5 Best Artificial Intelligence Stocks Under $20 According To Hedge Funds

In this article, we discuss 5 best artificial intelligence stocks under $20. If you want to read our detailed discussion on the AI industry, head over to 11 Best Artificial Intelligence Stocks Under $20 According To Hedge Funds.

5. Lantronix, Inc. (NASDAQ:LTRX)

Share Price as of March 6: $3.9

Number of Hedge Fund Holders: 15

Lantronix, Inc. (NASDAQ:LTRX) is one of the best AI stocks. It offers solutions for video surveillance, infotainment systems, and intelligent substations infrastructure globally. Besides creating their own advanced development kits and hardware designs, Lantronix, Inc. (NASDAQ:LTRX) has collaborated with customers to implement multiple AI/Machine Learning solutions. The company was founded in 1989 and is headquartered in Irvine, California.

On February 8, Lantronix, Inc. (NASDAQ:LTRX) announced results for the second quarter of fiscal year 2024. The company reported a non-GAAP EPS of $0.08, in-line with previous, and a revenue of $37 million, missing estimates by $0.59 million.

According to Insider Monkeys’ fourth quarter database, 15 hedge funds were bullish on Lantronix, Inc. (NASDAQ:LTRX), an increase from 8 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest position holder in the company, with 533,353 shares valued at $3.13 million.

4. NIO Inc. (NYSE:NIO)

Share Price as of March 6: $5.82

Number of Hedge Fund Holders: 20

NIO Inc. (NYSE:NIO) is a Chinese firm involved in the designing, developing, manufacturing, and selling of intelligent electric vehicles, including SUVs and sedans. It is one of the best AI stocks, the company has integrated AI technologies, like advanced driver assistance systems and autonomous driving features, into their vehicles. NIO Inc. (NYSE:NIO)’s cars also feature NOMI, an AI assistant that can perform tasks such as adjusting the car’s settings, providing directions, and answering questions.

On March 5, NIO Inc. (NYSE:NIO) reported a Q4 non-GAAP EPADS of -$0.39, falling short of market consensus by $0.07, and a revenue of $2.41 billion, outperforming estimates by $70 million.

According to Insider Monkeys’ fourth quarter database, 20 hedge funds were bullish on NIO Inc. (NYSE:NIO), compared to 18 funds in the preceding quarter. Jos Shaver’s Electron Capital Partners held a significant position in the company, with 4.43 million shares worth $40.18 million.

Here is what Horos Asset Management has to say about NIO Inc. (NYSE:NIO) in its Q1 2022 investor letter:

“At the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information. While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. Other entities, such as the electric vehicle manufacturer Nio, have just started trading on this stock market.”

3. Nerdy, Inc. (NYSE:NRDY)

Share Price as of March 6: $2.96

Number of Hedge Fund Holders: 21

Ranked 3rd on our list of the best AI stocks under $20, Nerdy, Inc. (NYSE:NRDY) runs a platform for live online learning. Their platform uses technology, including artificial intelligence, to connect students, parents, and users of all ages with tutors, instructors, and experts. This setup benefits both learners and educators. Established in 2007, Nerdy, Inc. (NYSE:NRDY) is based in Saint Louis, Missouri.

On February 27, Nerdy, Inc. (NYSE:NRDY)’s Q4 non-GAAP adjusted net earnings were $2.2 million. The company’s revenue came in at $55.1 million, beating Wall Street estimates by $0.33 million.

According to Insider Monkeys’ fourth quarter database, 21 hedge funds were bullish on Nerdy, Inc. (NYSE:NRDY), down from 22 funds in the previous quarter. 

Here is what Baron Opportunity Fund has to say about Nerdy, Inc. (NYSE:NRDY) in its Q4 2021 investor letter:

“Nerdy Inc. operates a digital learning platform in the U.S. that provides live online tutoring in multiple formats, including one-on-one and small-to-large groups. The offering includes K-12 courses, college, professional, GMAT, SAT, and other prep. Though bookings for future classes remained healthy, many sessions were delayed from the fourth quarter as families opted to take longer holiday trips and kids resumed after school activities, making it more difficult to schedule tutoring, resulting in weaker-than-projected recognized revenues. Given near-term uncertainty, a short-term tax loss, and other investment opportunities, we chose to exit the position.”

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

Share Price as of March 6: $3.78

Number of Hedge Fund Holders: 23

Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) offers AI-based weapons detection for security screening globally. Their product lineup includes Evolv Express, a touchless security screening system that identifies firearms, improvised explosive devices, and tactical knives; as well as Evolv Insights, which provides access to data and insights on visitor flow, system performance, and alarms, among other metrics, for different business needs. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) is one of the best AI stocks.

On February 29, Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) announced a Q4 non-GAAP EPS of -$0.07 and a revenue of $21.82 million, outperforming Wall Street estimates by $0.01 and $2.06 million, respectively.

According to Insider Monkeys’ fourth quarter database, 23 hedge funds were bullish on Evolv Technologies Holdings, Inc. (NASDAQ:EVLV), in contrast to the prior quarter when 26 funds had invested in the stock. 

1. Sprinklr, Inc. (NYSE:CXM)

Share Price as of March 6: $13.26

Number of Hedge Fund Holders: 31

Sprinklr, Inc. (NYSE:CXM) offers cloud-based software solutions for businesses worldwide. The company’s Unified Customer Experience Management platform is designed to analyze customer experience data across different channels and stages of the customer journey. It is one of the best AI stocks. One of their products, Sprinklr Service, is a cloud-based contact center platform powered by AI. It helps customer service agents assist customers through digital, social, and voice channels.

On December 6, Sprinklr, Inc. (NYSE:CXM) announced results for the third quarter of fiscal year 2024. The company reported a non-GAAP EPS of $0.12 and a revenue of $186.3 million, outperforming Wall Street estimates by $0.05 and $5.88 million, respectively.

According to Insider Monkeys’ fourth quarter database, 31 hedge funds were bullish on Sprinklr, Inc. (NYSE:CXM), up from 29 funds in the last quarter. Eric Bannasch’s Cadian Capital is the biggest shareholder of the firm, with 14.56 million shares valued at $175.3 million.

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