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.
Pixabay/Public Domain
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 PLC (NASDAQ:RZLV)
Stock Price as of May 12: $2.03
Number of Hedge Fund Holders: 5
Rezolve AI PLC (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 PLC (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’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.”
11. Serve Robotics Inc. (NASDAQ:SERV)
Stock Price as of May 12: $7.46
Number of Hedge Fund Holders: 10
Serve Robotics Inc. (NASDAQ:SERV) develops and operates artificial intelligence-powered, low-emission sidewalk delivery robots. It has already partnered with Uber Eats and 7-Eleven to make delivery of food and other items sustainable and economical. In its first quarter of 2025, Serve Robots built and deployed 250 new third-generation robots and remains on course to deploy 2,000 robots by year end.
Serve Robotics Inc. (NASDAQ:SERV) is already projecting revenues of between $60 and $80 million once the 2,000-robot fleet reaches target utilization next year. Additionally, it expanded its partnerships to over 1,500 merchants in Q1, further strengthening its revenue base. Consequently, it delivered impressive quarterly results as revenues increased 150% to $440 thousand.
Serve Robotics Inc. (NASDAQ:SERV) also hit a new milestone on formalizing efforts to monetize its data and software platform. The company has already inked significant deals with a top-tier European automaker and a middle-mile autonomous trucking company. It has also set out to tap into the robotics and drone delivery markets that are growing at an impressive rate and expected to be worth $450 billion by 2030.
While Serve Robotics Inc. (NASDAQ:SERV) is not yet profitable, it remains well-positioned to generate its first profit as the cost of developing artificial intelligence-powered robots drops. Serve Robotics Inc. holds a Moderate Buy rating, backed by two analysts, with a 12-month price target of $17.00. Forecasts range from $11.00 to $23.00, suggesting a 159.15% potential upside from its current $6.56.
10. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Stock Price as of May 12: $3.16
Number of Hedge Fund Holders: 13
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a technology company that offers artificial intelligence-powered decision intelligence solutions. It also helps organizations operationalize AI by analyzing complex data and providing actionable insights in national security, supply chain management, and digital identity. Likewise, it is one of the best AI stocks to buy, with solid financial results that underscore underlying growth.
BigBear.ai Holdings, Inc. (NYSE:BBAI) delivered solid first-quarter results with a 5% revenue growth of $34.8 million. In addition, its net loss shrank by more than half to $62 million compared to a net loss of $127.8 million delivered the same quarter last year. The better-than-expected results come from BigBear.ai Holdings solutions, resonating well with the sectors for which they were built.
For starters, BigBear.ai Holdings, Inc. (NYSE:BBAI) has inked a strategic partnership with Hardy Dynamics to integrate AI and machine learning into a drone swarm for the US Army. The army-funded project signals strong interest in the company’s ConductorOS platform, which enables secure AI-powered coordination among unmanned aerial systems. Therefore, it places the company at the forefront of AI integrations in military operations, which is expected to unlock new growth opportunities. However, on May 2, Cantor Fitzgerald cut BigBear.ai Holdings, Inc.’s (NYSE:BBAI) price target from $6.00 to $5.00 but kept an Overweight rating, citing macroeconomic concerns.
9. Bit Digital, Inc. (NASDAQ:BTBT)
Stock Price as of May 8: $2.08
Number of Hedge Fund Holders: 14
Bit Digital, Inc. (NASDAQ:BTBT) designs, develops, and operates high-performance computing (HPC) data centers that offer hosting and colocation services, and cloud-based HPC graphics processing units for artificial intelligence and machine learning developers. While the company is best known for its bitcoin mining operations, it increasingly diversifies into high-performance computing and artificial intelligence.
Consequently, Bit Digital, Inc. (NASDAQ:BTBT) has secured a Tier 3 data center site in Canada. The site supports the company’s 5MW colocation contract with artificial intelligence infrastructure firm Cerebras Systems. The $40 million project aligns with the company’s push to accelerate AI infrastructure deployment.
The new site in Quebec builds on a similar acquisition early in the year, whereby Bit Digital, Inc. (NASDAQ:BTBT) acquired a new data center to host its AI infrastructure. The company plans to have 32MW of high-performance computing data centers and 288MW across all its operations by the end of the year. Bit Digital is increasingly expanding its footprint into high-performance computing and data centers in pursuit of stable and potentially higher revenue streams than crypto mining. In April, H.C. Wainwright reaffirmed a Buy rating and set a $7.00 price target for Bit Digital (NASDAQ: BTBT).
