In this article, we will discuss the 10 Cheap AI Stocks to Buy According to Analysts.
On May 15, Alex Guiliano, CIO of Resonate Wealth Partners, joined BNN Bloomberg to suggest that valuations internationally look like an opportunity for investors to take advantage of. Guiliano noted that a drop in US futures reflects growing uncertainty, exacerbated by noisy inflation data, geopolitical conflict in Iran, and the upcoming midterm elections. To withstand sudden shifts in sentiment, he advises investors to avoid speculative narratives and focus on high-quality companies with strong cash flows and durable profits. He favors the US financial, healthcare, and select big tech sectors, provided those tech companies have a clearly defined AI strategy rather than just borrowed excitement.
Regarding bubble concerns over the hundreds of billions of dollars pouring into AI, Guiliano counselled against trying to time the market. He views the trend as a structural investment boom and recommends focusing on companies with diverse profit centers and the financial strength to pivot or scale back if their AI investments fail to pan out. He points to a recent pullback in SaaS names as an example of the risks of buying into pure narratives, reiterating that financials and healthcare offer better opportunities because they have not ridden the tech wave nearly as much.
Our Methodology
We used screeners to identify AI stocks that are trading below a forward P/E of 15 and have an upside potential of at least 20%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among elite hedge funds and are ranked in ascending order of their upside potential.
Note: All data was sourced on May 21.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Cheap AI Stocks to Buy According to Analysts
10. UiPath Inc. (NYSE:PATH)
Average Upside Potential: 22.99%
UiPath Inc. (NYSE:PATH) is one of the cheap AI stocks to buy according to analysts. On April 27, UiPath and Deloitte expanded their collaboration to accelerate software development, testing, and deployment for global organizations. The joint solution integrates UiPath Test Cloud capabilities into Deloitte’s Ascend engineering and service delivery platform.
The partnership focuses heavily on agentic AI, enabling autonomous quality through AI agents that work alongside human testers. Powered by agentic AI, the solution proactively detects system changes, generates tests, and executes them autonomously. Testers can use these AI agents to analyze thousands of test results, identify root causes, and uncover failure patterns.
By embedding UiPath Inc. (NYSE:PATH) Autopilot for Testers and Agent Builder into Ascend, teams can utilize prebuilt testing bots and domain-specific AI agents. This AI-driven integration is designed to automate manual tasks like test design and reduce maintenance through self-healing execution, resulting in broader test coverage, faster release cycles, and higher automation ROI.
UiPath Inc. (NYSE:PATH) is an AI-powered software infrastructure company that integrates generative and agentic AI with robotic process automation/RPA through its primary offering, the UiPath platform.
9. DoubleVerify Holdings Inc. (NYSE:DV)
Average Upside Potential: 26.05%
DoubleVerify Holdings Inc. (NYSE:DV) is one of the cheap AI stocks to buy according to analysts. On May 18, DoubleVerify launched AI-powered pre-screen content controls on Meta’s Threads feed to enhance brand protection for advertisers. This capability allows brands to avoid content they deem unsuitable before impressions are transacted, building upon DV’s existing post-bid brand suitability measurement on the platform.
The solution is powered by DoubleVerify Holdings Inc. (NYSE:DV) Universal Content Intelligence, an AI-driven classification engine that analyzes video, image, audio, and text signals. For video content, the AI reviews material frame by frame using key frame extraction to deliver precise, accurate, and scalable content classification across the feed.
The AI-powered controls automatically identify and avoid content falling under DV’s Brand Risk Floor and Suitability Tiers, alongside 30 additional content-level avoidance categories. These protection settings are refreshed automatically on an hourly basis to ensure continuous, hands-free protection as Threads content evolves.
DoubleVerify Holdings Inc. (NYSE:DV) is a provider of an AI-powered media effectiveness platform. Its primary offerings include AI-based digital campaign optimization solutions and machine learning models designed to analyze digital media quality, fraud, and advertising impact.
8. Upstart Holdings Inc. (NASDAQ:UPST)
Average Upside Potential: 26.52%
Upstart Holdings Inc. (NASDAQ:UPST) is one of the cheap AI stocks to buy according to analysts. On May 19, Upstart appointed Tim Wennes to its Board of Directors, effective May 28. He succeeds Jeff Huber, who is stepping down after five years of service on the company’s board. Wennes brings over 35 years of financial services experience, having recently served as President and CEO of Santander Holdings USA, where he led a digital and strategic transformation.
