On May 8, Dan Ives of Wedbush Securities joined CNBC’s ‘Squawk on the Street’ to discuss his bullish outlook on the AI sector and tech. Ives used the metaphor of technology speeding down the highway at 100 mph in a Ferrari, while regulation lags in the slow lane at 35 mph. He emphasized that, given this disparity, much of the oversight will be self-regulatory, as the use cases for AI are expanding rapidly. He predicted continued consolidation in the sector and stated that regulatory efforts would not halt this trend. The discussion also touched on international trade, particularly regarding the UK, China, India, and Vietnam. Ives described any progress with the UK as a small but positive step, but stressed that the real focus for tech companies remains on China. He explained that while the UK relationship is notable, it does not have the same impact as China, and tech companies are closely monitoring developments in Asia because of their significance to larger deals. He also predicts that major tech players would acquire smaller or emerging private companies and argued that the ongoing AI revolution, unstoppable even in the face of tariffs, will drive companies to position themselves advantageously for the future, with consolidation playing a key role.
Ives acknowledged the current regulatory uncertainty and unexpected moves from major tech partners but maintained his bullish stance on big tech overall due to accelerating use cases and spending in the sector. Ives also discussed the enterprise adoption of agentic AI, or AI agents, and when their impact on business efficiency and margins would become evident. Ives emphasized that the AI revolution is spreading across software, cybersecurity, and the internet, and that tariffs will not impede this fourth industrial revolution. In fact, Ives thinks that tariffs might even accelerate AI adoption by increasing price pressures and driving companies to seek efficiencies, highlighting that this earnings season was pivotal, with accelerated spending on AI. He observed that AI-related budgets have surged from 1% to 2% a year ago to about 15% now, and argued that neither regulatory hearings nor tariffs can slow this momentum. He likened the current AI revolution to a decisive last-second play in basketball, as it’s delivering unexpected and transformative results for the tech sector.
That being said, we’re here with a list of the 13 best artificial intelligence stocks under $50 to buy now.
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
Our Methodology
We first sifted through ETFs and financial media reports to compile a list of the top AI stocks under $50. 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 of the number of hedge funds that have stakes in them, as of Q4 2024.
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 Artificial Intelligence Stocks Under $50 to Buy Now
13. POET Technologies Inc. (NASDAQ:POET)
Share Price as of May 12: $4.48
Number of Hedge Fund Holders: 4
POET Technologies Inc. (NASDAQ:POET) offers photonic integrated packaging solutions based on the POET Optical Interposer. This platform allows the integration of electronic and photonic devices onto a single chip. It’s also capitalizing on the demand for photonic solutions within the AI and data center markets, which the CEO also highlighted, anticipating a multi-year growth cycle.
POET is rapidly building the infrastructure and securing the partnerships necessary to meet the demand for its photonic solutions in AI data centers. Q4 2024 revenue for the company declined year-over-year and totaled $29.16K due to the ongoing investments and partnerships for the AI and data center markets. However, even under only the existing collaborations with industry leaders like LuxshareTech, Foxconn, and Mitsubishi Electric, POET projects revenue acceleration in H2 2025.
In April, POET Technologies Inc. (NASDAQ:POET) partnered with Lessengers, which provides optical solutions based in South Korea, to offer a differentiated 800G DR8 transceiver. This transceiver will include POET’s transmit and receive optical engines and Lessenger’s Direct Optical Wiring technology for a cost-effective solution for AI and data center applications. Lessengers expects to have transceiver samples ready for review in H2 2025.
12. Serve Robotics Inc. (NASDAQ:SERV)
Share Price as of May 12: $7.46
Number of Hedge Fund Holders: 10
Serve Robotics Inc. (NASDAQ:SERV) designs, develops, and operates low-emission robots that serve people in public spaces for food delivery activity in the US. These delivery robots are autonomous and AI-powered for increased sustainability and efficiency.
In the company’s Q1 2025 earnings call, the CEO highlighted that the technology stack developed for Serve’s autonomous robot fleet represents ‘exciting new business opportunities.’ This fleet included AI for navigation, APIs for robot interaction, fleet management software, safety protocols, and remote intervention tools.
Q1 saw the primary revenue drivers as fleet revenues at $212K (which now includes delivery and branding) and software services at $229K (related to the existing delivery operations). The CEO also announced that Serve will begin recognizing recurring software platform revenues starting in Q2 2025. While this revenue stream is projected to be small initially, the expectation is for it to grow over the coming quarters.
