The Best Artificial Intelligence Stocks under $10

Are you busy selecting Artificial Intelligence (AI) stocks for your portfolio? Often combined with Machine Learning (ML) technology, AI innovations are seizing the investment world by storm. Investors are always looking for the next hottest item, and although AI companies have existed for years, their recognition is heating up of late.

Often shrouded in thematic investing terms, AI stocks do represent the future and the basic tenet of thematic investing is to invest now in stocks that will benefit from predictable mega-trends, which will drive up value over a much longer-term, generally 10 years or more. The rush, however, is on to find bargains and little diamonds in the rough before the masses drive the prices of these securities into the upper atmosphere.

Once the expressed purview of science fiction movies with humanoid-type robots, AI represents the potential of replacing any human thought process with a computer design that improves over time. The process mimics us, much in the same way that the brain assimilates new data and associations to innovate and create new solutions for existing mental challenges. As you might expect, customer service has been the initial focal point, providing support and answers to routine queries that pervade online Internet platforms.

Perhaps, one current example will drive home the point. Capital.com is an impressive online broker that broke into the investment scene five years back and has already amassed a clientele upwards of 2 million registered customers. One reason for its success can be attributed to its innovative trading platform that uses AI to analyse 20 biases that traders exhibit and then provides feedback to the client to improve their approach and enhance the opportunity for success.

Unfortunately, AI capabilities have been over-hyped. Hopefully, the waves of investors that buy on rumour before doing any analysis has subsided, and reality has set in to subdue over-the-top perceptions. Experts in the field tend to be the voices of dissent. Rodney Brooks, a MIT roboticist and co-founder of iRobot, claims that Artificial General Intelligence (AGI) will not arrive until 2300. These sanguine quotes may speak more to the long-term nature of AI:

• Rodney Brooks: “It is a fraught time understanding the true promise and dangers of AI. Most of what we read in the headlines… is, I believe, completely off the mark”.

(Source: McKinsey)

• Yann LeCun, a professor at the Courant Institute of Mathematical Sciences at New York University (NYU): “It’s hard to explain to non-specialists that AGI is not a ‘thing’, and that most venues that have AGI in their name deal in highly speculative and theoretical issues”.

(Source: McKinsey)

• Richard Sutton, professor of computer science of the University of Alberta: “Understanding human-level AI will be a profound scientific achievement (and economic boon) and may well happen by 2030 (25% chance), or by 2040 (50% chance)—or never (10% chance)”.

(Source: McKinsey)

The issues are that it will take a long time to mimic sensory perception, fine motor skills, natural language understanding, problem-solving, navigation, creativity, and social and emotional engagement. How do we measure progress by AI researchers in this arena? Brooks distils it down to four achievements: 1) The object-recognition capabilities of a two-year-old; 2) The language-understanding capabilities of a four-year-old; 3) The manual dexterity of a six-year-old, and 4) The social understanding of an eight-year-old (source: McKinsey)

Does this sombre diatribe suggest that AI stocks are to be avoided for now? There are significant benefits to be had with the state of the art at this juncture, certainly in the next 10 years. You may have to do a little digging and ensure that the early wave of price-hypers has subsided, but there are still jewels to be discovered on the AI landscape.

Several analysts have done this prospecting for you and have prepared lists of future hopefuls with current prices hovering below the $10 level. Here for your review are 10 such suggestions from the efforts of analysts that follow this field of play.

The 10 Best Artificial Intelligence stocks under $10

1. Alithya Group Inc. (NASDAQ:ALYA)
2. Amesite Inc. (NASDAQ:AMST)
3. Cheetah Mobile Inc. (NYSE:CMCM)
4. CooTek [Cayman] Inc. (NYSE:CTK)
5. Duos Technologies Group, Inc. (NASDAQ:DUOT)
6. Ideanomics, Inc. (NASDAQ:IDEX)
7. Innodata Inc. (NASDAQ:INOD)
8. Lantronix, Inc. (NASDAQ:LTRX)
9. Remark Holdings, Inc (NASDAQ:MARK)
10. Vivint Smart Home, Inc. (NYSE:VVNT)

The best AI stocks can typically be found on the Nasdaq exchange, but there are a few on the NYSE, as well. Be sure to review previous pricing behaviour to ensure that prices have not been driven skyward, well beyond the $10 level. Buy on the dips, only if due diligence warrants.