His background includes executive leadership roles at MUFG Union Bank and Countrywide Bank, with experience across segments of consumer lending, particularly automotive finance. While this announcement focuses on executive governance rather than a technical product launch, both leadership and Wennes highlighted the appointment as a strategic move during a period when AI is becoming essential to financial services.
Earlier on May 5, in its Q1 2026 earnings report, Upstart Holdings Inc. (NASDAQ:UPST) reported that the company advanced its AI models in the quarter to continue driving its core platform. More than 100 banks and credit unions use Upstart’s AI models and cloud applications to offer credit products, enabling lenders to approve more borrowers at lower rates while providing a digital-first experience. During Q1, 91% of the loans facilitated on Upstart’s marketplace were fully automated.
Upstart Holdings Inc. (NASDAQ:UPST) operates a cloud-based AI lending platform that uses ML models to assess credit risk and process unsecured personal loans, small-dollar loans, HELOCs, and auto refinance and retail loans.
7. Adobe Inc. (NASDAQ:ADBE)
Average Upside Potential: 27.00%
Adobe Inc. (NASDAQ:ADBE) is one of the cheap AI stocks to buy according to analysts. On April 20, Adobe announced a brand visibility solution, expanding Adobe Experience Manager/AEM with a contextual layer designed to optimize digital channels for both humans and AI discovery surfaces. This initiative addresses the massive 269% year-over-year increase in AI-driven traffic to retail sites by helping brands manage how AI systems interpret their offerings.
The solution operates on an “experience flywheel” model (encompassing sense, generate, reach, and learn vectors) powered by collaboration between humans and AI agents. It introduces the Adobe LLM Optimizer and Adobe Commerce enhancements to assess brand visibility across LLM-powered experiences, alongside LLM Apps to run branded experiences directly within external AI interfaces.
Central to this launch are three new domain-specific AI agents embedded into AEM Sites to automate content workflows. The Brand Experience Agent accelerates content production for AI discovery, the Content Advisor Agent surfaces approved assets instantly, and the Brand Governance Agent automatically enforces brand policies, asset rights, and regulatory compliance.
Adobe Inc. (NASDAQ:ADBE) is a provider of multimedia and digital marketing software such as Photoshop, Illustrator, and InDesign, among others. It also offers AI products such as Adobe Firefly and Adobe Sensei.
6. Baidu Inc. (NASDAQ:BIDU)
Average Upside Potential: 37.10%
Baidu Inc. (NASDAQ:BIDU) is one of the cheap AI stocks to buy according to analysts. On May 18, Baidu announced its unaudited financial results for Q1 2026, reporting total revenue of RMB 32.1 billion. For the first time, the company’s Core AI-powered Business exceeded half of its total General Business revenue, reaching RMB 13.6 billion (a 49% year-over-year increase) and solidifying AI as Baidu’s primary growth driver.
The financial momentum was led by AI Cloud Infrastructure, which grew 79% year over year to RMB 8.8 billion, fueled by a 184% surge in GPU Cloud revenue. In parallel, Baidu’s autonomous ride-hailing service, Apollo Go, delivered 3.2 million fully driverless rides (a 120% year-over-year increase) while expanding its global footprint to 27 cities across Europe, the Middle East, and Asia.
On the product front, Baidu launched its ERNIE 5.1 LLM, which topped Chinese model rankings on the text and search leaderboards. The company also advanced its AI Applications division by launching DuMate, a general-purpose productivity agent; Miaoda 3.0, an enterprise vibe coding platform; and Famou Agent 2.0, a self-evolving ML agent that established a new state-of-the-art record on MLE-Bench.
Baidu Inc. (NASDAQ:BIDU) is an internet service and AI company that provides AI-powered search, online entertainment, and conversational marketing services. The company integrates its proprietary ERNIE foundation models across its mobile ecosystem, core search functionality, and online marketing infrastructure.
While we acknowledge the potential of BIDU 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 BIDU and that has 100x upside potential, check out our report about the cheapest AI stock.
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