11. Evolv Technologies Holdings Inc. (NASDAQ:EVLV)
Share Price as of May 12: $4.44
Number of Hedge Fund Holders: 19
Evolv Technologies Holdings Inc. (NASDAQ:EVLV) provides AI-based weapons detection for security screening. It has Evolv Express, which is an AI-based concealed weapons detection system for firearms, improvised explosive devices, and tactical knives. It also offers Evolv eXpedite, which is an autonomous AI-based weapons detection system for concealed weapons in bags using X-ray imaging and AI.
In Q3 2024, Evolv Technologies Holdings Inc. (NASDAQ:EVLV) crossed 2 billion screenings and added 465 new subscriptions. It expanded its reach to about 1,100 schools and 400 hospital buildings and gained 3 new professional sports stadium clients and 3 additional Fortune 500 customers. Later in Q4, the company deployed over 6,000 Evolv Express units internationally, which activated 470 new multi-year subscriptions and added ~60 new customers.
The company targets a broad market that represents a ~$20 billion annual market. In April, Evolv announced an extension and expansion of its partnership with the San Francisco Giants for the 2025 season. As part of this, the existing deployment of 20 Evolv Express security systems at Oracle Park (in place since 2021) will be upgraded to Evolv’s latest Gen2 units. This exemplifies the benefits of Evolv’s subscription-based business model, which allows customers to access the newest hardware and software innovations.
10. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Share Price as of May 12: $4.33
Number of Hedge Fund Holders: 21
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is a clinical-stage biotech company that uses AI and ML to develop novel therapeutics. The company’s AI-driven drug discovery platform is called the Recursion Operating System/OS. This platform, now in its 2.0 iteration, uses multimodal biological data, extensive computational power, and active drug design capabilities to improve drug discovery.
As of May, Recursion has made over $450 million in revenue through 4 key collaborations. These partnerships show the effectiveness of the Recursion OS in identifying novel drug targets and developing promising therapies. The company also received its 4th program option from Sanofi, which is a testament to the success and potential of its joint research efforts utilizing the Recursion OS.
The company also emphasizes that the Recursion OS 2.0 enables it to achieve leading indicators of success, such as faster hypothesis validation and the generation of drug candidates with fewer synthesized molecules. The focus on sharpening its R&D portfolio is directly informed by the insights from the Recursion OS 2.0. It allows Recursion to double down on high-potential programs and decisively deprioritize those that do not meet its criteria.
9. Verint Systems Inc. (NASDAQ:VRNT)
Share Price as of May 12: $17.87
Number of Hedge Fund Holders: 24
Verint Systems Inc. (NASDAQ:VRNT) provides customer engagement solutions. It offers Verint Open Platform to help brands enhance customer experience automation across various touchpoints. These are between the organization and customers in the contact center, back office, branch, websites, and mobile apps. It also offers AI-powered bots to deliver AI business outcomes across the enterprise.
In FQ4 2025, the company’s ARR growth reached 5%, which exceeded the guidance of 4% due to the momentum in AI-powered CX automation and the growing adoption of Verint’s AI solutions by customers. ARR growth also accelerated sequentially throughout the year. The company forecasts another year of ARR growth acceleration and raised its FQ4 2026 ARR outlook to $768 million, which would be up 8% year-over-year.
On March 28, Wedbush lowered Verint’s price target to $30 from $38, while keeping an Outperform rating. This adjustment came after the company’s Q4 earnings that missed both the top and bottom lines because of the timing of unbundled SaaS revenue renewals. However, Verint Systems Inc. (NASDAQ:VRNT) continues to capitalize on the current demand pipeline for the CX platform while further embedding AI capabilities into it.
8. C3.ai Inc. (NYSE:AI)
Share Price as of May 12: $23.37
Number of Hedge Fund Holders: 25
C3.ai Inc. (NYSE:AI) is an enterprise AI software company that provides the C3 AI platform. This is an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications. Some of the company’s other offerings include C3 AI CRM Suite, C3 GenAI, C3 AI applications, and C3 AI Supply Network Risk.
On April 3, C3.ai Inc. (NYSE:AI) announced a customer collaboration with Arcfield, which provides government technology and mission support. The collaboration will use C3 GenAI-powered solutions to enhance digital transformation by accelerating the design, development, and operation of production-grade Enterprise AI applications.
The company’s GenAI and Agentic AI solutions address enterprise AI challenges like hallucination and data security. C3 AI has seen strong adoption of its C3 GenAI pilots across various sectors, which include defense, government, and consumer goods, with 20 new pilots in FQ3 2025. However, late on April 14, DA Davidson analyst Gil Luria lowered the price target on C3 AI to $18 from $25, while keeping a Neutral rating due to an overall slowdown in consumer activity and corporate investment.
