In this article, we discuss the 10 best artificial intelligence stocks under $10. If you want to see more stocks in this selection, check out the 5 Best Artificial Intelligence Stocks Under $10.
According to research conducted by PricewaterhouseCoopers (PwC), 45% of the economic gains by the end of this decade will be driven by the enhancement in AI technology that will provide impetus to consumer demand. Experts believe that AI will provide consumers with more variety in products along with affordability, attractiveness, and personalization. Experts consider this theme as a trend changer moving forward as it is expected to contribute $15.7 trillion to the economy in 2030. The significance of this contribution can be gauged by the fact that it is greater than the current GDP of China and India combined. Nearly 40% of the economic boost will be driven by higher productivity, and 60% due to higher demand. It may seem that AI has gained significant popularity in numerous sectors, but overall the industry is still in its infancy. Experts believe that the automotive, financial services, and healthcare sectors have the greatest potential to benefit from the enhancements in AI. However, this requires strategic and focused investment in different areas of AI technology.
In the automotive sector, the applicability of AI will expand through the increase in autonomous fleets for ride-sharing. Autonomous driving is developing with every passing day, with features like driver-assist already gaining traction. Meanwhile, improvement is also taking place in the field of engine monitoring, which would assist in predicting maintenance. Similarly, AI is coming into play in the healthcare sector by supporting diagnosis and highlighting small variations from the baseline. In addition, AI’s power can be used to identify pandemics at an early stage. Finally, AI is expected to play a part in personalized financial planning in the financial services sector. The most significant impact in the financial services sector will come in the form of process automation through customer-facing and back-office functions. Some of the popular companies investing heavily in AI include NVIDIA Corporation (NASDAQ:NVDA), International Business Machines Corporation (NYSE:IBM), and Amazon.com, Inc. (NASDAQ:AMZN).
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Our Methodology
We have analyzed the business fundamentals and analyst ratings to shortlist the 10 best artificial intelligence stocks under $10. These stocks are well-positioned to scale their operations in line with new trends in the AI space and offer significant upside potential to investors in the long run. These companies have been ranked according to the number of hedge funds holding a stake in them as of Q3 2022. All the stocks discussed are trading under $10 as of November 30.
10 Best Artificial Intelligence Stocks Under $10
10. Duos Technologies Group, Inc. (NASDAQ:DUOT)
Number of Hedge Fund Holders: 1
Stock Price: $2.90
Duos Technologies Group, Inc. (NASDAQ:DUOT) is a Jacksonville, Florida-based company using the power of artificial intelligence in the railroad industry to ensure that railroad transportation takes place safely and efficiently.
Duos Technologies Group, Inc. (NASDAQ:DUOT), founded in 2001, is continuously developing and deploying AI detection models across various aspects of its operations. It is focused on leveraging the power of AI to enhance the efficiency of the railcar inspection system. The company has reduced the lead time of delivering the first 10 to 15 accurate algorithms related to railcar inspection portals to a short duration of 15 days as opposed to a period of 12 to 18 months around six months ago.
Duos Technologies Group, Inc. (NASDAQ:DUOT) continued to enhance its sales performance in the third quarter of 2022, driving the company closer to achieving its yearly financial and operational targets. The strong execution of multiple railcar inspection portals and portal installations in the third quarter boosted revenues, which climbed by more than 130% YoY and by more than 10% on a quarterly basis.
9. Cheetah Mobile Inc. (NYSE:CMCM)
Number of Hedge Fund Holders: 1
Stock Price: $1.76
Cheetah Mobile Inc. (NYSE:CMCM) is a Beijing, China-based mobile internet company focused on improving lifestyles by using AI to develop robots that can co-exist with humans. The company has been listed on the New York Stock Exchange (NYSE) since 2014.
Cheetah Mobile Inc. (NYSE:CMCM) is working to transform its core business of mobile internet into AI-driven industrial internet. The company has incorporated diverse use of robots into daily lives. One of the notable uses of its robots is in the shopping mall, where they can be used to interact with customers, dispense coupons, show advertisements, and provide important information. Cheetah Mobile Inc. (NYSE:CMCM) has also come up with its own smart service robot family. The company is considered one of the pioneers in the field of AI as it hired 200 engineers specializing in the field of AI back in 2018. CEO Sheng Fu considers visual and voice recognition as the key aspects of AI moving forward. By supplying robots to hospitals in China to aid with the pandemic, Cheetah Mobile Inc. (NYSE:CMCM) truly made a name for itself in the public eye.