8. Domo, Inc. (NASDAQ:DOMO)
Stock Price as of May 12: $8.19
Number of Hedge Fund Holders: 18
Domo, Inc. (NASDAQ:DOMO) is a technology company that operates a cloud-based modern AI and data products platform. Its platform digitally connects and provides access to real-time data and insights. The company has already unveiled Agent Catalyst, seeing opportunities in agentic AI development. The toolkit is designed to be a game changer in providing a structured framework for building and deploying AI agents, unlocking new growth opportunities.
Additionally, Domo, Inc. (NASDAQ:DOMO) has inked a strategic partnership with Humana Capital Vue to enhance HR data integration. HCVue is to leverage Domo’s data products AI platform to equip HR professionals with quick, actionable insights and integrated reporting tools. The speed, reliability, and cost-effectiveness with which Domo solutions unify data across organizations is expected to unlock real-time context and understanding.
Similarly, Domo, Inc. (NASDAQ:DOMO) delivered solid fourth-quarter and fiscal 2025 results that affirmed its focus on laying the foundation for durable and repeatable growth. Full-year revenue totaled $317 million, as subscription revenue totaled $286 million. Meanwhile, Morgan Stanley maintained an Equal Weight on the stock but lowered its price target to $8 from $9.
7. SoundHound AI, Inc. (NASDAQ:SOUN)
Stock Price as of May 12: $8.98
Number of Hedge Fund Holders: 21
SoundHound AI, Inc. (NASDAQ:SOUN) is a software application company that develops voice artificial intelligence (AI) solutions to enable high-quality conversational experiences across the automotive, TV, and IoT sectors. It is one of the best AI stocks to buy as it continues strengthening its AI-powered solutions line. Consequently, the company has achieved an 84.6% revenue growth over the past 12 months, attracting a Buy rating from DA Davidson with a $10 price target.
SoundHound AI, Inc. (NASDAQ:SOUN) remains well-positioned to sustain the outstanding growth given the size of the conversational AI market, which could grow to more than $50 billion in annual revenue by 2030. In pursuit of value in the market, the company has already launched voice-enabled AI agents. It has also introduced Amelia 7.0, designed to enhance business operations with voice-enabled artificial intelligence agents.
Additionally, SoundHound AI, Inc. (NASDAQ:SOUN) is pursuing growth opportunities in China. It has already inked a strategic partnership with Chinese tech giant Tencent. Consequently, working with Tencent’s Cloud and Smart Industries is essential to bring conversational AI capabilities to automotive solutions. The partnership should help validate SoundHound’s technology and unlock new revenue opportunities.
6. Fastly Inc. (NYSE:FSLY)
Stock Price as of May 12: $7.68
Number of Hedge Fund Holders: 27
Fastly Inc. (NYSE:FSLY) is a software application company that operates an edge cloud platform for processing, serving, and securing applications. Its solutions enable developers to build, secure, and deliver digital experiences at the edge of the internet. It also offers network services to speed up and optimize the delivery of web and application traffic. While the stock has dropped by about 36% year to date, analysts at Piper Sandler have reiterated a Neutral rating and raised the price target to $7 from $6.
The price hike comes on the heels of the leader in global edge cloud platforms delivering impressive first quarter fiscal 2025 results and raising its full year guidance due to strong demand for AI-powered solutions. Revenue in the quarter was up 8% year over year to $144.5 million as product package deals more than doubled and new logo packages grew by 80%.
Fastly Inc.’s (NYSE:FSLY) net loss shrank to $39.1 million as its positive free cash flow more than quadrupled to $8.2 million compared to $2.2 million of negative cash flow as of the same quarter last year. The better-than-expected results can be attributed to Fastly’s revamped go-to-market strategy.
5. TTEC Holdings Inc. (NASDAQ:TTEC)
Stock Price as of May 12: $5.30
Number of Hedge Fund Holders: 28
TTEC Holdings Inc. (NASDAQ:TTEC) is an information technology services company that designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels. Its TTEC Digital segment provides CX technologies for contact center as a service, customer relationship management, and artificial intelligence (AI). The company has expanded its footprint by opening a new customer experience center in India.
The expansion is part of TTEC Holdings Inc.’s (NASDAQ:TTEC) strategy to drive growth while offering brands AI-powered digital customer experience solutions. In addition, it hopes to improve customer experiences and the journey through technology and human experience. TTEC’s Mohali Customer Experience Center builds upon the significant growth the company has enjoyed in India over the past 24 years.
