In this article, we will be taking a look at the 10 best artificial intelligence stocks under $10. To skip our detailed analysis of the artificial intelligence industry, you can go directly to see the 5 Best Artificial Intelligence Stocks Under $10.
Artificial intelligence (AI) has taken the financial markets by storm in 2023, leading us into what has become known as an AI boom. Companies across the globe are scurrying to join the AI frenzy by introducing their own AI-powered products and services, while those that have been actively involved in the space in the past are beginning to reap the benefits of their foresight. While some are dubbing the AI boom a simple hype cycle that will blow away, others are drawing more optimistic comparisons between other transformational technological movements, like the dot-com bubble and the AI boom, holding that just like the internet, AI is on its path to becoming a form of technology 21st-century businesses and consumers simply cannot live without.
Hype Cycle Or Transformational Technology?
On June 27, Daniel Ives, an analyst at Wedbush Securities, was invited on CNBC to share his insights on the AI boom. According to Ives, the popularity of AI is not just a hype cycle. Rather, he believes it to be a fourth industrial revolution. Here are some of his comments from the CNBC interview:
"This is something I'll call a 1995 moment, parallel to the internet. I do not believe that this is a hype cycle. I think this is really something, transformational changes to technology. I think we are just starting what we believe is the start of a new tech bull market, despite many of the bears continuing to be skeptical."
On the future of companies involved within this space, Ives said the following:
"I think it really comes down to the guidance heard round the world, with the NVIDIA $4 billion guidance raise. I think that's the tip of the iceberg. What we're really gonna start seeing right now with the earning season, stocks of Microsoft, stocks of some of these hyper-scale players, we're gonna have a trillion dollars of incrementals spent over the next decade. That could be conservative - that wasn't here six months ago. That's why I think really what you're seeing is the multiple expansion. Investors recognize this is an AI gold rush which I really view as something you only parallel with the 1995 internet and 2007 Apple iPhone moment."
According to Ives, major players in the AI space at present, which include companies such as NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), will continue to see higher earnings and other benefits due to their active contributions and participation in the AI industry. Additionally, smaller companies operating within this space may also be set to benefit immensely as the markets become increasingly obsessed with AI. This is making many investors start to hunt for cheap AI stocks alongside the bigger stocks that have made a name for themselves as some of the best AI stocks to buy in 2023. Artificial intelligence stocks under $20 or below are beginning to gain the interest of individual investors and hedge funds alike as they may very well be buying into these companies at a discount right now compared to their projected growth.
Is AI Moving Too Fast?
Considering the widespread influence of this revolutionary technology in 2023, particularly with the launch of ChatGPT in 2022, leaders within the AI space have been offering their insights into the impact of AI all through 2023. This May, for instance, CNBC released a special edition interview with Microsoft Corporation's (NASDAQ:MSFT) CEO Satya Nadella, where he voiced his opinions on the rise of AI and whether it was moving too fast. Here's what he had to say:
"In an interesting way, a lot of technology, a lot of AI, is already there at scale. Every news feed, every sort of social media feed, search as we know of it before chat plus search. They're all on AI, and if anything they're black boxes. I'd describe them as the autopilot era. So in an interesting way, we're moving from the autopilot era of AI to a co-pilot era of AI. So if anything, I feel yes, it's moving fast, but moving fast in the right direction, moving fast where humans are more in control."
According to Nadella, those involved in the AI space must have "a good civil dialogue" on how to maximize the opportunities presented by this technology while simultaneously minimizing the dangers associated with it. But in general, leaders like Nadella continue to have an optimistic outlook on the future of AI and what it holds for the tech community. Considering this, investments within this field have managed to keep rising, and the individual investor is more concerned about joining the fray with an affordable stock to stand by. Thus, we have compiled a list of some of the best cheap AI stocks to buy in 2023.
10 Best Artificial Intelligence Stocks Under $10
Our Methodology
For our list below, we selected companies working in the artificial intelligence space and trading under $10 as of July 16. We used Insider Monkey's hedge fund data to rank them based on the number of hedge funds holding stakes in them, from the lowest to the highest number.
