Artificial intelligence (AI) is an industry experiencing rapid growth, bringing about revolutionary changes in various sectors. The market for AI is projected to witness substantial expansion in the next decade. With its current value close to 100 billion U.S. dollars, experts anticipate it to soar twentyfold by 2030, reaching nearly two trillion U.S. dollars. Amidst the fervent pursuit of a competitive edge within their individual markets, numerous enterprises are directing substantial investments towards AI technology. This dynamic trend has resulted in a remarkable upsurge in the demand for AI stocks. Companies recognize the transformative potential of AI, and their eagerness to harness its power fuels this escalating interest in AI-focused investments. In this article, Trendbbq.com will explore the top five artificial intelligence stocks under $10 that offer promising growth potential for the year 2023.
1. What are AI Stocks?
AI stocks represent shares in companies deeply engaged in the advancement, implementation, and utilization of artificial intelligence (AI) technologies. These enterprises delve into cutting-edge innovations, spearheading the realm of AI with their expertise and vision. These companies specialize in creating AI software, hardware, and solutions that can analyze data, learn from it, and make intelligent decisions or predictions without explicit programming.
Investing in AI stocks allows individuals and investors to participate in the growth and potential profitability of the AI industry. The escalating prominence of AI across diverse sectors, including healthcare, finance, autonomous vehicles, customer service, and beyond, propels companies operating in the AI domain toward substantial growth and market triumph.
AI stocks are pervasive, spanning a multitude of sectors such as technology, healthcare, finance, and consumer goods. This diverse presence showcases the wide-ranging applications of AI, making it an indispensable force in contemporary business landscapes. Some of the well-known AI companies include Alphabet Inc. (Google), Amazon, Microsoft, IBM, NVIDIA, and many more.
It remains imperative to acknowledge that investing in AI stocks, akin to any form of investment, entails inherent risks. Prudent investors must meticulously conduct research and diligently assess the financial well-being, business framework, and enduring growth potential of companies before arriving at any investment verdicts.
Investors should be astute in their approach, ensuring a comprehensive evaluation of the companies they contemplate investing in. Vigilant consideration of financial indicators, business strategies, and the potential for sustained expansion is pivotal in making sound investment choices within the dynamic realm of AI stocks.
2. 5 Artificial Intelligence Stocks Under $10 to buy
Ideanomics (IDEX)
Ideanomics is an emerging player in the fintech and electric vehicle (EV) industries. The company operates two segments that harness the power of AI to enhance user experiences. Firstly, its mobility segment provides electrification solutions tailored for commercial fleet operators. This includes advanced forecasting, inventory benchmarking, and charging infrastructure services, among others. The second division focuses on fintech solutions, leveraging cutting-edge technology and innovation.
The company Ideanomics has been undergoing a remarkable period of swift expansion, with its revenue witnessing an astounding triple-digit growth in the past year. Of particular significance is its most recent quarter, where sales soared by an impressive 155%, surging to $27 million in comparison to the same quarter of the previous year. Notably, the company’s gross margins are displaying a positive trend, ascending to even higher levels, boding well for its financial performance and future prospects. With a substantial cash reserve exceeding $250 million, Ideanomics is well-positioned to drive further expansion initiatives.
However, it’s essential to acknowledge the company’s considerable debt burden, which adds an element of risk to investing in IDEX stock. Despite this, the potential for substantial gains remains high, thanks to its pioneering offerings and innovative approach to the market. As with any investment, prudent evaluation and consideration of risk factors are crucial before making investment decisions related to IDEX stock.
Rekor Systems (REKR)
Rekor Systems is a leading provider of advanced vehicle recognition solutions, utilizing cutting-edge AI-powered video technology to offer highly efficient automated services to its clientele. Its expertise in AI and machine learning enables accurate identification of vehicles and license plates, resulting in top-notch service delivery at reduced costs.
The company is currently undergoing a strategic shift, transitioning from a direct-sales approach to a subscription-based model. This shift is expected to bring about higher profit margins and recurring revenues. While its revenues during the latest quarter saw a 23% increase compared to the previous year, they were lower than the previous quarter.
