10 Best Affordable AI Stocks to Buy

2. Stagwell Inc. (NASDAQ:STGW)

Forward P/E: 6.99

Analyst Upside: 55.42%

Number of Hedge Fund Holders: 19

Stagwell Inc. (NASDAQ:STGW) is one of the best affordable AI stocks to buy. On August 1, Morgan Stanley lowered the price target on Stagwell Inc. (NASDAQ:STGW) stock from $8 to $7, maintaining its Hold rating.

Benjamin Swinburne from Morgan Stanley slightly adjusted the price target on STGW following the Q2 FY2025 results. The company posted revenue of $707 million, up by 5% year-over-year and surpassing estimates by $14.04 million. Stagwell is experiencing strong growth in its digital transformation segment, citing a 12% rise excluding advocacy. The company is investing in AI and new technologies to reduce costs by nearly 15% and enhance efficiency. The analyst remains optimistic on STGW; however, the company is facing challenges in integrating recent acquisitions and scaling technology initiatives.

Despite the challenges, Stagwell expanded its top client relationships with the top 25 customers, generating $175 million in net revenue, a 26% increase from a year ago. Stagwell has reiterated its full-year 2025 guidance and expects total net revenue to grow by almost 8% and expects adjusted earnings per share between $0.75-$0.88.

Stagwell Inc. (NASDAQ:STGW) is a digital-first marketing company that uses AI across its various digital tools to enhance creative, media, and communications workflows. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and the Communications Network.