In this article, we discuss 13 Best AI Stocks to Buy Under $10.
Fears of an artificial intelligence bubble bursting appear overblown. That’s the sentiment echoed on Wall Street in the aftermath of tech giants delivering better-than-expected quarterly results and reiterating investments in AI infrastructure. Increased investments in AI Infrastructure and other solutions have once again affirmed sentiments in the burgeoning segment that was the catalyst behind US markets powering to record levels last year.
At the beginning of the year, investors became worried that the AI surge might collapse in the aftermath of the Chinese company DeepSeek creating a sophisticated large language model that needed less energy and funding. The news from DeepSeek caused a significant change in market sentiment and led to a decline in AI stocks that had experienced substantial increases for most of the year.
Fast forward, tech giants signaling they will continue to invest in AI and cloud infrastructure is a tailwind that continues to reiterate sentiments around AI stocks. Companies ramping up investments to address capacity constraints in their cloud unit, as others ramp investments in AI-powered servers and data center assets, are a positive for the overall sector.
According to AMD CEO Lisa Su, ordering patterns around everything AI remains strong, signaling people and companies are not making short-term decisions. Initially, there were concerns that companies pursuing opportunities around AI had spent far too much and too quickly to build out infrastructure and would need to go slow. Consequently, tech giants whose valuations had skyrocketed to record highs pulled back significantly as investors remained wary of their long-term outlook amid an uncertain macroeconomic environment that is crumbling amid a ferocious trade war and export controls.
Continued investments in AI should be expected as companies look to strengthen their product and services portfolio while also strengthening their competitive edge. There have been concerns that heightened regulations and authorities placing guardrails could derail innovations around artificial intelligence. However, that appears not to be the case.
According to Wedbush Securities global head of technology research Dan Ives, “Innovations around AI are growing at 100 miles per hour while regulatory pressure is only growing at 35 miles an hour”.
According to Ives no amount of regulation is going to change the heightened amount of spending around AI. “The use cases are exploding and no amount of regulation is going to change it” said Ives in an interview with CNBC. Ives added:
“In terms of use cases, US commercial businesses are exploding. Right now we have 85 use cases, a year ago we had 10. I think what we are starting to see is more and more that it is across verticals healthcare financials government and retail among others.”
The fact that executives from some of the biggest tech giants have denied they are cutting back spending on servers and data makes the case for why investors should pay attention to some of the AI stocks trading at highly discounted valuations.
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Our Methodology
We sifted through Finviz and financial media reports to compile a list of top AI stocks trading below $10. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order based on the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best AI Stocks to Buy Under $10
13. Rezolve AI Limited (NASDAQ:RZLV)
Stock Price as of May 12: $2.03
Number of Hedge Fund Holders: 5
Rezolve AI Limited (NASDAQ:RZLV) is a technology company that provides generative AI solutions for the retail and e-commerce sectors. Its AI-powered solutions empower retailers, brands, and manufacturers to create dynamic connections with consumers, transcending barriers of location and device. The company’s AI solutions live in more than 50 enterprise customers, affirming market traction and are expected to create a solid revenue base.
The company’s AI-driven solutions continue to deliver measurable commercial improvements for its retail partners. Consequently, Rezolve AI Limited (NASDAQ:RZLV) has already achieved more than $50 billion in gross merchandise value processed through its platform year to date, averaging about $3.3 billion per week. It has also processed over 13.5 million transactions, averaging 900,000 per week.
Likewise, the leader in AI-powered commerce and digital engagement solutions has completed the acquisition of GroupBy Inc. With the acquisition, it gains access to a valuable commerce search and product discovery platform, driving over 30 billion in annual sales. The acquisition will strengthen Rezolve AI Limited’s (NASDAQ:RZLV) capabilities in AI-driven commerce site search and digital engagement. Amid the solid underlying fundamentals, HC Wainwright maintains a strong buy rating on the stock with a $4 price target.
12. eGain Corporation (NASDAQ:EGAN)
Stock Price as of May 12: $5.05
Number of Hedge Fund Holders: 6
eGain Corporation (NASDAQ:EGAN) is a software application company that provides customer engagement solutions through cloud-based software-as-a-service (SaaS) subscriptions. It generates revenues from the SaaS subscriptions. The stock has pulled back significantly due to the broader stock market selloff amid the tariff and trade war concerns.
Nevertheless, the selloff has come at the back of solid underlying fundamentals. For starters, eGain has secured significant enterprise wins, affirming strong demand for AI-powered solutions. First, it has signed a mega deal with an interactive entertainment company with 800 million international player accounts. It has also signed a deal with a global money transfer company with 150 million customers across 200 countries to provide customer engagement solutions. Additionally, it has inked a deal with a prominent US airline.
The wave of enterprise deals comes on, eGain Corporation (NASDAQ:EGAN) strengthening its prospects with the launch of eGain AI Agent for Contact Center. The solution is poised to unlock new growth opportunities around customer service as it integrates with platforms like Amazon Connect, Genesys, and Salesforce, and it is tailored to address the challenge of variable agent performance in contact centers.
eGain Corporation (NASDAQ:EGAN) posted a 17% year-over-year increase in annual recurring revenue in its second quarter of fiscal 2025. However, the stock’s outlook took a hit on the company, lowering its full-year revenue guidance to $88.5 million from $92.4 million.
“We won several new enterprise logos in the second quarter,” said Ashu Roy, eGain’s CEO. “As a result, our annual recurring revenue from AI Knowledge Hub customers grew by 17% year over year and 5% sequentially. Customer service automation is a strategic focus for AI investment in Global 1000. As a result, we are seeing a growing number of seven-figure ARR deals in our sales pipeline.”
