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In the ever-evolving world of stock investments, discovering the “Best AI Stocks Under $10” can be challenging, especially for those seeking small-cap gems with enormous growth potential. Amid a fluctuating market characterized by both bull and bear runs, the allure of affordable equities under $10 has steadily increased. As the capitalization game plays out on the grand stage, investors often look for undervalued stocks with enticing earnings per share figures.
These low-priced equities offer a unique opportunity for investors with diverse risk tolerances and trading strategies. They’re often the small companies that fly under the radar yet can yield substantial returns if chosen wisely. In an era where market volatility can resemble an intraday rollercoaster ride, the appeal of AI stocks trading at a relative discount to their sector peers cannot be overstated.
In this article, we’ll explore the world of small-cap, inexpensive AI stocks and help you develop a winning investment strategy to harness the full potential of these hot-value stocks in your brokerage account. We’ll navigate the turbulent waters of the $10 world, evaluating the unique risks and rewards that come with investing in commodities, biotech, and other industries, all with a price tag under $10.
Top 10 Best Artificial Intelligence Stocks Under $10 in 2023
Recor Systems
Top 10 Artificial Intelligence Stocks Under $10
Rekor Systems is one of the best stocks to invest in for those who are looking for potential value stocks. The company is a prominent player in the AI-driven edge computing and machine learning solutions sector and has positioned itself as a key player in security and surveillance. The stock market is bullish about this penny stock as despite market volatility, the company has gained around 193% since the past year, and its second-quarter results for the year were also noteworthy, highlighting significant growth in revenues, overall performance obligations, recurring revenue, as well as total contract value.
FiscalNote
FiscalNote is a leading AI-powered platform that provides real-time government risk and regulatory intelligence. Using advanced data analytics, the company offers businesses and organizations valuable insights into policy changes and regulatory developments that could impact their operations. The stock is undervalued, having lost around 68% since the beginning of the year and currently having a market capitalization of $265.44 million. However, the news of its recently introduced FiscalNote Risk Connector Product expansion is promising and can help it to rebound its valuation. It can be an excellent buy for traders who want to invest in small-cap stocks capable of delivering outsized returns in the future.
Nerdy
Nerdy is an emerging player in the AI-powered education technology sector. The company provides personalized and adaptive learning experiences for students of all ages using artificial intelligence and data analytics. Nerdy has surged nearly 60% over the past year, becoming one of the most attractive penny stocks to beat this recession-filled bearish market. It has already established itself as a critical facilitator of remote education, particularly during challenging times of the pandemic, and its continuous commitment towards enhancing learning outcomes through technology-driven solutions further proves it can outperform the market shortly, delivering profitable outcomes for shareholders.
Himax Tech
Himax Technologies is a prominent semiconductor solution provider that has successfully integrated AI technologies into its product portfolio. Having lost around 8% since the beginning of this year, the stock currently sells around 15 times its earnings, which is quite good relative to the global market. Moreover, the company is also suitable for dividend lovers as it boasts a dividend yield of 8.25% and an attractive payout ratio of more than 90%. Thus, it brings excellent opportunities for traders looking to capitalize on the highly demanding AI-driven semiconductor solutions.
AudioEye
AudioEye is a leading technology company specializing in digital accessibility solutions powered by AI. Through its innovative platform, the company allows businesses to create digital content accessible to individuals with disabilities, ensuring compliance with accessibility standards and regulations. Its platform provides various accessibility tools, including alternative text, closed captioning, content organization, keyboard input, subtitling, and warnings. The company’s latest financials aligned with the market’s expectations, although the EPS came at a loss of 2 cents per share. The stock has enormous growth potential in the coming times as it has a solid work pipeline to help it capitalize on new accessibility rules from the Department of Justice.
Lantronix
Lantronix is a renowned secure data access and management solutions provider for IoT and AI applications. The company facilitates seamless data transmission and management, enabling businesses to harness the power of AI in their operations through its innovative portfolio of connectivity and networking products. The company’s offerings can benefit a diversified range of industries, including industrial automation, healthcare, and transportation. The stock has been subjected to high volatility over the past months; however, it can be a great buy as it has an expected revenue and earnings growth rate of 32.5% and 94%, respectively, for the current year (ending June 2024), which can drive the stock price higher.
Bigbear.AI
BigBear.AI is a leading provider of advanced analytics and artificial intelligence solutions, catering primarily to the defense and national security sectors. The company enables government agencies and organizations to enhance their situational awareness and operational efficiency through actionable insights and data-driven decision-making tools. Since its debut on the NASDAQ, the stock price has fallen from more than $9 per share to less than $2. However, its latest financials showed significant improvement, which bodes well for its future business. Considering its solid customer base and significant work backlog, the market believes the company is positioned to be a leader in AI-driven data analytics.
Lantern Pharma
Lantern Pharma is a biotechnology company that utilizes AI and machine learning to develop precision oncology products and treatments. The company intends to accelerate the development of personalized cancer therapies by leveraging advanced data analytics, thus improving patient outcomes and reducing drug development timelines. The company uses AI to identify biomarkers and predict treatment responses, fostering the development of targeted and efficient cancer treatments. Notably, the company received a month back FDA clearance to bring its LP-184 candidate into Phase 1 clinical trials to test its effectiveness against advanced solid tumors and brain cancers. Besides, it also presented data highlighting the anti-tumor potency of its LP-284 candidate, which targets non-Hodgkin’s lymphomas.
SoundHound
SoundHound is a pioneering music recognition and voice-enabled AI technology company famous for its advanced sound recognition capabilities. Its platform lets users discover music and interact with various applications using voice commands. Besides, it also presents voice-enabled AI interfaces for businesses and organizations. The market believes SoundHound has much room for continued growth as its automaker client list needs to be completed, and its voice control platform’s foray into food service and general retail stores has only just begun. So, it can be an attractive buy for investors now.
SES AI
SES AI Corporation is engaged in developing and producing high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company is a global leader in this segment at the present times. SES AI had announced that they will be expanding into Urban Air Mobility (UAM) and drone applications, which, in addition to EVs, are ideal end-markets for their high energy and power density Li-Metal battery. These two verticals represent the company’s early commercialization opportunities and can potentially support its cash flows in the coming times.
Conclusion
These small-cap gems have the potential to outperform their larger counterparts, particularly in a bullish environment. The allure of affordable equities is undeniable, especially for those who have witnessed the power of earnings growth in their portfolios. As the stock market continues to exhibit its characteristic volatility, the significance of diversifying one’s investment portfolio with undervalued AI stocks cannot be overstated.
In times of recession, rate hikes, or a stock market sell-off, the resilience of these small-cap equities is a testament to their strength. With a diversified portfolio that includes the best stocks under $10, investors can confidently navigate market volatility. As Warren Buffett once advised that it’s wise to be fearful when others are greedy and greedy when others are fearful, and these undervalued AI stocks may be the perfect opportunity to heed his words.
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