10 Cheap AI Stocks to Buy in 2023

Published on April 25, 2023 at 5:21 pm by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at 10 cheap AI stocks to buy in 2023. To skip our detailed analysis of the artificial intelligence sector, you can go directly to see the 5 Cheap AI Stocks to Buy in 2023.

The artificial intelligence sector has long been a prized area in the technology industry which has transformed the global economy. The sector has wide-reaching applications in a diverse range of industries, such as interactive media and entertainment and even cybersecurity. The AI market is thus highly diverse and immensely large, valued at about $119.78 billion in 2022, as we mentioned in a previous article. This market size can perhaps be best attributed to the importance of AI and machine learning (ML) in the operations of various businesses.

The Rise of AI and ML

According to a report by Rackspace Technology published in February, a survey revealed that AI and ML were second only to cybersecurity when it came to the most important technologies for businesses today. The survey polled about 1420 IT professionals across the globe in several industries, including financial services, manufacturing, retail, hospitality, government, and healthcare. Of all the respondents, 69% of them ranked AI and ML as a high priority in their organizations in 2023. The survey further showed that companies today are using AI and ML to improve processes, predict business performance and industry trends, and reduce business risks.

The report also showed a focus on sustainability when it comes to these technologies. About 60% of the organizations surveyed noted that AI and ML helped them meet sustainability targets by improving worker safety and security. Another 54% of respondents stated that these technologies aided them in monitoring energy consumption, while 47% of respondents noted that AI and ML enabled predictive analytics for these businesses as well.

Investing in AI and ML

With the wide application of AI and ML in a variety of industries and businesses, it is no surprise that investment in these technologies has also been on the rise in recent years. Mega tech companies such as Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) are among the biggest investors in AI as they try to ensure they are not left behind in the wake of this rapidly transforming sector. However, the report published by Rackspace Technology also illustrated how these technologies are not exclusively invested in by wealthy global multinational companies anymore. Of the organizations surveyed, the annual investment in AI and ML for these companies is as follows: 22% of the businesses invested up to $100,000, 28% invested between $100,000 to $500,000, 27% of the respondents invested $500,000 to $1 million, and 20% invested about $1 million to $5 million in these technologies. The global average annual investment in AI and ML came up to over $1 million between these organizations alone.

Because of this rising investment in AI and ML, IT leaders continue to see great potential in these technologies today. They believe that AI and ML will help improve innovation, reduce business costs, and enhance business performance. Most businesses today have been using these technologies to meet these goals while also attempting to increase their productivity and revenue streams through AI and ML as well. As such, we have compiled a list of some of the cheapest AI stocks to invest in today.

Let’s now take a look at 10 cheap AI stocks to buy in 2023.

Photo by Ruben Sukatendel on Unsplash

Our Methodology

To select the stocks for our list below, we first shortlisted 20 of the best artificial intelligence stocks on the market today by looking at analyst price targets and ratings on them. We then narrowed down the list to 10 stocks by looking at their upside potential based on the average price targets placed on these stocks by Wall Street analysts in comparison with their share prices on March 31. This data was collected from TipRanks. We then ranked these stocks based on their upside potential, from the lowest to the highest number.

Cheap AI Stocks to Buy in 2023

10. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 28

Upside Potential as of March 31: 5.4%

Average Analyst Price Estimate: $8.59

Palantir Technologies Inc. (NYSE:PLTR) is an application software company based in Denver, Colorado. The company builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations.

On March 1, DA Davidson’s Gil Luria initiated coverage of Palantir Technologies Inc. (NYSE:PLTR) shares with a Neutral rating.

The average price target placed on Palantir Technologies Inc. (NYSE:PLTR) shares on Wall Street is $8.59, with a high forecast of $15. Considering the fact that the shares were trading at $8.15 on March 31, this gives the stock an upside potential of 5.4%. In the fourth quarter, Palantir Technologies Inc. (NYSE:PLTR) closed 55 deals of at least $1 million each, while 11 of these deals were worth over $5 million. With the promise of increased profitability in 2023, the stock is trading at a discount, according to analysts.

D E Shaw was the largest shareholder in Palantir Technologies Inc. (NYSE:PLTR) at the end of the fourth quarter, holding 12.6 million shares. In total, 28 funds were long the stock, with a total stake value of $463 million.

Palantir Technologies Inc. (NYSE:PLTR), like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), is a tech stock that is highly popular among hedge funds today.

9. Micron (NASDAQ:MU)

Number of Hedge Fund Holders: 74

Upside Potential as of March 31: 8.75%

Average Analyst Price Estimate: $68.61

Micron (NASDAQ:MU) is an information technology company making high-performance memory storage hardware. This hardware powers AI solutions, making the company a vital part of the AI sector.

