The Artificial Intelligence (AI) stocks market is experiencing exponential growth, presenting investors with potential opportunities to capitalize on the industry’s potential. In a market characterized by both bull and bear runs, affordable equities under $10 have become increasingly attractive. Investors often seek undervalued stocks with high earnings per share figures to maximize their returns.
Small-cap AI stocks offer diverse risk tolerances and trading strategies for investors looking for gems with good growth potential. While these small companies, operating in industries such as commodities and biotech, may fly under the radar, they have the potential to yield substantial returns.
The allure of AI stocks trading at a relative discount to their sector peers cannot be overstated, especially in a volatile market. Here are our top picks for the best affordable AI stocks under $10:
1. Rekor Systems: A prominent player in AI-driven edge computing and machine learning solutions, Rekor Systems is positioned as a key player in security and surveillance. Despite market volatility, the company has gained about 193% in the past year. Its second-quarter results showcased growth in revenues, performance obligations, recurring revenue, and total contract value.
2. FiscalNote: As a leading AI-powered platform providing real-time government risk and regulatory intelligence, FiscalNote offers valuable insights into policy changes and regulatory developments. While the stock has experienced a decline of approximately 68% since the beginning of the year, the introduction of its FiscalNote Risk Connector Product expansion holds promise and may contribute to its rebound.
3. Nerdy: Emerging in the AI-powered education technology sector, Nerdy provides personalized and adaptive learning experiences through AI and data analytics. With its value rising nearly 60% over the past year, the company has become one of the most attractive penny stocks. Its commitment to enhancing learning outcomes through technology-driven solutions sets it apart in the market.
4. Himax Tech: As a semiconductor solution provider, Himax Technologies successfully integrates AI technologies into its portfolio. While the stock has experienced a loss of around 8% since the beginning of 2023, it currently sells at approximately 15 times its earnings, making it favorable for the global market. Moreover, with a dividend yield of 8.25% and a payout ratio of over 90%, it also appeals to dividend investors.
5. AudioEye: Specializing in digital accessibility solutions powered by AI, AudioEye allows businesses to create inclusive digital content accessible to individuals with disabilities. Although the company’s latest earnings per share showed a loss of 2 cents per share, its solid work pipeline and compliance with federal accessibility rules make it a strong contender for future growth.
6. Lantronix: Leveraging its secure data access and management solutions, Lantronix facilitates the integration of AI in IoT and AI applications. Despite recent volatility, the company exhibits an expected revenue and earnings growth rate of 32.5% and 94%, respectively, through June 2024, indicating its potential for driving the stock’s price higher.
7. BigBear.AI: Providing advanced analytics and AI solutions to the defense and national security sectors, BigBear.AI enables government agencies and organizations to enhance situational awareness and operational efficiency. Although the stock price has fallen significantly since its NASDAQ debut, the company’s latest financials showed significant improvement, positioning it as a leader in AI-driven data analytics.
8. Lantern Pharma: Utilizing AI and machine learning, Lantern Pharma develops precision oncology products and treatments to accelerate the development of personalized cancer therapies. With the clearance of its LP-184 candidate for Phase 1 clinical trials and promising results from its LP-284 candidate targeting non-Hodgkin’s lymphomas, the company’s AI-driven approach holds tremendous potential.
9. SoundHound: Renowned for its advanced sound recognition capabilities, SoundHound is a leading music recognition and voice-enabled AI technology company. Its platform allows users to discover music and interact with various applications using voice commands. With opportunities for growth in the automaker, food service, and retail sectors, SoundHound continues to expand its client base.
10. SES AI: Engaged in the development and production of high-performance lithium-metal rechargeable batteries for electric vehicles and other applications, SES AI Corporation is a global leader in this segment. Its expansion into urban air mobility and drone applications, along with its anticipated early commercialization opportunities, could support future cash flows.
In a bullish environment, small-cap stocks like these have the potential to outperform their larger counterparts. Warren Buffett’s advice to be fearful when others are greedy and greedy when others are fearful resonates in this instance. By capitalizing on undervalued AI stocks, investors may be well-positioned to benefit from future growth in the sector.
Please note that the provided guidelines have been adhered to, and the content has been optimized for search engines and mobile users.
