In this article, we discuss the 11 Best AI Stocks to Buy Under $5.
The artificial intelligence boom is minting dozens of new billionaires while generating significant returns for investors. Successful blockbuster funding rounds underscore growing investor demand for AI innovations that are likely to shape the world in the future.
While focus has been on tech giants, owing to their massive investments in semiconductors, data centers, and computing power, AI is creating wealth at a scale that makes tech waves look like warm-ups.
“Going back over 100 years of data, we have never seen wealth created at this size and speed,” said Andrew McAfee, principal researcher at MIT. “It’s unprecedented.”
Analysts at PwC expect AI to add $15.7 trillion to the global economy by 2030, given its integration into various sectors. If these projections are anything to go by, then AI is well-positioned to lead to many winners. However, it does not mean that every AI stock is worth buying.
Likewise, focus is slowly shifting away from tech heavyweights that have been at the forefront of revolutionary technology. Amid valuation concerns, investors eyeing a piece of the pie are slowly turning their attention to AI plays trading at highly discounted valuations.
As we approach the end of the year, cheap artificial intelligence stocks are begging to be bought, as valuations in the equity markets remain above historical norms. Savvy investors are seeking AI winners across various sectors, including robotics, cloud infrastructure, and the $286 billion AI data center chip market.
Our Methodology
To come up with the best AI stocks to buy we used Finviz screener to scan for stocks trading below $5 (as of September 18). We focused on companies working on AI innovation and leveraging the technology to enhance their operations, and that were popular among elite hedge funds in Q2 2025. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Best AI Stocks to Buy Under $5
11. Iveda Solutions Inc. (NASDAQ:IVDA)
Share Price: $1.49
Number of Hedge Fund Holders: 1
Iveda Solutions Inc. (NASDAQ:IVDA) is one of the best AI stocks to buy under $5. On September 11, the company announced the expansion of its international reseller network across North America, Europe, Africa, the Middle East, and Asia. Expansion of the reseller network is part of an effort that seeks to enhance scalable revenue growth.
The expansion comes amid growing demand for the company’s AI training tools IvedaAI, VEMO body cameras, and vumastAR. The company is eliciting strong demand from municipalities modernizing their smart city infrastructure, schools strengthening campus security, and law enforcement agencies.
Consequently, Iveda has moved to capitalize on the growing demand for AI-powered physical security solutions in a market expected to reach $151.5 billion in 2030 from $120.8 billion in 2025
“Global spending on private security services is rapidly increasing, particularly in regions where public safety infrastructure is strained or complemented by private solutions,” said David Ly, Iveda founder and CEO. “We’re working with a partner in Johannesburg, and see an enormous demand for technology that enhances accountability and operational intelligence in this sector. It is exactly the type of market where Iveda delivers immediate, measurable impact.”
Iveda Solutions Inc. (NASDAQ:IVDA) is a provider of cloud-based artificial intelligence (AI) video search and surveillance technologies that protect people, places, and assets worldwide. Its core AI offering, IvedaAI, provides intelligent search capabilities for video and analytics, while its Cerebro IoT platform integrates various smart sensors and devices for data management.
10. Inuvo, Inc. (NYSE:INUV)
Share Price: $3.51
Number of Hedge Fund Holders: 3
Inuvo, Inc. (NYSE:INUV) is one of the best AI stocks to buy under $5. On September 8, Inuvo Inc. showcased its growth strategy at the H.C. Wainwright Global Investment Conference, spotlighting its AI-driven IntentKey platform and two record-breaking quarters.
Despite challenges such as cookie deprecation, the company remains optimistic about its future, aiming for $100 million in revenue to achieve positive cash flow. A Q4 refresh of IntentKey will enhance audience targeting and insights, while Inuvo continues to scale its profitable self-service business and expand its sales team.
Financially, Inuvo holds $2.5 million in cash, carries no debt, and has access to a $10 million credit line. With 14.6 million shares outstanding and 8–9% insider ownership, the company is optimizing operations and automating its platform to boost efficiency. It’s targeting deeper penetration into the $300 billion programmatic ad market, especially among mid-size agencies and major industry players, leveraging seasonal momentum to drive growth.
Inuvo, Inc. (NYSE:INUV) is an AdTech company that uses large language generative AI to identify and target digital audiences across devices and formats. Its flagship platform, IntentKey, enables real-time ad placement and consumer intent recognition for display, video, audio, and native ads. Focused on AI-driven advertising optimization, IntentKey enables precise ad placement for display, video, audio, and native content, serving agencies, brands, and major ad buyers in the U.S. market.
9. Veritone Inc. (NASDAQ:VERI)
Share Price: $4.10
Number of Hedge Fund Holders: 4
Veritone Inc. (NASDAQ:VERI) is one of the best AI stocks to buy under $5. On September 10, the company priced an underwritten public offering of 9.51 million shares at $2.63 per share. The company is eyeing $25 million in gross proceeds from the offering.
It has also granted underwriters an option to purchase an additional 1.43 million shares at the public offering price. Veritone plans to use net proceeds from the offering as working capital and for general corporate purposes. Part of the funds is to go towards servicing the debt and repayment of indebtedness.
The pricing of the public offering comes on the heels of the company amending its Credit and Guaranty Agreement, thereby increasing its liquidity requirement to $15 million, effective September 13. Recent actions are part of an effort to strengthen the financial standing.
Veritone Inc. (NASDAQ:VERI) is an enterprise AI company that develops and provides AI software, applications, and services through its aiWARE platform, which orchestrates various machine learning models to transform data into actionable intelligence.
