In this piece, we discuss the 10 Best Low-Priced AI Stocks to Buy Right Now.
The AI trade appears to be entering a new phase, creating opportunities for investors priced out of megacap valuations.
On July 6, 2026, Reuters reported that Morgan Stanley flagged recent weakness in U.S. semiconductor stocks as a sign that market gains are broadening, with capital likely rotating toward AI hyperscalers, consumer discretionary, transport, and biotechnology shares. The brokerage noted that hyperscalers could benefit as the AI cycle shifts, even as clear evidence that AI products generate returns sufficient to justify the spending remains elusive.
That shift is unfolding as investors continue to assess the broader AI spending outlook.
On June 30, 2026, Reuters reported that Microsoft, Alphabet, and Amazon, among five companies, are forecasting combined capital expenditures of roughly $730 billion this year, according to JPMorgan. Nicolas Janvier, head of North American equities at Columbia Threadneedle Investments, said the market has priced in that this level of spending will persist. Meanwhile, Garrett Melson of Natixis Investment Managers Solutions cautioned that crowded positioning leaves the trade vulnerable to any doubt in the narrative.
With semiconductor stocks pulling back this month after an 11% gain in June and major IPOs from Anthropic and OpenAI expected to compete for investor capital, we turn our attention to low-priced AI stocks that could benefit from expanding market participation.
Our Methodology
To curate our list for this article, we screened for AI and AI beneficiary stocks priced below $50, based on the last close as of July 8, 2026, with 20%+ analyst upside. From this universe, we selected the 10 stocks with the most recent news and developments and ranked them in ascending order based on the number of hedge funds holding each stock as of Q1 2026, according to Insider Monkey’s database.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Innoviz Technologies Ltd. (NASDAQ:INVZ)
Number of Hedge Fund Holders: 8
Upside Potential: 157.27%
Innoviz Technologies Ltd. (NASDAQ:INVZ) draws significant attention from Wall Street and hedge fund institutions, helping it secure a spot on our list of the best low-priced AI stocks to buy right now. The company’s LiDAR technology is increasingly being adopted beyond the automotive market for which it was originally developed, with its latest expansion focused on the defense sector.
On July 7, 2026, Innoviz Technologies Ltd. (NASDAQ:INVZ) announced a partnership with Cogniteam Ltd. to launch an advanced Counter-UAS (C-UAS) perception module. The collaboration pairs Innoviz’s automotive-grade LiDAR sensors with Cogniteam’s AI-driven perception software, letting system integrators and security providers deploy drone detection, localization, tracking, and classification systems more quickly.
The module builds on more than a year of joint deployments of Cogniteam’s ClearZone platform alongside Innoviz LiDARs, covering perimeter protection, critical infrastructure security, and border surveillance. Those deployments showed the benefits of high-resolution 3D LiDAR in settings where accuracy and low false alarm rates matter most. Cogniteam’s AI-driven 3D analytics engine studies object shape, motion, flight behavior, and 3D signatures to tell drones apart from birds and other airborne objects.
Innoviz Technologies Ltd. (NASDAQ:INVZ) founder and CEO Omer Keilaf described the company’s LiDAR as giving defense systems precise 3D threat positioning, calling it proven automotive technology applied to a pressing security need. Cogniteam CEO Dr. Yehuda Elmaliah added that pairing accurate detection with reliable classification is difficult using conventional sensors.
Innoviz Technologies Ltd. (NASDAQ:INVZ) manufactures automotive-grade LiDAR sensors and perception software designed to support autonomous driving at scale.
9. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 14
Upside Potential: 98.50%
SoundHound AI, Inc. (NASDAQ:SOUN), featuring significant analyst and hedge fund interest, is one of the best low-priced AI stocks to buy right now. The company’s pending acquisition of LivePerson has entered a new phase, with an amended merger agreement providing greater clarity on the transaction’s structure and path to closing.
On July 2, 2026, SoundHound AI, Inc. (NASDAQ:SOUN) and LivePerson, Inc. signed an amended and restated merger agreement restructuring their planned two-step merger.
Under the revised terms, LivePerson will become an indirect wholly owned subsidiary of SoundHound AI, Inc. (NASDAQ:SOUN). The agreement lays out a stock-based consideration formula for LivePerson shareholders, a capped cash payout for shares trading on the Tel Aviv Stock Exchange, and specific treatment for outstanding options and RSUs. The parties noted the mergers are not expected to qualify as tax-free for U.S. federal income tax purposes.
Completion remains subject to customary conditions, including LivePerson stockholder approval, regulatory clearances, Nasdaq listing of the new SoundHound shares, an effective Form S-4, and completion of related notes restructuring. The agreement includes no-solicitation provisions for LivePerson, allows both parties to terminate the deal under certain conditions, sets an outside closing date that may be extended to December 5, 2026, and requires LivePerson to pay SoundHound a $5 million termination fee, along with certain expenses, in specified circumstances.
That update follows SoundHound AI, Inc. (NASDAQ:SOUN)’s original April announcement of the acquisition, structured at an equity value of $43 million, roughly a 22% premium to LivePerson’s 30-day volume-weighted average value, implying a total enterprise value of $250 million once debt discounts were factored in.
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice and agentic AI company offering voice AI solutions to businesses. It is based in Santa Clara, California.
