In this article, we will discuss the 10 Best AI Stocks to Buy Under $3.
Amid the tech-driven stock market rally sparked by the AI boom, trade tensions are quietly resurfacing, posing serious implications. Cost structures across the AI value chain could be reshaped, as comments made on August 5 by the President indicate imminent tariffs on semiconductors. While no figure has been disclosed, the mention of tariffs “within the next week or so” has drawn the attention of stakeholders in the AI market. Already, Donald Trump has successfully secured a $165 billion U.S. investment from Taiwan Semiconductor and is seeking an additional $300 billion. Thus, it’s clear that the focus is on domestic production, and investors must factor in trade risks in their AI bets.
Meanwhile, innovative AI solutions continue to emerge. One of the most recent and innovative launches is iLEVEL Document Search, which uses natural language AI to extract deep insights from complex private market documents. It enables smarter decisions by helping professionals uncover hidden portfolio trends with speed and precision. Thus, AI is not only redefining hardware but also the entire business processes, offering low-priced AI companies an opportunity to lead in specialized niches.
With this backdrop in mind, let’s move on to our list of the 10 Best AI Stocks to Buy Under $3.
Photo by Maximalfocus on Unsplash
Our Methodology
To curate our list of the 10 Best AI Stocks to Buy Under $3, we used the Finviz screener to identify AI stocks trading under $3 share price. We assessed the hedge fund sentiment surrounding the shortlisted stocks, using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds. Finally, we present our list of the 10 Best AI Stocks to Buy Under $3 in ascending order based on the number of hedge funds holding stakes in the respective stocks as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. FiscalNote Holdings, Inc. (NYSE:NOTE)
Share Price as of August 5, 2025: $0.62
Number of Hedge Fund Holders: 15
FiscalNote Holdings, Inc. (NYSE:NOTE) is included in our list of the 10 Best AI Stocks to Buy Under $3.
Within its flagship platform, PolicyNote, FiscalNote Holdings, Inc. (NYSE:NOTE) launched a powerful social media listening feature on August 4, 2025. This feature aims to enhance how users track early signals of legislative intent. This feature uses real-time discussions from platforms like X, Truth Social, Bluesky, and CQ News, leveraging AI to extract key mentions and sentiment shifts among lawmakers before policy reaches the finalization stage.
With this new feature, FiscalNote Holdings, Inc. (NYSE:NOTE) offers personalized alerts and smart recommendations for tracking, transforming how policy professionals anticipate regulatory developments. Furthermore, it allows them to access actionable insights to refine messaging and discover new influencers.
FiscalNote Holdings, Inc. (NYSE:NOTE) strengthens its AI-driven platform by integrating policy data, news, and now social intelligence in one streamlined dashboard.
FiscalNote Holdings, Inc. (NYSE:NOTE) helps businesses and institutions anticipate policy shifts, manage risk, and streamline decision-making through data-driven insights and workflow tools. It is included in our list of the best AI stocks.
9. 8×8, Inc. (NASDAQ:EGHT)
Share Price as of August 5, 2025: $1.91
Number of Hedge Fund Holders: 16
With a share price under $3 and strong hedge fund interest, 8×8, Inc. (NASDAQ:EGHT) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3.
On August 5, 2025, 8×8, Inc. (NASDAQ:EGHT) released its results for Q1 2026. The company reported strong performance, achieving year-over-year growth for the first time in nine quarters. The service revenue for the quarter reached $176.3 million, which was above the high end of guidance and marked a 2% YoY improvement. This was driven by usage-based revenue, which increased by 30%, particularly due to CPaaS solutions.
Meanwhile, 8×8, Inc. (NASDAQ:EGHT) reported a 67.8% gross profit dip due to the shift toward lower-margin consumption-based services. Yet, the company’s focus on innovation paid off, as its 8×8 Voice for Teams license sales grew 30%. Furthermore, NOTE was named a top 5 Operator Connect partner. The company’s financial health was bolstered by a positive cash flow of over $11 million and a 40% debt reduction since 2022. This quarter was its 18th straight period of positive operating cash flow. Looking ahead, FX pressures and continued challenges from the Fuze platform are expected to impact the company’s short-term guidance.
8×8, Inc. (NASDAQ:EGHT) helps businesses deliver smarter customer experiences with its AI-powered communication and customer engagement solutions. It is included in our list of the best AI stocks.
8. SmartRent, Inc. (NYSE:SMRT)
Share Price as of August 5, 2025: $0.99
Number of Hedge Fund Holders: 17
SmartRent, Inc. (NYSE:SMRT) is included in our list of the 10 Best AI Stocks to Buy Under $3.
SmartRent, Inc. (NYSE:SMRT)’s year so far is marked by volatility, strategic shifts, and cautious optimism.
