7 Hidden AI Stocks Under $10 to Buy

Earlier, on December 29, Paul Christopher of Wells Fargo joined ‘The Exchange’ on CNBC to discuss his 2026 investing playbook, including his approach to the AI trade. Christopher argued that diversification is a critical strategy heading into 2026. While he acknowledged that the current trend in capital expenditure on AI and equipment will likely remain a reliable growth driver, he cautioned against relying solely on the MAG7 stocks, which can become overextended. Instead, he suggested playing the AI trend through subsidiary routes, specifically mentioning the industrials and utilities sectors. These sectors offer exposure to data centers at lower P/E ratios compared to potentially overpriced tech stocks. Additionally, emerging markets, specifically South Korea and Taiwan, are identified as strategic areas for diversification because they produce much of the tech used in the AI space.

Beyond insurance companies that recently made the AI and data center opportunity a central thesis in their earnings report, Christopher highlighted banks as a strong play. Christopher also anticipates that 2026 will be a year of broadening growth across multiple sectors, where market performance is fueled fundamentally by corporate earnings rather than just upward price momentum.

That being said, we’re here with a list of the 7 hidden AI stocks under $10 to buy.

Our Methodology

We sifted through financial media reports to compile a list of the top hidden AI stocks with AI-related operations and opportunities. We then selected 7 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 Q3 2025.

Note: All data was sourced on February 5. 

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

7 Hidden AI Stocks Under $10 to Buy

7. Himax Technologies Inc. (NASDAQ:HIMX)

Number of Hedge Fund Holders: 12

Himax Technologies Inc. (NASDAQ:HIMX) is one of the hidden AI stocks under $10 to buy. On February 4, Morgan Stanley downgraded Himax from Overweight to Equal Weight while maintaining an $8 price target. This decision was announced amid multiple challenges for display driver integrated circuit vendors.

Morgan Stanley anticipates that softened demand in the computer, smartphone, and automotive sectors, combined with gross margin pressure and a deficiency of new growth drivers, will hinder performance. Furthermore, the firm noted that rising memory costs are expected to create additional headwinds, contributing to continued downside across these primary market segments.

In other news, on January 7, Himax Technologies Inc. (NASDAQ:HIMX) and Vuzix Corp. introduced a lightweight, prescription-ready optical component reference design for AR glasses at CES 2026. This collaboration integrates Himax’s ultra-compact HX7319FL color sequential Front-lit LCoS microdisplay with Vuzix’s high-efficiency waveguide technology to create a power-efficient, scalable solution for OEMs and eyewear makers. By providing a production-ready platform that balances performance and form factor, the companies aim to accelerate the commercialization of all-day wearable AR glasses.

Himax Technologies Inc. (NASDAQ:HIMX) is a fabless semiconductor company that provides display imaging processing technologies in China, Taiwan, Korea, Japan, the US, and internationally. The company operates in two segments: Driver IC and Non-Driver Products.