In this article, we will discuss the 11 Best Affordable AI Stocks to Buy Now.
Is artificial intelligence a bubble or not? That’s the million-dollar question evoking mixed reactions on Wall Street. While Nvidia’s Jensen Huang insists we are not in an AI bubble, billionaire investor Jeff Bezos has echoed warning bells about a bubble around revolutionary technology. The human face of the AI Boom, Sam Altman, believes there is a higher risk that some investors will lose substantial sums amid the AI bubble.
The bubble chatter comes amid the AI boom, accounting for about 75% of the S&P 500’s gains since 2022. A point of concern is that the gains have mainly been concentrated in the magnificent seven stocks. According to Goldman Sachs, capital expenditure on AI is poised to hit $390 billion in 2025 and increase by 19% in 2026. On the other hand, Bank of America expects AI expenditure to hit $1.2 trillion in 2030. If the billions of dollars invested in the technology do not yield returns, the fallout for the stocks will be severe.
Likewise, global stocks have come under pressure heading into year-end amid concerns about AI valuations.
“I think if you step back and look at valuations; it’s very hard to argue there’s not a bubble in the U.S. market. You have this phenomenal earnings growth, and there’s little sign of it weakening at this stage, [and at the same time] you’re getting a normalization of interest rates and discount rates,” said Dan Hanbury, who co-manages the Global Strategic Equity strategy at investment manager Ninety One.
Tom Hancock, who runs the GMO U.S. Quality ETF (QLTY), insists investors should take advantage of AI volatility to scoop up shares at a discount.
“We do expect a lot of this kind of volatility going forward. A real, maybe fundamental risk that could come from the volatilities is that the funding dries up if risk aversion rises to a level where investors aren’t willing to support the capex. So where we want to buy are companies where we feel like they can weather that storm. The hyperscalers is particularly where we like to position around the trade,” Hancock said
Amid the AI Bubble and valuation concerns, let’s take a look at the Best Affordable AI Stocks to Buy Now.
Our Methodology
To compile our list of 11 Best Affordable AI Stocks to Buy Now, we scanned ETFs and other online sources for companies with significant exposure to artificial intelligence technology. We focused on stocks with positive upside potential and are popular among elite hedge funds in the third quarter of 2025. We narrowed our list to AI stocks with a forward price-to-earnings multiple of less than 15 as of December 15. Finally, we arranged the stocks in ascending order based on the number of hedge funds holding positions.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Affordable AI Stocks to Buy Now
11. Gorilla Technology Group Inc. (NASDAQ:GRRR)
Forward P/E. 7.05
Stock Upside Potential: 153.25%
Number of Hedge Fund Holders: 9
Gorilla Technology Group Inc. (NASDAQ:GRRR) is one of the best affordable AI stocks to buy now. On December 10, Northland Securities analyst Michael Latimore reaffirmed a Buy rating on Gorilla Technology Group Inc. (NASDAQ:GRRR), with a $35.00 price target.
On December 8, the company completed a strategic investment in infrastructure intelligence company Astrikos.ai. The investment will strengthen the company’s position in India’s AI-ready digital infrastructure market, poised to grow from $1.19 billion in 2025 to more than $3.10 billion in 2030. Astrikos.ai’s technology has already been used across multiple programs, including state-level smart city platforms and the New Indian Parliament complex.
The merger of the two companies’ technologies should lead to smarter, faster, and more resilient AI infrastructure. Astrikos.ai is to provide Gorilla Technology the firepower to push for opportunities in the United Arab Emirates, the USA, and India, leading technology markets.
The investment comes as Gorilla Technology seeks to enhance its video intelligence stack, smart city architecture, and GPU-as-a-Service data center model. Astrikos.ai has made a name for itself in the development of real-time monitoring, prediction, and optimization for critical national systems.
“By joining forces with Astrikos.ai, we combine their deep Indian presence and infrastructure intelligence engine with our proven delivery across the Middle East and Asia. We can deliver AI-ready national infrastructure at scale and move decisively into markets that are expanding at historic speed,” said Jay Chandan, Chairman and CEO of Gorilla.
Gorilla Technology Group Inc. (NASDAQ:GRRR) provides AI-powered solutions for Security Intelligence, Network Intelligence, Business Intelligence, and IoT, focusing on smart city infrastructure, government, manufacturing, and retail through video analytics.
10. Palladyne AI Corp. (NASDAQ:PDYN)
Forward P/E. 4.61
Stock Upside Potential: 84.47%
Number of Hedge Fund Holders: 14
Palladyne AI Corp (NASDAQ:PDYN) is one of the best affordable AI stocks to buy now. Palladyne AI Corp (NASDAQ:PDYN) commands a Moderate Buy consensus rating on Wall Street. Analysts have an average price target of $9.50, implying 84.47% upside potential.
On November 17, the company announced the formation of Palladyne Defense to conduct multiple acquisitions. The company acquired GuideTech LLC, Warnke Precision Machining, and MKR Fabricators for approximately $31 million.
The acquisitions come as the AI software developer seeks to become an integrated defense technology company focused on providing avionics, components, and software, along with design and engineering services.
Additionally, the acquisitions will unite the company’s patented embodied AI with UAV and loitering munitions components. They will also deliver revenue-generating assets while supporting the company’s push to support the Department of War’s modernization priorities.
The acquisitions are expected to bolster Palladyne AI’s revenue base, which could triple to $7.8 million by 2026, up from $7.8 million in 2024. The acquisitions already come with an 18-month backlog of more than $10 million
“This marks a defining inflection point for Palladyne AI. Through the creation of Palladyne Defense, we are transforming from an AI software innovator into a vertically integrated defense technology company,” said Ben Wolff, President and CEO of Palladyne AI.
Palladyne AI Corp. (NASDAQ:PDYN) develops Embodied AI software and hardware for autonomous robots, enabling them to “think, move, and adapt” in real-world settings such as manufacturing, defense, logistics, and aviation. It focuses on allowing the machines to learn and operate independently in dynamic environments without extensive programming.