In March 2025, KBW reduced its price target on SmartRent, Inc. (NYSE:SMRT) from $2.00 to $1.60. This price revision followed weak Q4 results, where the company reported a wider-than-expected adjusted EBITDA loss of $7.4 million due to hardware revenue and margin declines. Roughly two months later, in May, KBW further lowered the target to $1.30 due to limited forward guidance.
Meanwhile, on July 4, 2025, SmartRent, Inc. (NYSE:SMRT) achieved a key milestone. The company regained compliance with the New York Stock Exchange’s minimum share price requirement, bolstering investor sentiment.
While analysts remain cautious on SmartRent, Inc. (NYSE:SMRT) in the short term, they remain optimistic about the company’s long-term outlook due to its robust liquidity, focus on cost discipline, and strategic developments within AI-powered operations.
With its integrated hardware and cloud-based platforms, SmartRent, Inc. (NYSE:SMRT) offers AI-enabled smart building solutions and management software. It is included in our list of the best AI stocks.
7. Conduent Incorporated (NASDAQ:CNDT)
Share Price as of August 5, 2025: $2.46
Number of Hedge Fund Holders: 19
With a share price under $3 and strong hedge fund interest, Conduent Incorporated (NASDAQ:CNDT) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3.
Conduent Incorporated (NASDAQ:CNDT) entered into a strategic partnership with Fairmarkit, an AI-powered sourcing platform. With this move, CNDT will supercharge its FastCap Finance Analytics solution, streamlining procurement workflows and enhancing sourcing accuracy, while enabling new cost-saving opportunities. The platform has already generated over $800 million in savings since 2021.
Furthermore, Fairmarkit’s autonomous technology will help Conduent Incorporated (NASDAQ:CNDT) achieve an additional 3-6% in savings. This collaboration integrates real-time analytics with automated bidding and expanded supplier options, offering a toolkit that allows businesses to optimize tail spend and ensure compliance.
Conduent Incorporated (NASDAQ:CNDT) offers digital business solutions by leveraging AI, automation, and data analytics. It is included in our list of the best AI stocks.
6. Eventbrite, Inc. (NYSE:EB)
Share Price as of August 5, 2025: $2.47
Number of Hedge Fund Holders: 20
Eventbrite, Inc. (NYSE:EB) is included in our list of the 10 Best AI Stocks to Buy Under $3.
Eventbrite, Inc. (NYSE:EB) launched new music-focused features on June 17, 2025. With this update, the company offers a “lineup” tool, allowing independent artists and organizers to highlight performances with artist profiles, photos, and links. Furthermore, this feature will sync across platforms like Bandsintown, Google Events, and soon, Spotify.
With this, Eventbrite, Inc. (NYSE:EB) bridges digital discovery with real-world audiences, offering major-market exposure to smaller venues at no additional cost. As 95% of young adults are eager to translate their online interests into in-person experiences, this upgrade aligns with the ongoing trend. Having handled 35 million music ticket sales in 2024, Eventbrite, Inc. (NYSE:EB) is also launching tools like VIP guest management and “Buy Now, Pay Later” for U.S. customers.
Eventbrite, Inc. (NYSE:EB), a global events marketplace, integrates AI-powered tools to streamline operations, attract audiences, and boost ticket sales for event creators. It is included in our list of the best AI stocks.
5. TTEC Holdings, Inc. (NASDAQ:TTEC)
Share Price as of August 5, 2025: $2.94
Number of Hedge Fund Holders: 21
With a share price under $3 and strong hedge fund interest, TTEC Holdings, Inc. (NASDAQ:TTEC) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3.
On August 1, 2025, TTEC Holdings, Inc. (NASDAQ:TTEC) announced Chairman and CEO Kenneth Tuchman’s decision not to pursue his prior proposal to take the company private. With the preliminary, non-binding offer made in September 2024, Tuchman expressed his intention to acquire all outstanding shares not already held by him and his affiliates.
However, Tuchman reversed his decision to make TTEC Holdings, Inc. (NASDAQ:TTEC) private, citing market conditions. Looking ahead, the board remains confident in the company’s leadership, reaffirming its commitment to delivering long-term shareholder value as a public entity.
This development comes shortly before TTEC Holdings, Inc. (NASDAQ:TTEC)’s Q2 2025 earnings release, scheduled for August 7, 2025.
With its AI-powered, digital-first customer experience (CX) solutions, TTEC Holdings, Inc. (NASDAQ:TTEC) helps enterprises create seamless, intelligent, and personalized interactions across all customer interaction channels. It is included in our list of the best AI stocks.
4. 3D Systems Corporation (NYSE:DDD)
Share Price as of August 5, 2025: $1.74
Number of Hedge Fund Holders: 22
3D Systems Corporation (NYSE:DDD) is included in our list of the 10 Best AI Stocks to Buy Under $3.
