary technology into their operations. Some of the current AI trends that are expected in the upcoming years include multi-modal Al, smaller language models and open-source advancements, GPU shortages, cloud expenses, regulation, copyright, and ethical AI concerns, among others.
Surge in Al Adoption
As per the McKinsey Global Survey on AI, ~65% of respondents have highlighted that their organizations continue to use gen AI, nearly double the percentage compared to the survey conducted earlier. Organizations have been seeing strong benefits from the use of generative AI, reporting both cost decreases and revenue jumps in the segments using AI technology.
The interest in gen-AI seems to have brightened the spotlight. McKinsey mentioned that, for the previous 6 years, adoption of AI by respondents’ organizations was hovering at ~50%. However, this year, the survey revealed that adoption increased to ~72%. Notably, the interest has been global in scope. The company’s 2023 survey highlighted that AI adoption didn’t reach 66% percent in any region. However, this year over two-thirds of respondents in nearly every region mentioned that their organizations are deploying this transformative technology. Industry-wise, the strongest increase was seen in professional services.
AI’s rapid evolution and its potential to shape the future continue to revolutionize several industries throughout the globe. As per a survey published on Forbes Advisor, the most commonly used AI cases in businesses consist of customer relations, cybersecurity, fraud management, digital personal assistants, inventory management, content production, and others. When discussing leveraging the top AI trends, businesses continue to rely on predictive analytics to make strategic decisions. For example, using predictive analytics in the manufacturing industry can help in predicting unexpected machine failures and costly breakdowns.
Another factor because of which AI has seen increased adoption is the deployment of multi-modal Al. It leverages machine learning trained on multiple modalities, like speech, images, video, and traditional numerical data sets. As a result, it helps in creating holistic and human-like cognitive experiences.
As a result of increased adoption, Al continues to see strong global investments.
Investments in Al
Al investments have been ramping up at an unmatched speed. As per Goldman Sachs Economic Research, global investment in AI technologies should touch $200 billion by 2025. Making investments in generative AI provides potential economic growth and improves labor productivity by ~1% annually. Additionally, the investment in AI can peak as high as ~2.5% to ~4% of GDP in the US and ~1.5% to ~2.5% in other AI leaders.
Global corporate investment in AI saw a strong increase over the past decade. A Stanford University analysis estimated that the sum of assets and acquisitions from minority stakes, private investments, and public offerings came in at $934.2 billion from 2013 to 2022. Moreover, recent investment peaked in 2021, reaching ~$276.1 billion with the evolution of ChatGPT.
As per EY’s recent survey, ~30% of respondents highlighted that their business is planning to invest at least $10 million in AI next year. This demonstrates an increase from the current level of 16%. With the transition to the next phase of full-scale AI integration, leaders are required to develop a holistic strategy that recreates the entire enterprise ecosystem to create an AI-centric business model.
Source: unsplash
Our methodology
We compiled an initial list of 25 possible stocks by sifting through online rankings and ETFs. We then picked the 10 stocks that were the least popular among hedge funds and were trading at less than $10 per share. Finally, the stocks were ranked in the descending order of their hedge fund sentiment, as of Q2 2024.
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 Worst Artificial Intelligence Stocks to Buy Under $10
10) Alight, Inc. (NYSE:ALIT)
Number of Hedge Fund Holders: 42
Share Price As On September 19: $7.36
Alight, Inc. (NYSE:ALIT) offers cloud-based integrated digital human capital and business solutions. Alight LumenAI is its next-generation artificial intelligence (AI) engine which bolsters the Alight Worklife platform.
Bears believe that Alight, Inc. (NYSE:ALIT)’s ongoing transformation and leadership changes might weigh over its stock price moving forward. The company’s transition was complicated by a change in its chief executive. The CEO transition brings uncertainty surrounding Alight Solutions. Alight, Inc. (NYSE:ALIT) announced a decision to sell its payroll and professional services business. This ultimately brought significant uncertainty regarding the profile and growth of its core business.
