In this article, we will discuss the 12 Best AI Stocks Under $50 to Buy Right Now.
On May 5, Joe Lonsdale, 8VC Founding Partner & Palantir Co-Founder, appeared on CNBC’s ‘Squawk Box’ to discuss reports that the US government is considering reviewing AI tech before its public release, under the Commerce Department’s Center for AI Standards & Innovation. Talking about whether this signals the creation of an FDA for AI, Lonsdale expressed deep concern, claiming that the FDA has historically cost millions of lives by creating a massive bureaucracy that makes developing life-saving therapies 10x to 100x more expensive. He fears that a similar government framework for AI would stifle investment and innovation. However, he acknowledged a necessary trade-off to prevent dangerous technology, such as models capable of advanced hacking, from falling into the hands of adversaries.
Lonsdale argued that any national regulation on powerful AI models must be as narrow and small as possible to avoid the cronyism and regulatory capture that he believes defines the pharmaceutical industry. He asserted that large tech companies like Google and Microsoft publicly call for regulation because they have the resources to control and influence complicated rules, effectively creating barriers that prevent smaller biotech or AI companies from competing. He emphasized that he is wary of both government overreach and corporate power, fearing that the two will work together ‘to screw all of us’ through politicization.
This debate is especially relevant for investors looking beyond mega-cap AI names. On that note, lets dive into AI stocks trading under $50.
Our Methodology
We used stock screeners to identify AI stocks with a share price below $50, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.
Note: All data was sourced on May 5.
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).
12 Best AI Stocks Under $50 to Buy Right Now
12. SoundHound AI Inc. (NASDAQ:SOUN)
Number of Hedge Fund Holders: 22
SoundHound AI Inc. (NASDAQ:SOUN) is one of the best AI stocks under $50 to buy right now. On May 5, SoundHound AI launched OASYS (Orchestrated Agent System), a category-defining platform that introduces a self-learning ecosystem where AI autonomously builds and manages other AI agents. Moving beyond the traditional build-and-deploy model that requires constant manual maintenance, OASYS can create functioning, multilingual agents in minutes by ingesting existing documentation and visualizing logic flows.
This fundamental shift allows businesses to deploy fleets of orchestrated agents that transition from static tools to evolving systems that improve themselves based on real-world usage and performance data. The platform is designed to manage the entire lifecycle of an AI agent, using an “Agentic+ Orchestration Framework” to coordinate multiple agents within a single interaction. These agents can resolve complex queries, execute transactions, and manage workflows like insurance claims or retail orders while maintaining enterprise-grade security guardrails.
A key feature is the system’s ability to proactively engineer its own updates; it identifies performance gaps and presents autonomous refinements to human experts, effectively eliminating the maintenance tax usually associated with scaling enterprise AI. OASYS provides a persistent, cross-channel experience, allowing businesses to build an agent once and deploy it across diverse touchpoints, including phones, web chats, in-vehicle infotainment, and in-store kiosks.
SoundHound AI Inc. (NASDAQ:SOUN) is a voice intelligence company offering voice AI solutions to businesses.
11. Cerence Inc. (NASDAQ:CRNC)
Number of Hedge Fund Holders: 23
Cerence Inc. (NASDAQ:CRNC) is one of the best AI stocks under $50 to buy right now. On April 8, Cerence expanded its partnership with BYD, the world’s leading new-energy vehicle manufacturer, to deploy next-gen, LLM-powered in-car AI assistants. Using the Cerence xUI agentic platform, BYD will introduce these intelligent experiences across its global vehicle lineup on an accelerated timeline, beginning this spring with the ATTO 2 DM-i.
The collaboration aims to combine automotive-grade reliability with rapid market entry, allowing BYD to scale advanced conversational features across various regions and languages. The new AI assistant is designed to function as a conversational companion, moving away from static commands toward fluid, multi-step interactions. Powered by CaLLM (Cerence Inc.’s (NASDAQ:CRNC) family of automotive-optimized LLMs), the system orchestrates complex tasks and provides drivers with trusted, real-time information regarding travel, music, sports, and news.
This deep integration ensures that the assistant is not only responsive but also remains brand-aligned and intuitive for passengers. By supporting a wide array of languages, the Cerence xUI platform enables BYD to deliver localized and culturally relevant user experiences while maintaining a unified global identity.
Cerence Inc. (NASDAQ:CRNC) provides AI-powered assistants for the mobility/transportation market in the US, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific.