Here are further details on our top 10 picks in alphabetical order:

• Alithya Group Inc. (NASDAQ:ALYA): This Canadian firm is in the financial services provider business. It combines AI with machine learning to support strategy and information technology planning, organisational management, program evaluation, business analysis, systems development, and digital transformation.
• Amesite Inc. (NASDAQ:AMST): This American company is into education and the delivery of related services in the academic arena. Its products serve a wide range of businesses, universities, colleges, and K-12 establishments. It also leverages the Software-as-a-Service (SaaS) revolution by utilising cloud-based payment plans.
• Cheetah Mobile Inc. (NYSE:CMCM): Originating in China, this company developed a series of mobile security apps, which are now used globally by clients in China, the US, and elsewhere. Appropriately named Cheetah for speed, its products have been designed to work in both Android and iOS environments.
• CooTek [Cayman] Inc. (NYSE:CTK): This NYSE company has assembled an elite class of senior managers from Microsoft and has established a reputation for top-of-class mobile software development, distribution, and operation. Due to its stellar beginnings, its stock was hyped some years back, but it has gradually come back to down Earth.
• Duos Technologies Group, Inc. (NASDAQ:DUOT): AI-based security, safety, and analytics solutions are the forte of this firm. The company possesses a strong portfolio of intellectual property, especially for use in the rail transportation industry, DUOT now sits below $6 and is seen as a very good long-term play in the AI arena.
• Ideanomics, Inc. (NASDAQ:IDEX): IDEX is a New York-based company that has branched into several AI trending markets via acquisitions. Investors and traders have difficulty judging what kind of company it is, the reason for its rollercoaster stock price history, gyrating between $1 and $5 over the past five years. Followers sense a long-term play is here, but swing traders are muddying the waters for the moment.
• Innodata Inc. (NASDAQ:INOD): INOD is viewed as a pure AI/ML (machine learning) play in the burgeoning AI market. Its speciality is engineering data analytical tools for companies with massive amounts of data. Its AI-based solutions convert data analysis challenges into workable marketing solutions, a feat in wide demand across the globe. Investors anticipate a boom in the future, possibly why share prices shot up in 2021.
• Lantronix, Inc. (NASDAQ:LTRX): This firm sells ‘Saas’ engineering and hardware services, enhanced by the latest advances in AI technology, to command a share of the “Internet-of-Things (IoT) market. It is a global company with its modern systems and electronic equipment in use in the Americas, the Middle East, Europe, Africa, and the Asia Pacific Japan region. In a way, it is a three-play, taking advantage of formidable trends in Saas, IoT, and AI/ML technology arenas. Its share price has risen gradually for five years, spiking earlier in 2021 to $10. It has since pulled back below $7 – a potential buying opportunity.
• Remark Holdings, Inc (NASDAQ:MARK): Remark employs both AI and ML in its product offerings, which it markets to the global market. It develops solutions for use in software development and for businesses in a variety of industries, including retail, banking, education, entertainment, and public safety. Investors were enamoured with this stock back in 2017, driving prices up to just below $10. Investors may now believe the company needs to focus instead of trying to win in too many areas. As a result, prices now hover about the $1 range.
• Vivint Smart Home, Inc. (NYSE:VVNT): Vivent is one of the larger AI capitalised firms on the NYSE. Its market cap is just under $2bn, but its price has been in a gradual decline. The firm specialises in home automation and security while enabling its customers to connect from anywhere. Some analysts claim this is the best AI bet out there. You be the judge.

Concluding Remarks

What are your next steps if you want to grab the AI tiger by the tail? Delay making any choices until after you have done your homework. The AI field has been over-hyped for the past few years. Current prices may not reflect a true value buy, and whenever a list like this one is published, stock mavens tend to buy at will, and up go the prices. There are also thematic ETFs that focus on this arena, as well, another way to diversify your investment. In either case, your time horizon will be roughly 10 years for these stocks, so there is no rush. Enjoy the process.

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