In 2Q 2024, the company’s business was impacted by lower volumes, net commercial activity, and project revenue within its Employer Solutions segment. Also, the wind-down of its Hosted business operations weighed over its performance. Its revenue declined 4.1% to $538 million against $561 million in the prior-year period. The company expects its non-recurring project revenues to fall 20% in 2H 2024.
On the other hand, Wall Street seems to be quite optimistic given the recent completion of its cloud migration transformation. As a result of this completion, Alight, Inc. (NYSE:ALIT) should achieve $75 million in annualized savings. Now, the company focuses on its technology-rich benefit services business. There are expectations that the company will see double-digit annual recurring revenue (ARR) bookings growth for the latter half of 2024.
Alight, Inc. (NYSE:ALIT)’s adjusted EBITDA margin should expand to ~28%, thanks to the annual cost savings from the cloud migration. Also, the company continues to reorganize its go-to-market structure to target strategic accounts. This should help it in driving more deals.
DA Davidson reaffirmed a “Buy” rating on the shares of Alight, Inc. (NYSE:ALIT), giving it a price target of $12.00 on 20th June. Insider Monkey’s 2Q 2024 data revealed that the company was held by 42 hedge funds. Meridian Funds, managed by ArrowMark Partners, released its second quarter 2024 investor letter. Here is what the fund said:
“Alight, Inc. (NYSE:ALIT) is a leading cloud-based human capital technology provider of enterprise-level software that helps businesses and their employees manage critical human resources functions. Through its investments in software and automation, Alight has built a distinct advantage that allows its customers to deliver HR services at a much lower cost while providing a better experience for employees. We slightly trimmed the position early in the quarter when the stock appreciated on the announced sale of a non-strategic business unit and news that an activist investor had initiated a position. Later in the period, the stock declined when Alight announced weaker-than-expected results. We believe the softer quarter will prove to be an isolated event.”
9) Margeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 35
Share Price As On September 19: $5.18
Margeta, Inc. (NASDAQ:MQ) is engaged in developing and publishing a commerce payments platform. In 2023, the company unveiled Margeta Docs Al, which is an Al-powered external-facing question-and-answer tool. This helps the users quickly navigate the Margeta Docs site, integrate with its APIs more efficiently, and reduce the overall time to value for the customers.
Margeta, Inc. (NASDAQ:MQ)’s stock is being closed-tracked by the bears as they believe that the recent decline in gross profit can be a concern. In 2Q 2024, it saw a gross profit of $79 million, reflecting a fall of 6% YoY, mainly because of the new pricing for Cash App. Moreover, even though Margeta, Inc. (NASDAQ:MQ) saw growth in TPV and strategic advancements, it missed expectations in net revenue and gross profit. Also, the company’s founder resigned as CEO in August 2022. Later, he resigned from the board as Executive Chairman in June 2024, raising concerns about the growth outlook. Also, Block, Inc. (SQ), the company’s largest customer, renewed the relationship in the prior year in a 4-year contract which consisted of a 40% lower take rate. This impacted Margeta, Inc. (NASDAQ:MQ)’s growth profile.
On the other hand, market experts believe that Margeta, Inc. (NASDAQ:MQ) should see strong growth over the long term as it is positioning itself for healthy future growth via strategic partnerships and technological advancements. Margeta, Inc. (NASDAQ:MQ) is focusing on the financial services sector, mainly in embedded finance. This, together with its expansion in Europe demonstrates a long-term strategy targeted at capturing market share and achieving profitability.
Considering the upcoming holiday season, Margeta, Inc. (NASDAQ:MQ) expects a shift towards BNPL and a healthy upside from existing customer growth and cross-selling capabilities. Its presence in Europe, and the upcoming launch of the Power Credit platform (as highlighted in 2Q 2024 earnings call), should support it in international expansion and innovation in financial technology.
Susquehanna reiterated a “Positive” rating on the company’s shares, giving a price target of $9.00 on 6th August. As per Insider Monkey’s 2Q 2024 data, Margeta, Inc. (NASDAQ:MQ) was held by 35 hedge funds.
8) Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 29
Share Price As On September 19: $5.56
Applied Digital Corporation (NASDAQ:APLD) is a designer, builder, and operator of next-gen digital infrastructure, which is designed for Artificial intelligence (AI) and High-Performance Computing (HPC) applications, cloud services, and data center hosting.
