In this article, we discuss the 5 cheap AI stocks to buy in 2024. To read the detailed analysis of the artificial intelligence industry, go directly to the 11 Cheap AI Stocks to Buy in 2024.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Average Analyst Price Target Upside: 19.00%
Average Analyst Price Target: $208.23
Number of Hedge Fund Holders: 293
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational tech company that offers various AI-integrated solutions and products like its AI Services, an AI chatbot called Q, etc.
In the fourth quarter, hedge fund sentiment was positive toward Amazon.com, Inc. (NASDAQ:AMZN) as the number of hedge funds with investments in the stock went up to 293, up from 286 in the previous quarter. Fisher Asset Management increased its stake in the stock by 3% to 42.24 million shares worth $6.42 billion.
On February 1, Amazon.com, Inc. (NASDAQ:AMZN) announced its fourth-quarter earnings result with an EPS of $1.00 and the revenue of $170 billion grew by 13.9% year-over-year (YoY), surpassing the estimates by $3.74 billion.
Polen Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”
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4. Palo Alto Networks, Inc. (NASDAQ:PANW)
Average Analyst Price Target Upside: 20.09%
Average Analyst Price Target: $338.77
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is a California-based company that provides products and solutions for cybersecurity, and several of them are AI-integrated, like its Cortex suite.
On February 21, Jefferies lowered the price target on Palo Alto Networks, Inc. (NASDAQ:PANW)’s stock to $365 from $450 and kept a Buy rating on the shares.
Palo Alto Networks, Inc. (NASDAQ:PANW) was covered by 4 Wall Street analysts over the past three months and maintained a Buy rating on the stock. The average price target of $338.77 represented an upside of 20.09% as of the February 23 market close.
According to Insider Monkey’s database, 77 hedge funds held a stake in Palo Alto Networks, Inc. (NASDAQ:PANW)’s stock in the fourth quarter. With 464,942 company shares worth $137.102 million, Alex Sacerdote’s Whale Rock Capital Management was the most significant investor in the company.
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3. AeroVironment, Inc. (NASDAQ:AVAV)
Average Analyst Price Target Upside: 23.60%
Average Analyst Price Target: $152.33
Number of Hedge Fund Holders: 15
AeroVironment, Inc. (NASDAQ:AVAV) is a California-based company that designs unmanned aerial vehicles, and its robotic systems are powered by AI. AeroVironment, Inc. (NASDAQ:AVAV) takes the third spot on our list of cheap AI stocks to buy in 2024.
On February 8, AeroVironment, Inc. (NASDAQ:AVAV) announced that its Tomahawk Robotics secured a contract from the Department of Defense worth $2.67 million. Under the contract, the company would provide delivery of prototype Tomahawk Grip Tab Active controllers and supporting test kits.
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2. Symbotic Inc. (NASDAQ:SYM)
Average Analyst Price Target Upside: 32.28%
Average Analyst Price Target: $53.44
Number of Hedge Fund Holders: 24
Symbotic Inc. (NASDAQ:SYM) is a Massachusetts-based company that designs AI-powered robotic warehouse automation systems.
On February 7, DA Davidson analyst Matt Summerville upgraded Symbotic Inc. (NASDAQ:SYM)’s stock to Buy from Neutral and maintained the price target of $50.
On February 5, Symbotic Inc. (NASDAQ:SYM) announced its Q1 GAAP EPS of -$0.02, which beat the estimates by $0.03. The revenue of $368.45 million grew by 78.6% YoY.
In the fourth quarter, hedge fund sentiment was positive toward Symbotic Inc. (NASDAQ:SYM) in Q4 as the number of hedge funds with a stake in the stock went up to 24 at a combined stake value of $122.930 million, up from 12 funds at a total stake value of $28.603 million in the previous quarter.
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1. Rekor Systems, Inc. (NASDAQ:REKR)
Average Analyst Price Target Upside: 95.65%
Average Analyst Price Target: $4.50
Number of Hedge Fund Holders: 12
Rekor Systems, Inc. (NASDAQ:REKR), through the use of AI-driven decisions, is engaged in the development of real-time roadway intelligence solutions.
On January 22, Rekor Systems, Inc. (NASDAQ:REKR) reported that its Traffic Services division secured a five-year traffic counting contract valued at $1 million from the Gwinnett County Georgia, Department of Transportation.
On January 30, it was announced that Rekor Systems, Inc. (NASDAQ:REKR)’s Urban Mobility division’s Rekor Discover platform was picked by the New Mexico Department of Transportation to carry out Federal Highway Administration 13 bin vehicle class, count, and speed data reporting. The company is set to receive monthly payments from the department as each new system becomes online.
Over the past three months, 2 Wall Street analysts covered Rekor Systems, Inc. (NASDAQ:REKR), and both kept a Buy rating on the stock. As of the February 23 market close, the average price target of $4.50 represented an upside of 95.65%.
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