Rekor Systems’ management is confident that the long-term benefits of this business transition will far outweigh any short-term losses. They believe that the company’s incredible outlook and potential for growth make REKR stock an attractive long-term investment option. As with any investment decision, careful consideration and evaluation of the company’s strategies and market potential are essential before making any investment in REKR stock.
Amesite INC
Amesite is a company that offers a unique Learning Community Environment AI platform, which is designed to cater to the needs of corporate partners seeking efficient compliance and staff training solutions. While initially serving other businesses with their services, the real promise of Amesite lies in its groundbreaking AI platform that sets it apart in the industry.
Cootek (Cayman) Inc
Cootek is a prominent “global mobile internet company” that specializes in developing mobile phone-based products. One of its key strengths lies in its proprietary AI engine, which efficiently gathers pertinent information to offer clients captivating online literary products that perfectly complement their widely acclaimed mobile games.
Lantronix
Lantronix is a reputable provider of internet of things (IoT) solutions catering to a diverse range of applications for its valued customers. Despite operating in a competitive sector, the company has achieved exceptional growth rates in recent years, witnessing a rapid surge in revenue. Consequently, its strong top-line growth has consistently led to positive financial outcomes.
Notably, Lantronix experienced significant expansion in both its sales and profits during the pandemic, with an impressive year-over-year sales growth of 103%.
Looking ahead, the company anticipates a remarkable 57% to 78% increase in year-over-year revenues for fiscal 2022. Furthermore, the potential improvement in margins through the expansion of its software as a service (SaaS) platform adds to the positive outlook. As such, LTRX stock appears to be one of the most promising AI stocks available in the current market.
3. Why invest in AI stocks?
Valuing stocks in the AI sector is often based on projected future earnings. The immense potential of AI technology indeed positions companies achieving significant breakthroughs to undergo exponential revenue growth in the future. Such remarkable growth trajectories can, in turn, trigger a surge in their stock prices, akin to the notable instances witnessed with early-stage companies like Microsoft and Apple in their heydays.
Furthermore, investing in AI stocks can serve as a strategic hedge against potential declines in the value of other stocks in one’s portfolio, driven by the inexorable march of technological advancements. The dynamic and transformative nature of AI holds the promise of resilience amid technological shifts, making AI-focused investments a prudent diversification strategy for investors seeking stability and growth amidst evolving market landscapes. Even holding small positions in AI stocks allows you to closely observe the sector’s growth, which can provide valuable insights into the performance of your other investments.
AI is a disruptive technology, and as it continues to integrate into the economy, there will be both winners and losers. Esteemed investor Warren Buffett has emphasized the importance of monitoring these developments. In conversations with his investors, he has highlighted the significance of staying informed about the advancements in the AI industry. Speaking to his investors, he said:
“I would certainly think they [artificial intelligence developments] would result in significantly less employment in certain areas, but that’s good for society… It may not be good for a given business.”
Source: Carrier Management
4. What to know before investing in AI stocks?
Investing in AI can be challenging due to the specialized knowledge required to fully comprehend the sector. Unless you have the time and dedication to pursue a Master’s degree in robotics, you’ll likely rely on research and analysis from third-party sources.
Retail investors, however, possess an advantage in their ability to assess whether a product is genuinely needed or just a novel concept. But reaching that level of judgment necessitates placing trust in the opinions of experts.
Regrettably, even among experts, there are differing views on the extent of AI capabilities and potential hype. For instance, Rodney Brooks, a MIT roboticist and co-founder of iRobot, believes that we won’t see Artificial General Intelligence (AGI) until around 2030. This divergence in expert opinions adds further complexity to the AI investment landscape.
In summary, these top five artificial intelligence stocks under $10 promising growth opportunities for investors in the AI industry for the year 2023. Given the rising demand for AI technology, these stocks hold the potential to deliver substantial returns on investment. Nevertheless, it is essential for investors to perform thorough due diligence before making any investment decisions.