Applied Digital Corporation (NASDAQ:APLD)’s stock price might be impacted due to its considerable debt obligations, with $67.2 million in debt repayments made in 2024. Despite securing loans and raising capital, its debt-to-equity ratio indicates increased reliance on borrowing. In early 2024, Applied Digital Corporation (NASDAQ:APLD) highlighted that it was experiencing installation delays as a result of networking components that were not delivered. Most recently, the company saw a massive power outage at its 180 MW Ellendale facility because of bad transformers. As a result of such issues, selling the Bitcoin mining business to Marathon Digital wasn’t a surprise, and might be a signal of distressed business.
On the other hand, Applied Digital Corporation (NASDAQ:APLD) continues to make strides in developing its cloud services and data center hosting businesses. Moreover, it continues to work on securing financing and finalizing lease agreements for its high-performance computing (HPC) data center campuses. While the company was able to execute a letter of intent (LOI) with a U.S. hyperscaler for 400 megawatts at the Ellendale campus, it expects revenue growth over upcoming quarters. Its cloud AI business seems to be well-positioned for growth with the right financing structure. The company anticipates sequential improvements in its revenues as it enters 1Q 2025.
In FY 2024, Applied Digital Corporation (NASDAQ:APLD) saw its revenues increase by $110.2 million, or 199%, from $55.4 million in FY 2023 to $165.6 million in FY 2024. This growth stemmed from increased capacity across its 3 Data Center Hosting facilities.
B.Riley upped its target price on shares of Applied Digital Corporation (NASDAQ:APLD) from $8.00 to $9.00, giving the stock a “Buy” rating on 13th June.
7) Clarivate Plc (NYSE:CLVT)
Number of Hedge Fund Holders: 27
Share Price As On September 19: $6.97
Clarivate Plc (NYSE:CLVT) is an information service and analytics company, which serves the scientific research, intellectual property, and life sciences end-markets. The company’s Data Science team has implemented AI across the portfolio to enhance their tools and solutions. It recently announced an agreement to acquire the substantial majority of assets of MotionHall, which is a Silicon Valley tech start-up catering to the life sciences with industry-vertical AI solutions.
Clarivate Plc (NYSE:CLVT)’s shares have earlier struggled mainly because of high levels of debt as a result of M&A activity over the past couple of years. Also, the lack of sales growth together with pressures on the margins continue to make its outlook uncertain. The company’s operations were impacted mainly by leverage and capital allocation decisions. Moreover, due to macroeconomic factors and product challenges, Clarivate Plc (NYSE:CLVT)’s subscription growth in life sciences and IP segments is expected to be impacted. Apart from increased operating expenses (which might result in lower profit dollars and margin), the impact of divestitures and acquisitions (like Valipat) might weigh over its revenues and profits.
On the other hand, Wall Street believes that Clarivate Plc (NYSE:CLVT) should be aided by a positive turnaround at Derwent with expanded search capabilities. The market is quite optimistic about the launch of new products such as the Epidemiology Intelligence platform. Also, growth in annual contract value (ACV) is expected to be visible next year due to new product releases.
Clarivate Plc (NYSE:CLVT)’s focus is now on a balanced approach to capital allocation, consisting of share repurchases and M&A to drive growth. The expectations of driving profitable growth coupled with its strong ability to control costs relative to its revenue should continue to act as tailwinds for the company. The company’s customers are responding positively to its operational and product improvements, leading to improved renewal rates and new customer wins. This should result in organic growth in 2H 2024. The company is in the portfolios 27 hedge funds, as per Insider Monkey’s 2Q 2024 database.
