5 Under-the-Radar AI Stocks to Buy in 2026

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1. Lantronix, Inc. (NASDAQ:LTRX)

Number of Hedge Fund Holders: 24

On June 8, Canaccord initiated coverage of Lantronix, Inc. (NASDAQ:LTRX) with a Buy rating and a $10.50 price target, citing the company’s position as a provider of Edge AI and Internet of Things solutions across several rapidly growing markets. The firm highlighted Lantronix’s expertise in systems-on-module, edge AI development kits, routers, modems, engineering services, and video processing technologies. According to Canaccord, the company’s diversified product portfolio and exposure to military drones, smart cities, industrial automation, and enterprise networking create multiple avenues for future growth.

Previously, on May 20, Safe Pro announced progress in its collaboration with Lantronix, Inc. (NASDAQ:LTRX) to integrate AI-powered threat detection capabilities into Lantronix’s System-on-Module platform for robotic edge processing applications. The partnership is focused on developing embeddable chipsets capable of enabling real-time video and sensor-data analysis for drones and autonomous systems without relying on cloud connectivity. The initiative expands the addressable market for both companies by targeting defense, security, and commercial autonomy applications where rapid on-device decision-making is increasingly critical.

Lantronix, Inc. (NASDAQ:LTRX) is a provider of secure Edge AI and Industrial Internet of Things solutions that help organizations connect, manage, and monitor mission-critical equipment. Founded in 1989 and headquartered in Irvine, California, the company delivers hardware, software, and SaaS platforms serving industries including defense, enterprise IT, industrial automation, transportation, and smart-city infrastructure.

While we acknowledge the potential of LTRX as an under-the-radar AI stock, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LTRX and that has 100x upside potential, check out our report about this cheapest AI stock.

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