Additionally, TTEC Holdings Inc. (NASDAQ:TTEC) introduced new digital sales targeting opportunities in the healthcare sector while offering scalable and cost-effective solutions. It has introduced a cutting-edge model that allows healthcare organizations to leverage a unified digital sales solution. Healthcare facilities should be able to streamline their digital sales operations while delivering tailored, brand-specific interactions. Joseph Fafi of Canaccord Genuity reiterated a Hold rating on the stock but cut the price target to $3.5 from $4.5.
4. Riot Platforms, Inc. (NASDAQ:RIOT)
Stock Price as of May 12: $8.48
Number of Hedge Fund Holders: 37
Riot Platforms, Inc. (NASDAQ:RIOT) is a Bitcoin mining and digital infrastructure company that operates large-scale Bitcoin mining facilities. However, the company has made a strategic move into artificial intelligence as it seeks to put itself at the nexus of blockchain technology and AI innovation. The expansion is part of the company’s bid to diversify its income sources away from the volatile cryptocurrency landscape. Riot Platforms (NASDAQ: RIOT) is a top AI stock due to rising energy demand from AI firms. With power access and data centers, it is well-positioned to benefit from tech giants’ growing needs.
Riot Platforms, Inc. (NASDAQ:RIOT) reported Q1 2025 results on May 1, showing strong revenue growth but a large net loss as it shifts focus to AI and high-performance computing (HPC) data centers. Revenue rose 104% to $161.4 million, but the company posted a $296.4 million loss ($0.90 per share), a sharp drop from its $109.4 million profit last quarter. Riot is balancing its Bitcoin mining business while expanding into AI-powered data centers.
Early in the year, the Riot Platforms, Inc. (NASDAQ:RIOT) confirmed it was exploring the possibility of directing up to 600MW of its remaining power capacity at the Texas facility to artificial intelligence high-performance computing. It has already opened discussion with various AI/HPC counterparts as it looks to capitalize on the massive AI opportunity. Riot Platforms has a Strong Buy rating from 11 analysts, with an average price target of $15.91, ranging from $11.00 to $22.00, suggesting an 88.51% upside from its current $8.44.
3. Applied Digital Corporation (NASDAQ:APLD)
Stock Price as of May 12: $5.39
Number of Hedge Fund Holders: 41
Applied Digital Corporation (NASDAQ:APLD) is an information technology services company that designs, develops, and operates digital infrastructure solutions and cloud services for high-performance computing (HPC) and artificial intelligence industries. It offers infrastructure services to crypto mining customers and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. On April 23, Needham reiterated a Buy rating on the stock with a $10 price target buoyed by the company’s prospects in the burgeoning cloud computing industry.
Applied Digital Corporation’s (NASDAQ:APLD) long-term prospects hinge on increased spending in AI Hardware and other processing capabilities. Consequently, the stocks sentiments have received a significant boost on confirmation that tech giants led by Microsoft and Meta plan to continue spending on AI hardware and processing capabilities.
Applied Digital Corporation’s (NASDAQ:APLD) delivered impressive third-quarter fiscal 2025 results, characterized by a 22% year-over-year revenue increase. The company’s cloud service business posted a 220% revenue increase to $17.8 million. The robust revenue growth affirms that positioning in high-performance computing infrastructure will surely generate long-term value. The company is already working on the Ellendale campus in addition to a 100MW HPC facility expected to strengthen its competitive edge in the hyperscaler market.
2. Alight Inc. (NYSE:ALIT)
Stock Price as of May 12: $5.57
Number of Hedge Fund Holders: 42
Alight Inc. (NYSE:ALIT) is a technology services company that provides Alight Worklife, an intuitive, cloud-based employee engagement platform. The company helps large organizations manage employee benefits and improve employee well-being. It is one of the best AI stocks to buy as it makes important advancements across artificial intelligence and delivery initiatives. DA Davidson maintains a Strong Buy on the stock with a $10 price target.
Alight Inc. (NYSE:ALIT) utilizes artificial intelligence and machine learning to improve decision-making in its solutions and enhance employee experience. Likewise, its next-generation AI engine, Alight LumenAI, has enhanced the Worklife platform by improving employee experience with the help of AI and analytics. The AI-powered solution has strengthened Alight’s push for value in the global human capital management market, projected to grow from $34.12 billion in 2025 to $64.97 billion by 2032.
While Alight Inc. (NYSE:ALIT) posted a 2% decline in revenue to $548 million in its first quarter of 2025, it was much better than the $541 million that analysts expected. In addition, its adjusted EBITDA improved to $118 million compared to $116 million last quarter as net loss shrank to $17 million from a net loss of $121 million delivered the previous quarter.
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.
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