The Artificial Intelligence (AI) stocks market is growing exponentially. The allure of affordable equities under $10 has steadily increased in a market characterized by both bull and bear runs. In such a market, investors often look for undervalued stocks with attractive earnings per share figures.
For those seeking small-cap gems with good growth potential, low-priced equities offer an opportunity for investors with diverse risk tolerances and trading strategies. Often small companies dealing in commodities, biotech, and other industries, all with a price tag under $10, fly under the radar, but can yield substantial returns.
In a volatile market, the appeal of AI stocks trading at a relative discount to their sector peers cannot be overstated. Here are our picks for the best affordable AI stocks under $10.
Rekor Systems is one of the best stocks for those looking for potential value stocks. The company is a prominent player in the AI-driven edge computing and machine learning solutions sector. It’s positioned itself as a key player in security and surveillance. The stock market is bullish about this penny stock since, despite market volatility, the company has gained about 193% since the past year. Its second-quarter results for the year were also noteworthy, highlighting growth in revenues, overall performance obligations, and recurring revenue, as well as total contract value.
FiscalNote is a leading AI-powered platform that provides real-time government risk and regulatory intelligence. The company offers businesses and organizations insights into policy changes and regulatory developments that could impact their operations. The stock is undervalued, having lost about 68% since the beginning of the year and now has a market capitalization of $265.44 million. However, the news of its recently introduced FiscalNote Risk Connector Product expansion is promising and may help it to rebound. It could be an excellent buy for traders who want to invest in small-cap stocks capable of delivering big returns in the future.
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 AI and data analytics. Nerdy’s value has risen nearly 60% over the past year, becoming one of the most attractive penny stocks to beat the current market. It has already established itself as a critical facilitator of remote education, particularly during the pandemic. The company is committed to enhancing learning outcomes through technology-driven solutions and has proven it can outperform the market.
Himax Technologies is a semiconductor solution provider that has successfully integrated AI technologies into its product portfolio. Although it lost about 8% since the beginning of 2023, the stock currently sells at about 15 times its earnings, which is good for the global market. Moreover, the company is also suitable for dividend investors with a dividend yield of 8.25% and a payout ratio of more than 90%. It offers excellent opportunities to traders looking to capitalize on this sector.
AudioEye specializes 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 earnings per share (EPS) came at a loss of 2 cents per share. The stock has good growth potential in the near future with its solid work pipeline helping it capitalize on new accessibility rules from the federal government.
Lantronix offers secure data access and management solutions for Internet of Things (IoT) and AI applications. The company facilitates data transmission and management, enabling businesses to use AI in their operations through its portfolio of connectivity and networking products. The company’s offerings benefit the industrial automation and healthcare industries, as well as transportation. The stock has been volatile recently, but it can be a great buy. It has an expected revenue and earnings growth rate of 32.5% and 94%, respectively, through June 2024, which could drive the stock’s price higher.
BigBear.AI provides advanced analytics and artificial intelligence solutions, 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 NASDAQ, the stock’s price has fallen from more than $9 per share to less than $2. However, its latest financials showed significant improvement, which bodes well for future business. Considering its solid customer base and considerable work backlog, the market believes the company is positioned to be a leader in AI-driven data analytics.
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, improving patient outcomes and reducing drug development timelines. The company uses AI to identify biomarkers and predict treatment responses to develop targeted and efficient cancer treatments.
Lantern received clearance from the U.S. Food and Drug Administration to bring its LP-184 candidate into Phase 1 clinical trials to test its effectiveness against advanced solid tumors and brain cancers. The company also presented data highlighting the anti-tumor potency of its LP-284 candidate, which targets non-Hodgkin’s lymphomas.
SoundHound is a pioneering music recognition and voice-enabled AI technology company famous for its advanced sound recognition capabilities. The platform allows users to discover music and interact with various applications using voice commands. It also presents voice-enabled AI interfaces for businesses and organizations. The market believes SoundHound has room for continued growth as its automaker client list needs to be completed, and its foray into food service and general retail stores has only just begun.
SES AI Corporation is engaged in developing and producing high-performance Lithium-metal rechargeable batteries for electric vehicles (EV), electric vehicle take-off and landing, and other applications. The company is a global leader in this segment. SES AI 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 sectors represent the company’s early commercialization opportunities and could support its cash flows in the future.
In a volatile market, it’s essential for investors to have a diversified portfolio. These small-cap stocks have the potential to outperform their larger counterparts, particularly in a bullish environment. The resilience of these small-cap equities is a testament to their strength.
Warren Buffett once advised that it’s wise to be fearful when others are greedy and greedy when others are fearful. These undervalued AI stocks may be a good opportunity to act on his words.