7. IONQ Inc. (NYSE:IONQ)
Share Price as of May 12: $31.27
Number of Hedge Fund Holders: 28
IONQ Inc. (NYSE:IONQ) develops quantum computers and networks. It offers AI-driven optimization for real-world applications and sells access to quantum computers of various qubit capacities. The company provides access to its quantum computers through cloud platforms like AWS, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, as well as through its cloud service.
IONQ Inc. (NYSE:IONQ) closed its purchase of a majority stake in ID Quantique/IDQ on April 30. Based in Geneva and Seoul, IDQ is a practitioner in quantum networking. This acquisition brings leading quantum networking talent and technology directly into the IonQ family. IonQ’s vision for the quantum internet involves developing all necessary hardware, from intersatellite communications to ground-based fiber networks.
The company also announced the proposed acquisition of Boston-based Lightsynq. Lightsynq developed the first-ever quantum repeater, which extends the range of quantum networks beyond current limitations. Lightsynq brings over 25 patents and patent applications. On May 8, Richard Shannon from Craig-Hallum reiterated a Buy rating on IonQ with a price target of $45.
6. UiPath Inc. (NYSE:PATH)
Share Price as of May 12: $12.50
Number of Hedge Fund Holders: 40
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers robotic process automation solutions. The company’s platform’s embedded AI, ML, and NLP capabilities improve decision-making and information processing. It allows users to design and combine UI automations, API integrations, and AI-based document understanding in a single workflow.
Throughout FY2025, the company delivered AI-powered products/capabilities, such as Agent Builder, Agentic Orchestration, and the AI Trust Layer. The adoption of UiPath’s AI capabilities is driving a shift towards its cloud offerings. Cloud ARR grew by over 50% year-over-year and reached over $975 million by the end of the fiscal year. The company’s Major customers are migrating their automation programs to the cloud to accelerate the adoption of AI products.
The company’s AI product adoption is strong, as 85% of customers with greater than $1 million in ARR are utilizing its AI-powered offerings. For instance, a European security company expanded its use of the UiPath platform and started using AI for automating email routing and document attachments. The security company now projects net annual savings of $30 million by 2030.
On April 15, Mizuho lowered the price target on UiPath to $11 from $12, while maintaining a Neutral rating as part of a Q1 preview for the software sector.
5. Alight Inc. (NYSE:ALIT)
Share Price as of May 12: $5.57
Number of Hedge Fund Holders: 42
Alight Inc. (NYSE:ALIT) provides an intuitive, cloud-based employee engagement platform called Alight Worklife. This platform offers integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, and retiree healthcare. The company also operates AI-led capabilities software.
Alight is using AI and Automation within its integrated platform to enhance client value and efficiency. By Q1 2025, about 80% of its clients were using AI in some capacity. This is exemplified by the launch of the AI-powered self-service Leave Administration reporting platform, which is crucial as Leave has only 10% penetration among top clients. Alight Inc. (NYSE:ALIT) is also developing similar AI reporting for Health and Wealth.
The company’s focus on AI and automation is contributing to its profitability and free cash flow growth. Moreover, its strong renewal rates with major clients like Starbucks and Baxter also reflect confidence in its AI-driven vision. On May 9, Daniel Ives from Wedbush maintained his Buy rating on Alight but lowered the price target from $11 to $9.
4. Applied Digital Corp. (NASDAQ:APLD)
Share Price as of May 12: $5.39
Number of Hedge Fund Holders: 42
Applied Digital Corp. (NASDAQ:APLD) provides digital infrastructure solutions and cloud services for the HPC and AI industries. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. It also offers infrastructure services to crypto mining customers and GPU computing solutions for workloads related to AI, ML, and other HPC tasks.
As of FQ3 2025, Applied Digital operates 286 megawatts of fully contracted data center hosting capacity for currency clients across 2 locations in North Dakota, which are both running at full capacity and making $35.2 million in revenue for the quarter. On April 15, Kevin Dede from H.C. Wainwright maintained a Buy rating on Applied Digital Corp. (NASDAQ:APLD) but lowered the price target from $12 to $7.
The Ellendale campus is expected to be a major growth catalyst for the company. This is Applied Digital’s next-gen data center development in North Dakota, which is backed by significant financing. This includes a potential investment of ~$5 billion from Macquarie Asset Management and a $375 million financing arrangement with Sumitomo Mitsui Bank Corporation. The first 100-megawatt building is expected to generate revenue in late 2025.
