In this article, we discuss the 5 best AI stocks under $50. If you want to read our detailed analysis of the Artificial Intelligence industry, go directly to the 10 Best AI Stocks Under $50.
Best AI Stocks Under $50
5. Lumen Technologies, Inc. (NYSE: LUMN)
Number of Hedge Fund Holders: 29
Share Price as of May 12, 2021: $13.95 per share
Total Value of Hedge Fund Holdings: $772,132,000
Ranking 5th in our list of the 10 best AI stocks under $50 is Lumen Technologies, Inc. (NYSE:LUMN). In December 2020, the Louisiana-based communication and network company entered into a partnership with Itential, the industry pioneer in intelligent multi-domain network automation. The partnership allowed the automation platform to be part of Lumen network’s consulting services, enabling users to be more productive and efficient.
Lumen Technologies, Inc. (NYSE:LUMN) has a market cap of $15.4 billion and operating revenue in the full year 2020 of $20.71 billion. In January, Morgan Stanley analyst Simon Flannery downgraded LUMN (NYSE: LUMN) from Equal-weight to Underweight with a price target of $12.10.
There were 29 hedge funds reported owning stakes in Lumen Technologies, Inc. (NYSE:LUMN) at the end of the fourth quarter, down from 31 funds a quarter earlier. The total value of these stakes at the end of Q4 is $772 million.
Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned that good changes in the company’s market composition benefited LUMN in its Q1 2021 investor letter:
“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”
4. Cloudera, Inc. (NYSE: CLDR)
Number of Hedge Fund Holders: 29
Share Price as of May 12, 2021: $11.49 per share
Total Value of Hedge Fund Holdings: $1,005,135,000
California-based enterprise data cloud company Cloudera, Inc. (NYSE:CLDR) ranks 4th in our list of 10 best AI stocks under$50. The company was founded in 2008 and has over 9,000 company users. The company uses enterprise artificial intelligence to accelerate the time of the performance, both technologically and practically. On February 19, Barclays analysts maintained an Equal-Weight rating on Cloudera and raised the price target to $19. Cloudera, Inc. (NYSE:CLDR) has a market cap of $3.37 billion. Shares of CLDR increased 44% over the past twelve months.
There were 29 hedge funds that reported owning stakes in Cloudera, Inc. (NYSE:CLDR) at the end of the fourth quarter, down from 31 funds a quarter earlier. The total value of these stakes at the end of Q4 is $1.005 billion.
3. Vishay Intertechnology, Inc (NYSE: VSH)
Number of Hedge Fund Holders: 31
Share Price as of May 12, 2021: $22.46 per share
Total Value of Hedge Fund Holdings: $455,504,000
Ranking 3rd in our list of the 10 best AI stocks under $50 is American manufacturer of semiconductors and electronic components Vishay Intertechnology, Inc (NYSE:VSH). The Pennsylvania-based manufacturer produces the AI-based microBRICK Family, a simple solution to creating efficient high-density DC/DC converters. In 2020, China awarded mircoBRICK with the Artificial Intelligence (AI) Innovation Excellence Award in the “Intelligent Sensor / Storage / Power Management” section.
Vishay Intertechnology, Inc (NYSE:VSH) has a market cap of $3.25 billion. In 2020, Vishay Intertechnology, Inc’s revenue came in at $2.502 million. Shares of VSH rose 55% over the past twelve months. In April, Loop Capital upgraded Vishay Intertechnology to Buy with a price target of $30.
There were 31 hedge funds that reported owning stakes in Vishay Intertechnology, Inc (NYSE:VSH) at the end of the fourth quarter, up from 27 funds a quarter earlier. The total value of these stakes at the end of Q4 is $455 million.
2. Palantir Technologies Inc. (NYSE: PLTR)
Number of Hedge Fund Holders: 38
Share Price as of May 12, 2021: $18.89 per share
Total Value of Hedge Fund Holdings: $1,902,514,000
Ranking 2nd in our list of 10 best AI stocks under $50 is Palantir Technologies Inc. (NYSE:PLTR). The Colorado-based data analytics company Palantir Technologies Inc. (NYSE:PLTR) was founded in 2003. In 2020, the US Army Research Laboratory awarded Palantir Technologies Inc. (NYSE:PLTR) a $91.2 million two-year contract for artificial intelligence and machine learning research and development.
Palantir Technologies Inc. (NYSE:PLTR) has a market cap of $35.2 billion. Palantir Technologies Inc.’s revenue in the first quarter of 2021 came in at $341 million. Shares of PLTR decreased 19% over the past twelve months. On April 23, Wolfe Research initiated Coverage on Palantir Technologies Inc. with a Peer Perform rating with a price target of $23.
There were 38 hedge funds that reported owning stakes in Wells Fargo & Company at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $1.90 billion.
Guardian Fund mentioned that Palantir Technologies Inc.’s rate at which new customers come on board is improving, and sales are expected to rise faster than expenses in its Q4 2020 investor letter:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
1. Sonos, Inc. (NASDAQ: SONO)
Number of Hedge Fund Holders: 43
Share Price as of May 12, 2021: $31.49 per share
Total Value of Hedge Fund Holdings: $603,252,000
Topping the 10 best AI stocks under $10 is Sonos, Inc. (NASDAQ:SONO). The California-based developer and manufacturer use artificial intelligence to keep its audio platform aggressive on the market. On February 11, Morgan Stanley maintained its Overweight rating on Sonos and raised the price target to $45. Sonos, Inc. has a market cap of $3.7 billion. Sonos, Inc.’s GAAP net income came in at $79.2 million in 2020. Shares of SONO surged 246% over the last twelve days.
There were 43 hedge funds that reported owning stakes in Sonos, Inc. (NASDAQ:SONO) at the end of the fourth quarter, up from 32 funds a quarter earlier. The total value of these stakes at the end of Q4 is $603 million.
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