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.
8. Blaize Holdings, Inc. (NASDAQ:BZAI)
Share Price: $3.45
Number of Hedge Fund Holders: 10
Blaize Holdings, Inc. (NASDAQ:BZAI) is one of the best AI stocks to buy under $5. On September 17, Blaize Holdings Inc. and Technology Control Company (TCC) announced a strategic partnership aimed at advancing Saudi Arabia’s digital transformation through energy-efficient hybrid AI infrastructure.
The collaboration combines Blaize’s programmable AI platforms with TCC’s regional expertise to co-develop AI solutions for public safety and smart infrastructure, conduct training workshops, and expand distribution across the Gulf region. Blaize’s sovereign-capable AI platform has already been deployed in Asia through partners like Starshine Computing Power Technology, with CEO Dinakar Munagala highlighting its potential to power smarter and safer industries.
TCC CEO Dr. Bandar Al-Haqbani emphasized the company’s commitment to fostering technological leadership in the Kingdom. Known for its work in cybersecurity, identity management, and cloud infrastructure, TCC brings critical capabilities to the partnership. Blaize, headquartered in California with global teams in San Jose, Cary, India, the UK, and UAE, continues to grow its AI presence through recent collaborations with BroadSat Technologies, Turbo Federal, and KAIST.
Blaize Holdings, Inc. (NASDAQ:BZAI) delivers AI-enabled edge computing solutions through its programmable processors and platforms used across industries like enterprise, defense, and automotive. Its offerings include the GSP AI accelerator, Blaize AI Studio, a no-code environment for model deployment, and a range of hardware products such as compute cards, chips, and systems, all designed to simplify and scale AI applications like computer vision and video analytics.
7. Agora, Inc. (NASDAQ:API)
Share Price: $3.83
Number of Hedge Fund Holders: 15
Agora, Inc. (NASDAQ:API) is one of the best AI stocks to buy under $5. On September 10, the company announced plans to unveil advanced AR and AI video capabilities in partnership with Banuba. The new video capabilities are tailored for broadcasters and media platforms seeking immersive experiences.
The AR and AI capabilities will enable creators and broadcasters to present themselves in their best light and express themselves in new ways. Agora expects the latest tools to become part of a seamless, high-quality, and real-time video experience.
Agora and Banuba expect the new video capabilities to enable media companies to deliver engaging, expressive, and interactive video experiences in real-time.
“Video today is about more than entertainment. It’s a canvas for creativity and connection,” said Tony Zhao, CEO and Co-founder of Agora. “By integrating Banuba’s AR innovations into our real-time video stack, we’re giving developers and media brands the ability to deliver live experiences that are more exciting and engaging.”
Agora, Inc. (NASDAQ:API) provides a Real-Time Engagement Platform that integrates conversational AI, video, voice, and chat into applications, empowering developers with APIs to build interactive experiences for IoT and other devices. Agora Software focuses on conversational AI interfaces to make applications more user-friendly through natural language.
6. 8×8, Inc. (NASDAQ:EGHT)
Share Price: $2.04
Number of Hedge Fund Holders: 18
8×8, Inc. (NASDAQ:EGHT) is one of the best AI stocks to buy under $5. On September 11, the company announced a strategic partnership with ULAP Networks. The partnership paves the way for the company to expand its customer experience platform into regulated markets.
As part of the collaboration, 8X8 is to integrate its global platform with ULAP Network’s cloud infrastructure and connectivity services in 113 countries. The integration should help address connectivity challenges that organizations face while operating in different regulatory environments.
8X8 has echoed the collaboration, reiterating that it is part of its several global initiatives planned for the year as it continues to expand its footprint.
“Global operations need more than just platforms – they need dependable connectivity that ensures every call, message, or interaction reaches its destination quickly and securely,” said Sam Wilson, Chief Executive Officer at 8×8. “By partnering with ULAP, we are ensuring that our customers don’t have to choose between global reach and local reliability.”
8×8, Inc. (NASDAQ:EGHT) integrates artificial intelligence into its unified platform for customer experience (CX) and unified communications (UC). It utilizes AI to enable personalized customer journeys, enhance operational excellence, provide valuable customer insights, and facilitate seamless team collaboration within its Contact Center.
5. Wolfspeed, Inc. (NYSE:WOLF)
Share Price: $2.72
Number of Hedge Fund Holders: 19
Wolfspeed, Inc. (NYSE:WOLF) is one of the best AI stocks to buy under $5. On September 10, the company announced the commercial release of its 200mm silicon carbide SiC material product to select customers.
The 200mm wafer diameter is a significant milestone in the company’s push to transition the industry from silicon to silicon carbide technology. The new wafers feature improved parametric specifications at 350µm thickness with enhanced doping and thickness uniformity. The enhancements are designed to enable higher MOSFET yields and accelerate time to market.
The launch of the 200mm silicon carbide material positions the company to capitalize on the growing use of SiC in automotive, renewable energy, and industrial applications due to its superior efficiency and performance.
“By delivering quality at scale, Wolfspeed is enabling power electronics manufacturers to meet growing demand for higher-performing, more efficient silicon carbide solutions.” said Dr. Cengiz Balkas, Chief Business Officer.
Wolfspeed, Inc. (NYSE:WOLF) enables the Artificial Intelligence (AI) industry by manufacturing silicon carbide (SiC) semiconductors that power and cool the massive data centers and servers that run AI applications. Its high-performance SiC chips are used in the power supply units (PSUs) of AI servers, offering superior energy efficiency, higher voltage, and temperature tolerance.
