Artificial intelligence technology has grown tremendously in the past decade. AI is used for everything from insurance claims to at-home assistants.
The AI market carries perhaps the highest level of hype of any major category in technology. The total artificial intelligence (AI) market will be worth $196.6 billion in 2023. Though a crowded space, a few stocks under $10.00 could be a great addition to any portfolio.
Let’s take a look at the top 15 artificial intelligence stocks under $10
15. Innodata Inc. (NASDAQ:INOD)
Innodata is an investment-grade company that creates artificial intelligence business solutions for data analysis.
Some of Innodata’s major clients include SONY and Michigan State University, which use their software to understand how they can refine their business processes and profitability.
Though INOD is currently low (~$6), it is expected to rebound as it did in November 2021 ($11.25).
Pros:
- Experienced Management Team
- Strong Financials
- Diversified Revenue Streams
- Potential for Growth
- Shareholder-Friendly
Cons:
- Volatility
- Intense Competition
- Exposure to Economic Cycles
- Reliance on Key Clients
- Limited International Presence
14. Alithya Group Inc. (NASDAQ:ALYA)
Alithya Group is a Canadian tech company that has been in operation since 1992.
The Alithya Group specializes in everything from internet-of-things (IoT) devices to legacy systems optimization.
They have a particularly strong presence in the finance sector but also work in other industries (such as retail and healthcare).
Pros:
- Growing demand for digital transformation services
- Strategic partnerships with companies such as Microsoft, Salesforce, and AWS
- Strong financial position with low debt and healthy cash balance
- Experienced management team
Cons:
- Highly competitive market
- Dependence on key customers
- A cyclical industry that economic downturns can impact
- Limited operating history
13. Cootek (Cayman) Inc. (NYSE:CTK)
Cootek tools help customers find relevant game results tailored to their interests. Cootek is currently at an all-time low (under $1), but upcoming products and the introduction of in-app advertising will likely cause it to increase in the near future.
Pros:
- Strong revenue growth
- Focus on AI and big data-driven apps
- Diversified app portfolio
- Partnerships with major companies
Cons:
- Dependence on a few key apps
- Exposure to regulatory risks
- Limited profitability
- Limited track record
12. BigBear.AI (NYSE:BBAI)
BigBear.ai is an artificial intelligence company developing AI-based tools for cyber engineering solutions and data analytics. They hope to help create solutions and skilled decision-making for problems in real-world environments. Some of their biggest clients include the US Army, the Defense Intelligence Agency, and the US Air force.
Pros:
- Experienced leadership
- Strong government contracts
- Advanced AI capabilities
- Innovative technology
- Growth potential
Cons:
- Relatively new company
- Dependence on government contracts
- High competition
- Dependence on skilled employees
- Risks associated with AI
11. Palantir Technologies (NYSE:PLTR)
Palantir Technologies is a company that creates tools that identify patterns and help make predictions. Their products are used by governments, law enforcement agencies, and financial institutions.
The US government contributed $987 million (mostly from the US defense sector) to Palantir Technologies during 2023’s first quarter. Since this company has the government backing them, you can consider them one of the best artificial intelligence stocks under $10.
Pros:
- High revenue growth.
- Diverse customer base.
- Strong competitive position.
- Significant growth potential.
Cons:
- High operating costs.
- Concentration risk.
- Limited transparency.
- Valuation concerns.
10. SoundHound AI (NASDAQ:SOUN)
With a client list that includes Netflix, Pandora, and Motorola, SoundHound has become an industry leader in the artificial intelligence space. By creating conversational AI programs, SoundHound allows companies to mimic human interactions and discussions.
Because of their innovation, this stock can be considered one of the best artificial intelligence stocks under $10
Pros:
- Market-leading technology.
- Diverse revenue streams.
- Large addressable market.
- Strong financials.
Cons:
- Concentration risk.
- Competition.
- Limited track record.
- Valuation concerns.
9. Nerdy (NYSE:NRDY)
Nerdy is a company that offers online lessons and tutoring. Their platform personalizes lessons for their users using AI-generated lesson plans and chat tutoring. The company has a solution for students who struggle with different subjects. Their platform is designed to help students learn independently and reach their academic goals.
The company integrates ChatGPT into its products to help students learn faster and more efficiently. These AI learning tools are anticipated to blow up in the next few years.
