13 Best AI Stocks to Buy Under $10

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1. Lumen Technologies, Inc. (NYSE:LUMN)

Stock Price as of May 8: $4.16

Number of Hedge Fund Holders: 44

Lumen Technologies, Inc. (NYSE:LUMN) is a networking company that provides integrated products and services. It offers dark fiber and conduit, edge cloud, Internet Protocol (IP), voice over IP, and managed security solutions.  The company is also engaged in the sale of fiber internet infrastructure and services to support artificial intelligence data centers.

On May 2, Citi cut Lumen Technologies Inc.’s (NYSE: LUMN) price target from $6.50 to $6.00 but kept a Buy rating. The adjustment followed strong financial results, including a 10% year-over-year rise in strategic growth product revenue. Lumen Technologies exceeded Q1 2025 expectations, reporting EPS of -$0.13 (better than -$0.26 forecast) and revenue of $3.18 billion (vs $3.12 billion expected). Despite a 3.3% revenue decline from 1Q 2024, Lumen is strengthening its market position with strategic partnerships like Google Cloud and Connectivity Fabric. It aims for EBITDA growth by 2026, reaffirming 2025 guidance of $3.2 billion –$3.4 billion, while targeting $1 billion in expense reductions by 2027.

Lumen Technologies, Inc. (NYSE:LUMN) is positioning itself to capitalize on the growing demand for connectivity fabric amid the unprecedented increase in volume of data generated from AI. It has already partnered strategically with IBM to develop enterprise-grade AI solutions. By bringing strong, real-time AI inferencing closer to the data generation location, Lumen and IBM want to assist businesses in overcoming cost, latency, and security obstacles as they expand AI adoption and improve consumer experiences.

While we acknowledge the potential of Lumen Technologies, Inc. (NYSE:LUMN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LUMN but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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