AI Stocks Under $10 to Buy

The broad basket of artificial intelligence (AI) stocks has sold off steadily in recent months, primarily due to good (but not great) quarterly results and guidance for steady and strong (but not explosive) demand next quarter. It’s undoubtedly difficult to gauge how demand for all things AI will fare a quarter, a year, or even three years from now.

There is fear that a quarterly deficit from a leading semiconductor firm in particular Nvidia (NASDAQ:NVDA) could pull the plug on the entire AI trade. That said, there is also the potential for more positive surprises now that expectations for the future have been slightly reset after the past few months of selling activity.

In this piece, we’ll look at some attractive AI stocks priced under $10. While low share prices are not the same as low valuations (for this, we need to look at different valuations and compare them to our future growth assumptions), low share prices make them more accessible to new retail investors, many of which they do not have access to purchase partial shares of companies with much higher share prices.

Key points about this article

• Some mid-cap AI innovators have share prices within reach of small and new investors.
• Soundhound AI and Nio are two of the most promising AI growth stocks, trading at $5 per share.
• If you’re looking for action with huge potential, be sure to grab our free copy brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

Soundhound AI

At just under $5 per share, Soundhound AI (NASDAQ:SOUN) is an interesting mid-cap tech pick for investors who are comfortable with higher-risk, higher-reward tradeoffs. The Nvidia-backed company has a $1.75 billion market cap and is in the field of AI speech technology, a corner of the AI ​​scene that could experience above-average growth as the personalization factor of large language models (LLM) leads things to the next. level.

Without a doubt, all of our favorite chatbots and digital assistants (think Siri, Alexa, and Cortona) already have natural-sounding voices that become more human-like with each significant update. However, Soundhound AI uses natural language processing (NLP) to capture easily missed nuances in speech to gain a better understanding of users. Indeed, for human-AI communications to advance, next-generation LLMs must read between the lines to understand meaning that less sophisticated LLMs might miss.

Going forward, Soundhound’s voice cloning and customization technology could provide an intriguing avenue for growth. If the firm can really excel at such innovations, I wouldn’t be surprised if the tech titans end up licensing Soundhound’s technology in the future. In addition, the firm also stands out as an excellent takeover target for firms looking to gain an edge in the personalized AI race.

SOUN shares are down more than 50% from their March highs, but are still up more than 115% over the past year. Although expensive at 24.2 times price-to-sales (P/S), I think the risky stock is worth a close watch.

Nope

Nope (NASDAQ:NIO) doesn’t stand out as an AI-getting company until you look under the hood (pardon the pun) of the Chinese electric vehicle (EV) maker. The $10.9 billion EV juggernaut has been in a multi-year bear market, with shares now down nearly 92% from their peak in early 2021. Indeed, shares have tumbled and have burned, but there could be deep value in the stock for investors looking for an electric vehicle firm that is in some investors’ blind spot.

Nio recently revealed that August shipments fell to 577,694, marking the second straight month in the red. Indeed, some of the blame lies with Nio, but I think most of it is due to the weak economic climate in China. Looking ahead, AI technology may be the reason to give long-timers the benefit of the doubt while it costs $5 and changes per share.

Earlier this year, the company recently developed a 5nm system-on-a-chip (SoC) called the Shenji NX9031 for autonomous driving. As the firm aims to turn vehicles into AI-powered computers, I think it’s a mistake to take the firm out while it’s in a historical funk. At 1.19x P/S, you’re getting a lot of AI innovation for an absurdly low multiple.

Given that the stock has recently received a significant upgrade from JP Morgan (NYSE:JPM) analyst Nick Lai, who raised his price target to $8.00 from $5.30, may now be the time to buy the dip.

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