Cheetah Mobile Inc. (NYSE:CMCM) has made significant AI investments and is supporting the robotics company OrionStar. OrionStar has added 5G to a series of service robots using Qualcomm technology aimed at homes, bars, and eateries. Experts consider Cheetah Mobile Inc. (NYSE:CMCM) one of the best artificial intelligence stocks, as the company is well-positioned to capitalize on emerging trends.
8. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 3
Stock Price: $3.24
Innodata Inc. (NASDAQ:INOD) is a Hackensack, New Jersey-based data engineering entity that is a provider of AI-based software platforms to leading organizations globally.
On November 9, the company announced that its Synodex platform was adopted by two new unnamed diversified financial services companies with an asset base of over $200 billion. The deal is expected to generate annual revenue of $1.1 million for Innodata Inc. (NASDAQ:INOD). The Synodex platform provides key medical information that aids in making important business decisions. The platform converts information on paper and medical images into usable information. The life insurance industry could become the biggest beneficiary of the platform.
Innodata Inc. (NASDAQ:INOD) has also leveraged the use of AI to launch its first ‘social listening’ tool in late September 2022. The company has launched a tool for corporations that are looking to understand the sentiments of customers on various social media platforms, as over 50% of the global population is now on social media. The company’s expansion strategies make it one of the best artificial intelligence stocks to buy now.
Marshall Wace LLP raised its stake in Innodata Inc. (NASDAQ:INOD) by 15% during the third quarter of the year.
7. Lantern Pharma Inc. (NASDAQ:LTRN)
Number of Hedge Fund Holders: 3
Stock Price: $5.05
Lantern Pharma Inc. (NASDAQ:LTRN) is a Dallas, Texas-based clinical-stage oncology-focused pharmaceutical company that is utilizing the power of AI, genomics, and machine learning to develop therapies. The company believes that bringing these tools together would reduce the cost and timeline of developing new therapies.
In a report issued to investors on October 31, Michael King at EF Hutton initiated coverage on Lantern Pharma Inc. (NASDAQ:LTRN) stock with a Buy rating and a target price of $11. The target price reflects a potential upside of over 117% from the closing price as of November 30. The analyst believes Lantern Pharma Inc. (NASDAQ:LTRN) is becoming a very efficient and focused oncology drug development entity. King appreciated the company’s effort in continuing the research on three oncology drugs and finding ways to diversify its clinical uses for them. Experts also have a bullish on the company’s proprietary RADR platform that predicts the possible response of Lantern Pharma’s drug on patients.
Lantern Pharma Inc. (NASDAQ:LTRN) was held by 3 hedge funds at the end of Q3 2022.
6. Alithya Group Inc. (NASDAQ:ALYA)
Number of Hedge Fund Holders: 3
Stock Price: $1.75
Alithya Group Inc. (NASDAQ:ALYA) is a Montreal, Canada-based company that is a provider of AI-based solutions to solve business challenges and promote innovation. The company has proprietary applications that use AI, machine learning, and deep learning to solve trade surveillance, ultrasonic, and data suitability assessment challenges. Alithya Group Inc. (NASDAQ:ALYA) has a headcount of over 3,000 individuals and offers its services across North America and Europe.
Alithya Group Inc. (NASDAQ:ALYA) posted its Q2 FY23 results on November 10. Revenue increased by 22.4% YoY to $96.18 million, while the adjusted EBITDA increased by 87.5% YoY to $7.01 million. The adjusted EBITDA to revenue share increased from 5.8% during the same quarter last year to 7.3% in Q2 FY23. Experts believe that Alithya Group Inc. (NASDAQ:ALYA) has the ability to scale its operations significantly. Currently, 26% of the company’s revenue comes from fixed-fee client initiatives or intellectual property-based subscriptions. For both Alithya Group Inc. (NASDAQ:ALYA) and its clients, this segment is extremely valuable. In the second quarter, 80% of the company’s revenues came from repeat customers.
Ancora Advisors was the leading hedge fund investor in Alithya Group Inc. (NASDAQ:ALYA) during Q3 2022.
In addition to Alithya Group Inc. (NASDAQ:ALYA), popular stocks like NVIDIA Corporation (NASDAQ:NVDA), International Business Machines Corporation (NYSE:IBM), and Amazon.com, Inc. (NASDAQ:AMZN) are among the leading companies investing in AI technology.
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Disclosure: None. 10 Best Artificial Intelligence Stocks Under $10 is originally published on Insider Monkey.