Investment management company Cove Street Capital recently released its second quarter 2024 investor letter. Here is what the fund said:
“We also added a position in Clarivate Plc (NYSE:CLVT), a data services provider that operates across academic research, intellectual property, and life sciences. We came to the investment from cross-work in another holding, Research Solutions (ticker: RSSS). Ultimately this company sucks in data from participants in the industry, aggregates it, and provides value added services and tools back to those industry participants. The power is in providing customers access to the aggregate. This was a private equity roll-up of a bunch of different data assets that paid too little attention to product innovation, leading to a period of stagnating growth and repeatedly missing guidance. The business of selling many tools and services on a pile of fixed cost assets (data) remains tremendous as can be seen by Clarivate’s mid-to-high 30% EBITDA margins and strong returns on invested capital. With new management and board members in place and 18 months of an “investment cycle” under their belt, we view the risk/reward of CLVT to be favorable at these levels, with a strong upside case if they can reinvigorate growth to their target levels.”
6) Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 19
Share Price As On September 19: $3.26
Sabre Corporation (NASDAQ:SABR), together with its subsidiaries, operates as a software and technology company for the travel industry. Sabre Travel AI™, which has been developed in partnership with Google, introduces a new era of AI in travel technology.
Sabre Corporation (NASDAQ:SABR)’s revenue growth has been volatile in the past mainly because of market share growth, acquisitions, and the COVID-19 pandemic, with revenue significantly below its FY2019 levels. Apart from the concerns around revenues, its margins have been considerably below its historical levels, prompting the top management to raise debt. The company’s net interest expenses went up from $106.1 million in 2Q 2023 to $129.2 million in 2Q 2024. These risks, together with the uncertain economic conditions (primarily related to the travel industry), continue to pose challenges for its margin improvement.
On the other hand, market veterans believe that Sabre Corporation (NASDAQ:SABR) should be supported by its strong competitive position. The company’s product offerings and market position help create a network effect, with a more active marketplace encouraging new entrants, and the capability to get more value from each booking. Sabre Corporation (NASDAQ:SABR) highlighted the potential of SabreMosaic, which can transform the broader airline IT business into a growth sector over the medium to long term. Also, the company does not anticipate a near-term significant financial impact.
Sabre Corporation (NASDAQ:SABR)’s competitive edge in air distribution bookings and its momentum in the Hospitality Solutions business should continue to act as tailwinds. The company has been gaining market share in air distribution bookings and appears to be well-positioned for corporate travel growth.
As per Wall Street analysts, the shares of Sabre Corporation (NASDAQ:SABR) have an average price target of $3.75. By the end of the second quarter, 19 hedge funds had invested in Sabre Corporation (NASDAQ:SABR).
5) DLocal Limited (NASDAQ:DLO)
Number of Hedge Fund Holders: 19
Share Price As On September 19: $8.62
DLocal Limited (NASDAQ:DLO) operates a payment processing platform worldwide. Microsoft and DLocal Limited (NASDAQ:DLO) announced a landmark partnership to integrate cutting-edge Artificial Intelligence (Al) solutions in the Fintech sector.
Bears believe that the shares of DLocal Limited (NASDAQ:DLO) are expected to be impacted by the challenges around the potential for merchant renegotiation, required investments, and volatility in specific markets where the company operates, mainly Argentina and Nigeria. In the recent past, the company’s stock price was pressured mainly because of decelerating growth rates and uncertainty about its foreign fintech businesses. DLocal Limited (NASDAQ:DLO) is also challenged by risks stemming from currency devaluation, mainly in markets such as Nigeria and Argentina. DLocal Limited (NASDAQ:DLO)’s exposure to geopolitical risks might weigh over its business performance.
That being said, experts believe that DLocal Limited (NASDAQ:DLO)’s growth prospects stem from strategic initiatives that are aimed at capitalizing on emerging market opportunities. Its revenues are expected to be aided by a well-diversified merchant and geographic base. Some of the primary tailwinds include its focus on key metrics such as gross profit growth, diversified business verticals, and strong relationships with major tech companies. These drivers are further bolstered by the company’s healthy balance sheet position and strong FCF.
As of June 30, 2024, it had US$531.6 million in cash and cash equivalents, which includes US$186.2 million of own funds and US$345.4 million of merchants’ funds.
The long-term outlook for DLocal Limited (NASDAQ:DLO) is supported by its focus on TPV growth and increasing share of wallet. Also, Wall Street is optimistic about its recent partnership with Microsoft. By offering localised and flexible payment solutions, DLocal Limited (NASDAQ:DLO) will make sure that Microsoft’s customers in emerging markets have access to efficient payment methods.