Pros:
- Strong revenue growth.
- Diversified revenue streams.
- Disruptive technology.
- Growing market.
Cons:
- High operating costs.
- Dependence on a few large customers.
- Limited operating history.
- Competitive market.
8. Remark Holdings (NASDAQ:MARK)
Remark Holdings, Inc. is a natural language processing and artificial intelligence company that provides solutions for various industries, including hospitality and retail. They have developed facial recognition software, virtual healthcare tools, and AI software (Remark Vision) for forensics and deep learning.
With a compound annual growth rate of 38% from 2020 to 2030, Remark Holdings stocks are expected to rise over the next decade steadily.
Pros:
- Strong Presence in China
- AI-based Solutions
- Revenue Growth
- Diversified Portfolio
Cons:
- Limited Profitability
- Legal Issues
- Competitive Market
- Exposure to China Risks
7. Predictive Oncology (NASDAQ:POAI)
Predictive Oncology is dedicated to developing artificial intelligence software for the medical field.
The company had a 45% revenue increase last quarter, but they are still producing large losses and are competitive. Predictive Oncology may be high-risk, but it could also be a high reward.
Pros
- Innovative technology
- High growth potential
- Strong partnerships
- Diverse revenue streams
Cons
- Limited financial history
- High operating expenses
- Competitive industry
- Regulatory challenges
6. Oblong (NASDAQ:OBLG)
Oblong is an artificial intelligence stock that’s worth watching. They’re a visual collaboration solutions company, and it’s most well-known for its Mezzanine product, which lets users connect across multiple screens (up to 10) in real time.
Pros
- Innovative technology
- Strong customer base
- High growth potential
- Strategic partnerships
Cons
- Limited financial history
- High operating expenses
- Competitive industry
- Market volatility
5. Ideanomics Inc. (NASDAQ:IDEX)
Ideanomics is an artificial intelligence company that works with commercial electric vehicles. Their solutions for sustainable energy consumption are available to companies looking to enter the market and reduce their carbon footprint.
Pros:
- Strong Growth Potential
- Diversified Business Portfolio
- Market Opportunity
- Strategic Partnerships
- Strong Leadership
Cons:
- High Risk
- Intense Competition
- Regulatory Risks
- High Valuation
- Limited Track Record
4. Amesite Inc. (NASDAQ:AMST)
Amesite is a cloud-based course AI software for universities and colleges. The platform helps educational institutions streamline online lessons, providing tips and solutions to make virtual courses cost-effective and accessible.
Pros:
- Growing Market
- Strong Management Team
- Unique Technology
- High Growth Potential
- Strategic Partnerships
Cons:
- High Risk
- Intense Competition
- Regulatory Risks
- Limited Track Record
- Valuation
3. Qudian Inc. (NYSE:QD)
Qudian is a Chinese company that uses artificial intelligence to improve the online finance experience for its customers. After making tactical changes to their operations, Qudian seems to be getting back on track. It may take time, but Qudian could show remarkable growth.
Pros:
- Strong Market Position
- Diversified Product Portfolio
- Strong Growth Potential
- Robust Risk Management
- Innovative Technologies
Cons:
- Regulatory Risks
- Credit Risk
- Dependence on a Single Market
- Competitive Market
- Limited Track Record
2. Powerbridge Technologies (NASDAQ:PBTS)
Powerbridge Technologies is another Chinese tech company finding its place in cryptocurrency. They created an ETF platform structured by Web 3.0 technology, offering investors a unique opportunity to diversify their portfolios.
Pros:
- Growing market
- Innovative products
- Strong financial performance
Cons:
- Volatility
- Limited market penetration
- Dependence on key customers
1. Splunk (NASDAQ:SPLK)
Splunk is quickly becoming a machine-learning powerhouse. Splunk helps companies automate certain IT processes, allowing huge cost reductions. This is especially useful for small businesses that want to be able to compete with bigger companies but don’t have the manpower or resources. This can be considered one of the best artificial intelligence stocks under $10
Pros:
- Strong market position in real-time data analysis and monitoring market
- Innovative technology platform
- Diversified customer base
- Strong financials
- Experienced management team
Cons:
- High valuation
- Dependence on large customers
- Competition in the market
- Limited profitability
- Exposure to technological risks.