12 Best AI Stocks Under $50 to Buy Right Now

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.

10. Bigbear.ai Holdings Inc. (NYSE:BBAI)

Number of Hedge Fund Holders: 27

Bigbear.ai Holdings Inc. (NYSE:BBAI) is one of the best AI stocks under $50 to buy right now. On May 5, BigBear.ai reported its financial results for Q1 2026, highlighted by an expansion in gross margins and a robust increase in its project backlog. Quarterly revenue reached $34.4 million, a slight 1% decrease year-over-year, as lower volumes in Army programs were nearly offset by contributions from the late-2025 acquisition of Ask Sage.

Crucially, gross margins jumped to 34.0% from 21.3% in the prior year, driven by the higher-margin GenAI platforms integrated through the Ask Sage deal. The company’s total backlog grew 14% from the previous quarter to $281.9 million. This surge was primarily fueled by a $53 million sole-source prime classified award in the national security sector, alongside other wins totaling ~$75 million.

CEO Kevin McAleenan noted that these victories validate the company’s focus on national security and trade markets, keeping BigBear.ai on track to meet its full-year revenue targets. Bigbear.ai Holdings Inc. (NYSE:BBAI) affirmed its full-year 2026 revenue guidance of $135 to $165 million while also launching a new retail shareholder voting program to increase accessibility for its upcoming annual meeting.

Bigbear.ai Holdings Inc. (NYSE:BBAI) is a provider of AI solutions for defense, national security, and critical infrastructure, using machine learning at scale through its end-to-end data analytics platform.

9. C3.ai Inc. (NYSE:AI)

Number of Hedge Fund Holders: 28

C3.ai Inc. (NYSE:AI) is one of the best AI stocks under $50 to buy right now. On April 8, C3.ai announced the general availability of C3 Code, a revolutionary development platform that uses autonomous agentic AI to turn NL requirements into production-grade enterprise applications. By describing a business problem in plain English, users (including business analysts and data scientists) can prompt the system to design, test, and deploy governed applications in hours rather than months.

CEO Stephen Ehikian characterized the launch as a shift from assisted development to a fully autonomous system where AI independently builds Enterprise AI. The platform distinguishes itself through its “C3 AI Type System” and a library of 40+ industry-specific packages for sectors like defense, healthcare, and manufacturing. These pre-built assets allow AI agents to generate full-stack applications, including data models, APIs, and ML pipelines, without requiring extensive engineering teams.

Furthermore, C3 Code is LLM-agnostic, providing enterprises with the flexibility to switch between different large language models while maintaining full portability of their data and applications. In a benchmark evaluation conducted using Anthropic’s Claude, C3 Code outperformed competitors such as OpenAI’s Codex and Palantir, earning an overall score of 9.2 out of 10.

C3.ai Inc. (NYSE:AI) is an enterprise AI software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.

8. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)

Number of Hedge Fund Holders: 29

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of the best AI stocks under $50 to buy right now. On May 6, Recursion reported significant progress across its AI-driven clinical pipeline for Q1 2026, highlighted by positive early data for its RBM39 degrader, REC-1245. In the Phase 1/2 DAHLIA study, the molecule showed a well-tolerated safety profile with no dose-limiting toxicities and predictable, dose-dependent pharmacokinetics.

Additionally, the company dosed the first patient in its Phase 1 study of REC-4539, a reversible LSD1 inhibitor designed to avoid the platelet toxicity common in similar treatments. These milestones underscore the company’s ability to use its “full stack” OS to rapidly translate biological insights into differentiated clinical candidates.

The company’s advanced programs also reached critical inflection points, particularly REC-4881 for familial adenomatous polyposis/FAP. Following positive Phase 2 data that showed a 53% reduction in polyp burden, Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) initiated engagement with the FDA to define a potential registrational pathway, with a formal update expected in H2 2026. The company continues to advance large-scale “maps of biology” with Roche and Genentech, using over 1 trillion internally manufactured neuronal cells to identify novel targets in oncology and immunology.

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is a Utah-based clinical-stage biotech company that specializes in the decoding of biology and chemistry. The company develops its solutions by integrating technological advancements in AI and ML to accelerate drug discovery.

7. DoubleVerify Holdings Inc. (NYSE:DV)

Number of Hedge Fund Holders: 32

DoubleVerify Holdings Inc. (NYSE:DV) is one of the best AI stocks under $50 to buy right now. On April 16, DoubleVerify announced the launch of DV’s AI SlopStopper for Social, an expansion of its AI Verification suite designed to help advertisers filter out low-quality, AI-generated content. As generative AI triggers a massive surge in automated media production, this tool provides brands with the precision and control needed to safeguard their reputations.

By distinguishing credible content from mass-produced slop, the offering ensures that ad spend is directed toward high-quality environments across social and video-centric platforms. The technology uses a proprietary blend of AI-driven analysis and human oversight to identify and categorize low-value material at scale. These insights are integrated into DV’s pre-bid brand suitability controls, allowing advertisers to proactively avoid undesirable placements before an ad is served.

This release builds upon the DV AI Verification framework introduced in late 2025, which was established to help brands navigate the complexities of AI agent interactions and non-human content across the open web. Currently, DoubleVerify Holdings Inc.’s (NYSE:DV) AI SlopStopper pre-screen avoidance is live on YouTube, with plans to roll out support for additional social and video platforms later in 2026.

DoubleVerify Holdings Inc. (NYSE:DV) provides media effectiveness platforms that use Scibids AI to optimize digital advertising internationally. It offers a suite of advanced tools, including DV Authentic Ad, DV Authentic Attention, DV Pinnacle, Custom Contextual solutions, and the DV Publisher suite.

6. SentinelOne Inc. (NYSE:S)

Number of Hedge Fund Holders: 37

SentinelOne Inc. (NYSE:S) is one of the best AI stocks under $50 to buy right now. On April 30, SentinelOne announced Wayfinder Frontier AI Services, a proactive security offering designed to identify and disrupt real-world exploitation chains. Developed to counter the increasing speed at which adversaries use advanced AI to weaponize vulnerabilities, the service shifts the focus from theoretical risks to what is actually exploitable in a customer’s specific environment.

By pairing Anthropic’s Claude Opus 4.7 model with SentinelOne’s elite offensive and defensive experts, the service provides continuous, intelligence-led discovery and remediation that goes beyond traditional vulnerability scanning. The core of the service is exploitability-grounded prioritization, which evaluates findings against a live environmental context, such as architectural layers and existing runtime protections.

Rather than providing a simple list of vulnerabilities, Wayfinder Frontier AI Services maps how exposures connect into end-to-end attack paths. It then recommends targeted mitigations (ranging from identity controls and configuration hardening to Singularity Platform enforcement) specifically designed to break the chain at the most critical points for an adversary. This new offering extends the existing Wayfinder portfolio and is built on a multi-model foundation that integrates proprietary telemetry with intelligence from SentinelLABS and Google Threat Intelligence.

SentinelOne Inc. (NYSE:S) provides AI-powered cybersecurity solutions designed to protect endpoints, cloud environments, and enterprise networks.

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