In this article, we discuss the top 10 artificial intelligence stocks under $10. If you want to see more actions in this selection, check out the 5 Best Artificial Intelligence Stocks Under $10.
According to a study conducted by PricewaterhouseCoopers (PwC), 45% of economic gains by the end of this decade will be driven by improved AI technology that will drive consumer demand. Experts believe that AI will provide consumers with greater product variety as well as affordability, attractiveness and personalization. Experts consider this theme a trend changer, 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 the China and India combined. Nearly 40% of the economic recovery will be driven by higher productivity and 60% by higher demand. It may seem that AI has gained popularity in many industries, 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 AI improvements. However, this requires strategic and targeted investments in different areas of AI technology.
In the automotive sector, the applicability of AI will expand through the rise of autonomous fleets for ridesharing. Autonomous driving is growing day by day, with features such as driver assistance already gaining popularity. At the same time, improvements are also being made in the area of engine monitoring, which would help predict maintenance. Similarly, AI comes into play in the healthcare sector by supporting diagnosis and highlighting small variations from the baseline. Additionally, the power of AI can be used to identify pandemics at an early stage. Finally, AI is expected to play a role in personalized financial planning in the financial services industry. The biggest impact in the financial services industry will come in the form of process automation through customer-facing and back-office functions. 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 analyzed company fundamentals and analyst ratings to select the top 10 artificial intelligence stocks under $10. These stocks are well positioned to scale their operations in line with emerging trends in AI and offer significant upside potential for long-term investors. These companies have been ranked by the number of hedge funds with a stake in them as of Q3 2022. All 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 that uses the power of artificial intelligence in the rail industry to ensure rail transportation runs safely and efficiently.
Duos Technologies Group, Inc. (NASDAQ: DUOT), founded in 2001, is continuously developing and deploying AI detection models in various aspects of its operations. It aims to leverage the power of AI to improve the efficiency of the rail car inspection system. The company has reduced the lead time for the first 10-15 accurate algorithms related to rail car inspection portals to a short 15 days, from 12-18 months around six months ago.
Duos Technologies Group, Inc. (NASDAQ: DUOT) continued to improve its business performance in the third quarter of 2022, bringing the company closer to achieving its annual financial and operational goals. The successful execution of several rail car inspection portals and portal installations in the third quarter drove revenue, which grew more than 130% year-over-year and more than 10% quarter-on-quarter.
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, the mobile internet, into an AI-powered industrial internet. The company has integrated the diverse use of robots into daily life. One of the notable uses of its robots is in the mall, where they can be used to interact with customers, distribute coupons, display advertisements and provide important information. Cheetah Mobile Inc. (NYSE: CMCM) has also developed its own family of intelligent service robots. The company is considered one of the pioneers in the field of AI as it hired 200 engineers specializing in the field of AI in 2018. CEO Sheng Fu regards visual and voice recognition as the key aspects of the future of AI. By supplying robots to hospitals in China to help fight the pandemic, Cheetah Mobile Inc. (NYSE: CMCM) has really made a name for itself in the public eye.
Cheetah Mobile Inc. (NYSE: CMCM) has made significant investments in AI and backs robotics company OrionStar. OrionStar has added 5G to a series of service robots using Qualcomm technology for homes, bars and restaurants. Experts consider Cheetah Mobile Inc. (NYSE:CMCM) to be one of the best AI stocks because 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 provides AI-based software platforms to leading organizations around the world.
On November 9, the company announced that its Synodex platform had been adopted by two new unnamed diversified financial services companies with an asset base of over $200 billion. The deal is expected to generate $1.1 million in annual revenue for Innodata Inc. (NASDAQ:INOD). The Synodex platform provides key medical information that helps make 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) also leveraged the use of AI to launch its first “social listening” tool in late September 2022. The company launched a tool for companies looking to understand sentiment customers on various social networks. platforms, as more than 50% of the world’s population is now on social media. The company’s expansion strategies make it one of the best AI stocks to buy right now.
Marshall Wace LLP increased 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 pharmaceutical company focused on clinical-stage oncology that uses the power of AI, genomics and machine learning to develop therapies. The company believes that bringing these tools together would reduce the cost and time to develop new therapies.
In a report delivered to investors Oct. 31, EF Hutton’s Michael King hedged Lantern Pharma Inc. (NASDAQ:LTRN) stock with a buy rating and target price of $11. The target price reflects a potential upside of over 117% from the November 30 closing price. The analyst believes that Lantern Pharma Inc. (NASDAQ: LTRN) is becoming a highly efficient and focused oncology drug development entity. King appreciated the company’s efforts to continue research on three oncology drugs and find ways to diversify their clinical uses. Experts also have a bullish view of the company’s proprietary RADR platform that predicts the possible response of Lantern Pharma’s drug on patients.
Lantern Pharma Inc. (NASDAQ:LTRN) was owned 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 provides AI-powered solutions to solve business challenges and drive innovation. The company has proprietary applications that use AI, machine learning and deep learning to solve business monitoring, ultrasound and data suitability assessment problems. Alithya Group Inc. (NASDAQ: ALYA) has more than 3,000 people and offers its services throughout North America and Europe.
Alithya Group Inc. (NASDAQ:ALYA) released its FY23 second quarter results on November 10. Revenue increased 22.4% year-over-year to $96.18 million, while adjusted EBITDA increased 87.5% year-over-year to $7.01 million. Adjusted EBITDA to revenue share increased from 5.8% in the same quarter last year to 7.3% in Q2 FY23. Experts believe Alithya Group Inc. (NASDAQ:ALYA) has the ability to expand its operations significantly. Currently, 26% of the company’s revenue comes from fee-based customer initiatives or IP-based subscriptions. For Alithya Group Inc. (NASDAQ: ALYA) and its customers, this segment is extremely valuable. In the second quarter, 80% of the company’s revenue came from loyal customers.
Ancora Advisors was the lead hedge fund investor in Alithya Group Inc. (NASDAQ: ALYA) during the third quarter of 2022.
In addition to Alithya Group Inc. (NASDAQ:ALYA), popular stocks such as NVIDIA Corporation (NASDAQ:NVDA), International Business Machines Corporation (NYSE:IBM) and Amazon.com, Inc. (NASDAQ:AMZN) are among top companies investing in AI technology.
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Disclosure: none. 10 Best Artificial Intelligence Stocks Under $10 is originally published on Insider Monkey.
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