Mehdi Hosseini at Susquehanna holds a Positive rating on Micron (NASDAQ:MU) shares as of March 29, alongside a price target of $90.

Micron is currently the third-largest supplier of Dynamic Random Access Memory (DRAM), which is essential for data centers and PCs. The shares are trading at a P/E ratio of 10.6 as of March 29, making them 23% cheaper than their five-year average. Analysts on Wall Street have placed an average price target of $68.61 on Micron (NASDAQ:MU) shares, with a high forecast of $100.

Our hedge fund data for the fourth quarter shows 74 funds long Micron (NASDAQ:MU). Their total stake value was $2.1 billion.

8. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Holders: 65

Upside Potential as of March 31: 9.25%

Average Analyst Price Estimate: $98.88

Oracle Corporation (NASDAQ:ORCL) is a systems software company based in Austin, Texas. It offers cloud software applications and cloud-based industry solutions, among more.

JPMorgan’s Mark Murphy holds an Overweight rating on Oracle Corporation (NASDAQ:ORCL) shares as of March 24, alongside a price target of $93.

In the third quarter of fiscal 2023, Oracle Corporation (NASDAQ:ORCL) generated revenues of $12.4 billion, which increased by 17.93% year-over-year. This March, the shares were trading at a price-to-sales ratio of 4.77, making the shares 6% cheaper than their five-year average. Wall Street analysts have placed an average price target of $98.88 on Oracle Corporation (NASDAQ:ORCL) shares, with a high forecast of $120.

First Eagle Investment Management was the largest shareholder in Oracle Corporation (NASDAQ:ORCL) at the end of the fourth quarter, holding 20.7 million shares, while 65 hedge funds in total were long the stock. The total stake value in the company was $4.3 billion.

7. Accenture plc (NYSE:ACN)

Number of Hedge Fund Holders: 63

Upside Potential as of March 31: 10.56%

Average Analyst Price Estimate: $312.5

Accenture plc (NYSE:ACN) is an information technology company providing application services such as data management, intelligent automation, and robotic process automation. It is based in Dublin, Ireland.

Tien-tsin Huang, an analyst at JPMorgan, holds an Overweight rating on Accenture plc (NYSE:ACN) shares as of March 24, alongside a price target of $314.

The average price target placed on Accenture plc (NYSE:ACN) shares by Wall Street analysts is $312.5, with a high forecast of $360. In the first quarter of fiscal 2023, the company’s revenue was $15.75 billion, rising 5% year-over-year. Shares of Accenture plc (NYSE:ACN) were trading at a P/E ratio of 22 on March 17, which is 19% cheaper than their five-year average.

Accenture plc (NYSE:ACN) was found among the 13F holdings of 63 hedge funds in the fourth quarter, with a total stake value of $2.8 billion.

ClearBridge Investments, an investment management company, mentioned Accenture plc (NYSE:ACN) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Accenture plc (NYSE:ACN) is a leading global professional services company that helps clients build their digital infrastructure and optimize their operations. We view Accenture as a resilient, high-quality business with consistent earnings and cash flow, a strong balance sheet and very attractive returns on capital. Secular drivers like cloud migration and digital transformation, as well as new, innovative technology deployments like data security, block chain, AI and machine learning position Accenture well for continued growth. It is also currently rolling out a suite of sustainability tools that offers a comprehensive view of a company’s goals, progress and performance across financial and ESG measures, so it is an enabler of ESG for its clients. We exited our position in software-as-a-service company Workday to fund the position, largely on better relative risk/reward, in our view.”

6. SAP SE (NYSE:SAP)

Number of Hedge Fund Holders: 18

Upside Potential as of March 31: 10.6%

Average Analyst Price Estimate: $139.43

SAP SE (NYSE:SAP) is an application software company based in Walldorf, Germany. The company provides enterprise application software products.

An Outperform rating was reiterated on SAP SE (NYSE:SAP) shares on March 21 by Bernstein’s Mark Moerdler. The analyst also placed a price target of $154 on the shares.

SAP SE (NYSE:SAP) has an EV/Sales (TTM) ratio of 4.6, meaning that the stock is trading cheaper than its intrinsic value today. Analysts on Wall Street have an average price target of $139.43 on the shares. Since SAP SE (NYSE:SAP) was trading at $126.07 on March 31, this represents an upside potential of 10.6%.

SAP SE (NYSE:SAP) had 18 hedge funds long its stock in the fourth quarter, of which Windacre Partnership was the largest shareholder, holding 2.1 million shares in the company. The total stake value in the company was $957 million.

Click to continue reading and see the 5 Cheap AI Stocks to Buy in 2023.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Published on November 14, 2025 at by Inan Dogan, PhD

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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