Polen Capital, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:
“DLocal Limited (NASDAQ:DLO), a payments processing company headquartered in Uruguay saw further weakness after reporting disappointing first quarter results. While payment volumes and revenues grew 49% and 34%, respectively, in 1Q 2024, gross profit only grew 2% due to elevated processing costs. The company has also invested more in building out its scale and functionality, which further weighed on profitability. Longer term, as one of the leading emerging markets payments processing companies, we believe dLocal can continue to see attractive growth and improve profitability under a highly-regarded management team.”
4) SoundHound Al, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 15
Share Price As On September 19: $5.01
SoundHound Al, Inc. (NASDAQ:SOUN) is an innovator of conversational intelligence, offering an independent Voice Al platform that allows businesses throughout industries to deliver high-quality conversational experiences to customers.
SoundHound Al, Inc. (NASDAQ:SOUN) is not a profitable business. In 2023, it saw a net loss of $88.9 million, and in 2Q 2024, its GAAP net loss came in at $37.3 million and its non-GAAP net loss was $14.8 million. SoundHound Al, Inc. (NASDAQ:SOUN) closed 2023 with $84.3 million of debt, and it is not a cash-flow-positive company. Since the company is still at a cash-burning stage, there is a high chance that it will need to spend money on its growth initiatives. This creates a risk for the investors because if the company decides to issue shares, it will lead to a dilution of existing shareholders, and secondary offerings might result in a sharp sell-off.
However, Wall Street analysts are quite optimistic about the company’s growth prospects. This optimism stems from the improvement in gross margins and scaling of revenue. The market experts have expressed confidence in the company’s strategy for revenue growth and cost management. Therefore, they anticipate a move towards operating profitability over time. SoundHound Al, Inc. (NASDAQ:SOUN) saw a strong increase in its cumulative subscriptions and bookings backlog, touching $723.0 million as of June 2024. This is about twice the amount as compared to the previous year.
SoundHound Al, Inc. (NASDAQ:SOUN)’s recent mergers and acquisitions, like SYNQ3 and Amelia Al, placed it in a strong position when it comes to the conversational Al space, enhancing its competitive edge.
Moreover, it has secured contracts with leading EV manufacturers and it focuses on expanding its technology deployment in ~20 markets.
Analysts at Cantor Fitzgerald raised the shares of SoundHound Al, Inc. (NASDAQ:SOUN) from a “Neutral” rating to an “Overweight” rating. They have increased its price objective from $5.00 to $7.00 on 9th August. As per Insider Monkey’s 2Q 2024 database, 15 hedge funds held stakes in the company.
3) IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 12
Share Price As On September 19: $7.72
lonQ, Inc. (NYSE:IONQ) is engaged in the development of general-purpose quantum computing systems in the United States. The company recently announced a collaboration with Zapata to benchmark generative Al techniques on quantum hardware.
Bears believe that the stock price of IonQ, Inc. (NYSE:IONQ) is expected to be impacted by its concerning financial position. The significant increase in its expenses has impacted its overall financial health. In 2Q 2024, its cost of revenue went up from $1.90 million in 2Q 2023 to $5.6 million in the current quarter. The bears believe that IonQ, Inc. (NYSE:IONQ) is investing heavily in research and development, which is the primary reason why this company is operating at a loss. The company’s costs and expenses continue to exceed its revenue, and they are also growing at faster rates compared to its top line. The basic unit of a quantum computer’s power is the qubit, and these remain unstable. Also, creating hardware that has the potential to sustain them long enough can be a serious challenge.
On the other hand, Wall Street believes that IonQ, Inc. (NYSE: IONQ)’s advancements in qubit fidelity and error correction techniques demonstrate strong progress in the quantum computing field. Moreover, optimism prevails around its ongoing projects, including the ARLIS quantum networking contract. Its success in winning federal contracts is attributed to the company’s good product and low error rates.
