6. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 23
Lucid Group, Inc. (NASDAQ:LCID) is one of the best small cap stocks to buy for the long term. Lucid Group, Inc. (NASDAQ:LCID) received several rating updates following the release of its financial results for fiscal Q1. Benchmark downgraded Lucid Group, Inc. (NASDAQ:LCID) to Hold from Buy on May 7, without setting a price target on the stock. The firm told investors that factors such as mixed demand signals, weaker-than-expected deliveries, and the suspension of 2026 guidance following a CEO transition materially clouded visibility. Benchmark further stated that it believes the risk/reward “has skewed”.
Lucid Group, Inc. (NASDAQ:LCID) also received a rating update from Citi on May 15. The firm cut the price target on the stock to $14 from $17 and maintained a Buy rating on the shares. It told investors in a research note that Lucid Group, Inc. (NASDAQ:LCID) reported a fiscal Q1 miss and pulled its 2026 outlook. However, Citi believes that the company’s medium-term plans are intact, and it sees inflection points into 2027 with production starting at the new Saudi production plant and a decline in capital spending.
Lucid Group, Inc. (NASDAQ:LCID) is a manufacturer of electric vehicles and is involved in the designing, development, and building of energy storage systems for electric vehicles and supplies automakers with the battery pack system needed to power hybrid, plug-in, and electric vehicles.
While we acknowledge the potential of LCID to grow, 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 LCID and that has 100x upside potential, check out our report about the cheapest AI stock.
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