On June 24, 2025, 3D Systems Corporation (NYSE:DDD) successfully restructured its debt, retiring $88 million in debt, issuing new notes maturing in 2030, and repurchasing 8 million shares to reduce dilution. With this move, the company aims to enhance its financial flexibility.
Meanwhile, on June 26, 2025, 3D Systems Corporation (NYSE:DDD) achieved a critical medical breakthrough. Its 3D bioprinted, bioabsorbable nerve repair device, developed in partnership with TISSIUM, received FDA approval. This regulatory approval strengthens the company’s leadership in regenerative medicine, following years of innovation in printing living tissues.
Therefore, 3D Systems Corporation (NYSE:DDD) is well-positioned to redefine the possibilities of additive manufacturing with its strong balance sheet and ongoing progress in healthcare.
With the help of its AI-driven software, 3D Systems Corporation (NYSE:DDD) delivers precision additive manufacturing solutions, serving aerospace, healthcare, materials, and bioprinting segments. It is included in our list of the best AI stocks.
3. Wolfspeed, Inc. (NYSE:WOLF)
Share Price as of August 5, 2025: $1.50
Number of Hedge Fund Holders: 25
With a share price under $3 and strong hedge fund interest, Wolfspeed, Inc. (NYSE:WOLF) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3.
On August 5, 2025, Wolfspeed, Inc. (NYSE:WOLF) appointed Bret Zahn as Vice President and General Manager of its Automotive business, strengthening its commitment to the EV revolution. This move enhances the company’s automotive product roadmap to meet soaring EV demand, as Zahn brings 35 years of experience, including growing SiC operations at Onsemi.
Furthermore, this appointment is in line with Wolfspeed, Inc. (NYSE:WOLF)’s strategic investments in U.S.-based SiC manufacturing, including recent leadership enhancements. Looking ahead, the company remains optimistic about scaling innovation and securing global automotive partnerships, solidifying its position within the electrified transportation market.
Wolfspeed, Inc. (NYSE:WOLF) offers AI-driven, cutting-edge silicon carbide (SiC) semiconductor technologies. It is included in our list of the best AI stocks.
2. Expensify, Inc. (NASDAQ:EXFY)
Share Price as of August 5, 2025: $2.07
Number of Hedge Fund Holders: 25
Expensify, Inc. (NASDAQ:EXFY) is included in our list of the 10 Best AI Stocks to Buy Under $3.
On July 1, 2025, Expensify, Inc. (NASDAQ:EXFY) announced a $3 million share repurchase, acquiring over 1.28 million shares between May 15 and June 27. Demonstrating confidence in its growth trajectory, the company bought these shares at an average price of $2.33.
Meanwhile, on June 25, Expensify, Inc. (NASDAQ:EXFY) announced its international expansion. With this expansion, the company added support for over 10,000 global banks, Euro billing, multilingual capabilities, and a beta launch of its Expensify Card in the U.K. and EU. EXFY has now enabled expenses, cards, and reimbursements management for businesses worldwide within one AI-powered platform.
Operating in the U.S. and the rest of the world, Expensify, Inc. (NASDAQ:EXFY) offers a cloud-based financial management platform. It is included in our list of the best AI stocks.
1. Sabre Corporation (NASDAQ:SABR)
Share Price as of August 5, 2025: $2.98
Number of Hedge Fund Holders: 32
With a share price under $3 and strong hedge fund interest, Sabre Corporation (NASDAQ:SABR) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3.
Amid rising concerns from global travel agencies over fragmented content systems, Sabre Corporation (NASDAQ:SABR) announced the launch of SabreMosaic on July 22, 2025. A survey conducted by SABR revealed that over 91% of agencies shuffle between four or more booking systems, hampering productivity and resulting in higher costs. Furthermore, more than half manage seven or more systems. Thus, the company felt the need for unified, intelligent solutions.
To address this, Sabre Corporation (NASDAQ:SABR) integrates the industry’s widest content portfolio with built-in AI tools, streamlining workflows, delivering smarter recommendations, and reducing tech overhead. SabreMosaic serves over 38 NDC airlines, 150+ low-cost carriers, and millions of lodging options, and it does this with just a single flexible connection.
Thus, Sabre Corporation (NASDAQ:SABR), moving past traditional Global Distribution System (GDS) models, offers smarter, not just more, content. Moreover, the fact that 91% of agencies recognize AI’s value in improving service and efficiency bolsters the company’s future prospects.
Leveraging AI, Sabre Corporation (NASDAQ:SABR) helps agencies and suppliers streamline content access, enhance personalization, and improve efficiency in a fragmented global travel landscape with its cloud-native travel marketplace and SaaS platforms. It is included in our list of the best AI stocks.
While we acknowledge the potential of SABR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SABR and that has 100x upside potential, check out our report about this cheapest AI stock.
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