In 2Q 2024, while the company was able to book $9 million in sales contracts, it increased its 2024 revenue outlook to between $38 million – $42 million. Moreover, the company continues to focus on pursuing strategic partnerships to strengthen its ecosystem and deliver the Tempo system in 2025. Wall Street is optimistic about lonQ, Inc. (NYSE:IONQ)’s commercialization abilities as it extended contracts with AWS to offer quantum computers via Amazon Braket.
As per Wall Street, the shares of IonQ, Inc. (NYSE:IONQ) have an average price target of $10.63. As of the end of 2Q 2024, 12 hedge funds tracked by Insider Monkey reported having stakes in IonQ, Inc. (NYSE:IONQ).
2) Wipro Limited (NYSE:WIT)
Number of Hedge Fund Holders: 11
Share Price As On September 19: $6.47
Wipro Limited (NYSE:WIT) is a company, specializing in IT and computer-related technologies. Its services include software architecture, business intelligence systems, data warehousing, and other related services. The company’s AI Solutions partner with companies to help them transition into intelligent enterprises.
The global demand uncertainty on discretionary technology spending, primarily in the banking, financial services, and insurance (BFSI) clients impacted the industry’s revenue visibility. Verticals other than BFSI have also not been performing as expected. For example, manufacturing is another vertical where the company’s peers have done better. All these factors continue to weigh over Wipro Limited (NYSE:WIT)’s performance.
Moreover, bears believe that Wipro Limited (NYSE:WIT)’s turnaround efforts have a limited impact on its revenue growth. Also, high attrition among the top management continues to concern long-term investors.
On the other hand, Wall Street analysts believe that there are several green shoots available in the consulting business to which Wipro Limited (NYSE:WIT) has exposure via Capco. Also, the company’s cost-optimization measures are expected to pay off in the upcoming quarters. Wipro Limited (NYSE:WIT) might benefit from increased margin expansion. This is because more automated tech solutions tend to decrease the variable costs related to each incremental sale.
Over the long term, Wipro Limited (NYSE:WIT) should benefit from switching costs and intangible assets. Notably, forays into the higher-value realm of industrial engineering should help ensure that Wipro Limited (NYSE:WIT) remains at the forefront of substantial growth trends.
As per Insider Monkey’s 2Q 2024 database, Wipro Limited (NYSE:WIT) was in the portfolio of 11 hedge funds.
1) Rekor Systems, Inc. (NASDAQ:REKR)
Number of Hedge Fund Holders: 9
Share Price As On September 19: $1.22
Rekor Systems, Inc. (NASDAQ:REKR) is a technology company, which provides infrastructure solutions for transportation, public safety, and urban mobility markets. Its platform, Rekor One, is an AI-powered roadway intelligence platform.
The bears believe that Rekor Systems, Inc. (NASDAQ:REKR) is expected to face pressures in the near term mainly because of liquidity issues. Rekor Systems, Inc. (NASDAQ:REKR)’s lack of cash generation and depleting cash reserves, despite potential demand from government-funded infrastructure projects, might weigh over its stock price. As a result of liquidity pressure, the company is prompted to mostly rely on external financing from debt and equity issuances. Recently, the company witnessed challenges, which include delays in unit deployment as a result of hurricanes and the complexities of government contracting processes.
On the other hand, Wall Street analysts opine that Rekor Systems, Inc. (NASDAQ:REKR) should be aided by advancements in strategic partnerships and technology deployments. The company expects profitability in 2024 or early 2025, courtesy of large contracts and improved gross margins. The company targets adding 6,000 – 8,000 sites in the Southeast, potentially making $200 million – $300 million in cash flows. Moreover, Rekor Systems, Inc. (NASDAQ:REKR)’s market presence is expected to further improve considering its partnerships with companies such as SoundThinking, AWS, NVIDIA, and MS2.
Rekor Systems, Inc. (NASDAQ:REKR) remains confident in its continued accelerated growth and is focused on establishing its leadership position in the transportation infrastructure industry. Therefore, new technology deployments, along with strategic partnerships throughout multiple states, should contribute to its expansion plans.
By the end of 2Q 2024, 9 hedge funds were optimistic about Rekor Systems, Inc. (NASDAQ:REKR).
While we acknowledge the potential of REKR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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