12 Cheap AI Stocks to Buy in 2025

10. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)

Analyst Upside (as of January 27): 37.16%

No. of Hedge Fund Holders: 18

Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) provides AI-driven touchless security screening systems. The company’s products use advanced sensors and cloud services to uncover high-risk weapons while ignoring harmless objects. The company is based on a multi-year security-as-a-service subscription model, providing predictable revenue and growth opportunities. The company sells its products across diverse sectors including education, healthcare, and entertainment venues.

On January 24, Craig-Hallum increased its price target on EVLV from $5.75 to $6.75 and kept a Buy rating on the shares. The analyst raised the price target after the company issued an unequivocally positive business update in Q4 2024. During the fourth quarter of 2024, the company deployed over 6,000 Evolv Express units internationally, with 470 new multi-year subscriptions activated. The company also added nearly 60 new customers across various industries. The company continues to expand as the demand for its products remains stable. Evolv Technologies Holdings introduced a new AI-based weapons detection solution for bags, Evolv eXpedite, which booked its first orders in Q4.

Analysts pointed out that the higher-than-expected unit deployments should calm investors about the company’s financial restatements and regulatory scrutiny of its operations. To add to this, Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) reported that not a single customer has unsubscribed their service following the FTC settlement. This development is considered an endorsement of customer satisfaction with the company’s offerings.

Evolv Technologies Holdings ended the fourth quarter of 2024 with zero debt and almost $52 million in cash and cash equivalents, further strengthening the firm’s balance sheet.