4. Wipro Limited (NYSE:WIT)
Share Price: $2.88
Number of Hedge Fund Holders: 19
Wipro Limited (NYSE:WIT) is one of the best AI stocks to buy under $5. On September 15, the company expanded its strategic partnership with CrowdStrike to launch Wipro CyberShield. The AI-powered, unified managed security service is designed to simplify and strengthen enterprise security solutions.
CyberShield MDR is designed to deliver industry-leading capabilities, providing enhanced visibility and AI-driven automation. It will also enable greater efficiency suited for organizations facing an overwhelming volume of alerts from various security tools.
Powered by CrowdStrike Falcon Next Gen SIEM, the Wipro AI-powered security solution is designed to address all the challenges associated with fragmented security solutions. By combining the Falcon Platform and AI-powered automation, it will supercharge threat detection and response across any network.
“Wipro’s CyberShield platform, powered by CrowdStrike’s AI-native product suites and strengthened by our security ecosystem will help enterprises contain threats swiftly and ensure continuity of digital operations,” said Tony Buffomante, Senior Vice President & Global Head – Cybersecurity & Risk Services, Wipro Limited.
Wipro Limited (NYSE:WIT) applies Artificial Intelligence (AI) and Machine Learning (ML) to develop custom solutions and platforms for various industries, focusing on driving business outcomes through intelligent automation. Its AI efforts include providing financial services solutions, offering AI-powered cybersecurity services, and partnering to build customized AI solutions for clients leveraging platforms.
3. Telus International (NYSE:TIXT)
Share Price: $4.51
Number of Hedge Fund Holders: 20
Telus International (NYSE:TIXT) is one of the best AI stocks to buy under $5. On September 4, Scotiabank raised the stock’s price target to $4.50 from $3.50. It also reiterated a ‘Sector Perform’ rating as the stock is up by about 11% year to date.
The price target hike comes on the heels of TELUS announcing plans to acquire all outstanding shares of TELUS Digital that it does not own for $4.50. The merger paves the way for closer operational and integration between the two units, enhancing artificial intelligence and software-as-a-service transformation across the telecommunications, healthcare, and consumer goods sectors.
Scotiabank has described the merger deal as the best possible outcome for shareholders, given the current macroeconomic environment.
“The transaction is fully reflective of our belief that closer operational proximity between TELUS and TELUS Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business, including telecommunications, TELUS Health and TELUS Agriculture & Consumer Goods, driving positive outcomes for the customers we serve on a global basis,” said Darren Entwistle, President and CEO of TELUS.
Telus International (NYSE:TIXT) provides AI-driven digital solutions globally, specializing in computer vision, data annotation, and search relevance to support enterprise applications. Its Fuel iX platform helps organizations manage and scale generative AI, while its services span cloud, automation, and customer experience across industries like fintech, healthcare, e-commerce, and media.
2. Alight, Inc. (NYSE:ALIT)
Share Price: $3.39
Number of Hedge Fund Holders: 30
Alight Inc. (NYSE:ALIT) is one of the best AI stocks to buy under $5. On September 4, at Citi’s 2025 Global Technology, Media, and Telecommunications Conference, the company expressed optimism about future growth and strategic partnerships.
The optimism stems from the company’s transition to focus on employee benefits services following the divestment of its payroll and professional services businesses. Amid the transition, the company is targeting 4% to 6% growth while leveraging strategic partnerships with prominent companies such as Goldman Sachs.
While the Alight Work Life Platform currently serves 35 million participants, the company is also eyeing further expansion through partnerships, including those with Microsoft and IBM. Alight also remains focused on enhancing the integration of artificial intelligence in its software offerings as it seeks to improve employee experience and internal processes. The integration is part of an effort that aims to strengthen revenue retention rates to 98% from the current 93.5%.
Alight Inc. (NYSE:ALIT) is a human capital technology company that provides cloud-based services for large organizations to administer employee benefits, payroll, and HR. Through its Alight Worklife platform, Alight utilizes data and AI to support employees with their health, wealth, and well-being benefits, providing personalized guidance and insights to both employers and employees.
1. Clarivate PLC (NYSE: CLVT)
Share Price: $4.09
Number of Hedge Fund Holders: 33
Clarivate PLC (NYSE:CLVT) is one of the best AI stocks to buy under $5. On September 11, at the Goldman Sachs Communicopia + Technology Conference 2025, the company highlighted its transition towards subscription models and AI integration.
The company reiterated its renewed focus on artificial intelligence and GenAI integration in products and other AI-native solutions. The continued focus is part of an effort that seeks to ensure 90% of subscription-based revenue, an increase from the current 88%.
Part of the plan to enhance subscription revenue entails phasing out transactional sales in A&G and Life Sciences by 2026. The company also plans to reorganize its sales teams and launch AI-enabled products, such as Web of Science Research Intelligence.
“We are on track for the plan. We are basically doing changes in A&G and in life science. In A&G, we are phasing out the print books and transactional e-books by June 2026. We are on track to complete it. We are also phasing out one-time digital collection sales. At the same time, we have introduced two new products, which are sold on a subscription basis,” said CEO Matti Shem.
Clarivate PLC (NYSE:CLVT) provides purpose-built AI agents to automate and accelerate complex, multi-step tasks across its intelligence solutions. These agents are integrated into products like the Web of Science platform to help researchers conduct literature reviews, identify collaborators, and analyze research performance.
While we acknowledge the potential of Clarivate PLC (NYSE:CLVT) as an investment, 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 CLVT and that has 100x upside potential, check out our report about this cheapest AI stock.
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