Duos Technologies Group, Inc. (NASDAQ:DUOT) is a systems software company based in Jacksonville, Florida. The company provides intelligent security analytical technology solutions, and its AI-powered solutions make it a viable investment in the AI security sector.
Three hedge funds held stakes in Duos Technologies Group, Inc. (NASDAQ:DUOT) in the first quarter, with a total stake value of $313,000.
Becker Drapkin Management was the largest shareholder in Duos Technologies Group, Inc. (NASDAQ:DUOT) at the end of the first quarter, holding 87,801 shares in the company.
Like NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Duos Technologies Group, Inc. (NASDAQ:DUOT) is a stock that investors interested in AI should keep an eye on today.
On June 1, Vincent Colicchio at Barrington Research reiterated an Outperform rating on Alithya Group Inc. (NASDAQ:ALYA) shares, alongside a $3.50 price target.
Based in Montreal, Canada, Alithya Group Inc. (NASDAQ:ALYA) is an information technology company. It offers AI-based solutions for businesses and proprietary applications using AI, machine learning, and deep learning, which are used in trade surveillance and more.
Alithya Group Inc. (NASDAQ:ALYA) was seen in the portfolios of four hedge funds during the first quarter, with a total stake value of $5.7 million.
Ancora Advisors held 1.2 million shares in Alithya Group Inc. (NASDAQ:ALYA) at the end of the first quarter, making it the largest shareholder in the company.
There were seven hedge funds long Veritone, Inc. (NASDAQ:VERI) at the end of the first quarter. Their total stake value in the company was $5.6 million.
As of June 1, Stifel analyst Brad Reback maintains a Hold rating on Veritone, Inc. (NASDAQ:VERI) shares.
Veritone, Inc. (NASDAQ:VERI) is a pure play in the artificial intelligence industry based in Denver, Colorado. The company offers AI computing solutions and services in the US and the United Kingdom. Its products include the aiWARE platform, an AI operating system using machine learning algorithms or AI models, and human cognitive functions like prediction and problem-solving.
Like NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Veritone, Inc. (NASDAQ:VERI) is a company with much to gain from the AI boom.
Portolan Capital Management was the most prominent shareholder in Lantronix, Inc. (NASDAQ:LTRX) at the end of the first quarter, holding 833,045 shares in the company.
Lantronix, Inc. (NASDAQ:LTRX) is an information technology company based in Irvine, California. The company offers solutions for video surveillance, traffic management, infotainment systems, robotics, edge computing, and remote environment management globally. Its contributions in the AI space include AI-driven solutions for seamless connectivity and secure data transmission in Internet of Things (IoT) integration.
Eight hedge funds held stakes in Lantronix, Inc. (NASDAQ:LTRX) during the first quarter, with a total stake value of $6.7 million.
As of June 6, Ryan Koontz, an analyst at Needham, holds a Buy rating on shares of Lantronix, Inc. (NASDAQ:LTRX). The analyst also maintains a price target on the stock of $8.50.
Rekor Systems, Inc. (NASDAQ:REKR) is an application software company based in Columbia, Maryland. It provides intelligent infrastructure solutions for the transportation management, public safety, and urban mobility markets internationally.
The company's use of AI relates to leveraging AI technology to enhance the efficiency of data analysts in the transportation sector. Rekor Systems, Inc. (NASDAQ:REKR) has identified a growing need for intelligent transportation solutions in this industry, making it an attractive AI play for investors today.
Rekor Systems, Inc. (NASDAQ:REKR) had eight hedge funds long its stock in the first quarter. Their total stake value in the company was $15.6 million.
“Rekor Systems Inc. (REKR US). In February 2021,the Fund participated in a primary offering of shares in Rekor, a US-based technology company focused on vehicle identification systems sold to government entities. Shares proceeded to nearly double in short order, and we sold the position in mid-April for a sizable gain. When markets hand you a gift, sometimes it’s best to ring the cash register.”