3. SoFi Technologies Inc. (NASDAQ:SOFI)
Share Price as of May 12: $13.18
Number of Hedge Fund Holders: 43
SoFi Technologies Inc. (NASDAQ:SOFI) provides various financial services that are personalized through AI and data science. It operates through 3 segments: Lending, Technology Platform, and Financial Services. One of the company’s platforms includes Technisys, which is a cloud-native digital & core banking platform for software licenses and associated services.
In Q1 2025, the company’s technology platform generated $103 million in net revenue, which was a 10% year-over-year increase. While the number of accounts slightly decreased by 6% year-over-year to 158 million, revenue still grew by 10%, with similar growth and potential acceleration expected in Q2. This is attributed to the monetization of existing clients and new deals signed in new client segments, such as a first-of-its-kind reward debit program with Wyndham Hotels and Resorts.
SoFi Technologies Inc. (NASDAQ:SOFI) anticipates that new client wins in the tech platform business will have an impact on revenue in 2026 and beyond. William Blair analyst Andrew Jeffrey kept a bullish stance on the stock, giving it a Buy rating on April 25 due to the company’s strong market position and financial performance, which is evidenced by the 48% year-over-year growth in ARPU.
Patient Capital Management expressed optimism for the company’s future and stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2024 investor letter:
“The top performers in the fourth quarter were once again Financials and Travel names. We’ve been over-indexed to them since the pandemic, which has served us well. We strategically added to certain financial names like SoFi Technologies, Inc. (NASDAQ:SOFI) and Coinbase Global Inc. (COIN) during the year. Both companies rebounded strongly in the fourth quarter.
Sofi Technologies Inc. (SOFI) was a standout in the quarter, climbing 95% and up 156% from the intra-day lows in June. The company benefited from Fed rate cuts and the market’s growing optimism that the economy will avoid a recession. The company continues to grow its customer count while successfully cross selling into their loans and financial service products. In the quarter, we saw the company take on a new revenue stream by originating loans for third parties, creating an attractive balance sheet-light revenue source, helping improve return on equity and margins. Sofi is early in its life cycle, currently being a small player in a very large total addressable market (TAM). With their strong management team, we believe the company will continue to deliver on their guidance of strong growth and expanding margins.”
2. Snap Inc. (NYSE:SNAP)
Share Price as of May 12: $8.25
Number of Hedge Fund Holders: 44
Snap Inc. (NYSE:SNAP) offers Snapchat, which enables people to communicate visually through short videos and images. The application offers various AI-powered lenses, chatbots, and personalized content to improve the user experience. It also provides Snapchat+, which is a subscription service that provides subscribers access to exclusive, experimental, and pre-release features.
In Q1 2025, the company’s ad revenue grew by 9% year-over-year to $1.211 billion. Direct response advertising increased by 14% to make up 75% of the total ad revenue. This growth is attributed to advancements in Snap’s ML capabilities, enhanced use of privacy-safe signals, and optimized ad formats. Now the company’s full-year guidance for other costs of revenue remains at 19% to 20% of revenue.
On April 30, Truist kept a Hold rating on Snap while lowering its price target from $14 to $11. The firm noted that growth in Direct Response advertising and Snapchat+ subscriptions was slightly offset by continued weakness in Brand advertising. Truist also added that changes to Snap’s ad products are attracting more advertisers. However, macroeconomic uncertainty due to tariffs is negatively impacting overall advertising demand.
1. Nebius Group (NASDAQ:NBIS)
Share Price as of May 12: $28.27
Number of Hedge Fund Holders: 66
Nebius Group (NASDAQ:NBIS) builds full-stack infrastructure to service the global AI industry. Its businesses include Nebius, which is an AI-centric cloud platform built for intensive AI workloads. Nebius builds full-stack infrastructure for AI, such as large-scale GPU clusters, cloud platforms, and tools and services for developers.
D.A. Davidson analyst Alex Platt maintained a Buy rating on Nebius Group (NASDAQ:NBIS) with a $30 target price on May 9. In April, the company partnered with DDN, which is an AI and data intelligence company. By integrating DDN Infinia and EXAScaler into Nebius’ AI cloud, the company is expanding the scalability of its platform for AI workloads. With DDN and Nebius working together, enterprises can deploy AI workloads faster at a lower cost.
In Q4 2024, Nebius launched its AI cloud platform and AI Studio (IaaS). The company is also expanding GPU clusters in Europe and the US, and planning a new US data center. It’s investing in its data center infrastructure to support the performance demands of next-gen Blackwell GPUs for its AI cloud services. Nebius’ AI data service, Toloka, grew revenue by 140% in 2024, which added major AI labs as clients.
While we acknowledge the growth potential of Nebius Group (NASDAQ:NBIS), our conviction lies in the belief that AI stocks hold great promise for delivering high 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 NBIS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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