Artificial technology was catapulted into the spotlight this year thanks to the massive success of ChatGPT, an AI-powered chatbot created by OpenAI. As the public got to experience the incredible capabilities of artificial intelligence first-hand, AI has quickly become one of the leading trends in investing.
AI penny stocks are interesting to explore if you want to get exposure to the growth of AI but would prefer to avoid companies that already have significant valuations.
In this article, we’ll feature 10 artificial intelligence stocks under $10 to show you the companies that are taking advantage of AI tech but still have relatively low valuations.
The best AI penny stocks under $10 to buy in 2024:
- Canaan - Chip manufacturer focusing on AI and crypto mining
- SoundHound - Major player invoice AI
- Lantern Pharma - A company with an AI-powered drug development platform
- CXApp-Enhancing the workplace experience with AI
- BigBear.ai - A company that uses AI for decision intelligence solutions
- Rekor Systems - Using AI to analyze mobility data
- Gaxos.ai -Redefining the human-AI relationship
- Himax Technologies - Chip manufacturer with AI-enabled product line
- Evolv Technologies - AI-powered security screening technology
- Predictive Oncology - Using AI tech in oncology
The 10 best AI penny stocks under $10
In the sections that follow, we are going to examine the best artificial intelligence stocks under $10. Please note that investing in low market cap companies in a nascent field such as AI is inherently risky and can lead to big gains or losses.
1. Canaan- Chip manufacturer focusing on AI and crypto mining
The second on our list of the best AI penny stocks is Canaan, a company that started by producing Bitcoin mining hardware powered by ASICs (application-specific integrated circuits). In recent years, however, Canaan has also been active in the AI sector, producing AI chips and developing and optimizing algorithms. Currently, Canaan offers three AI chips in its Kendryte AI series: K210, K230 and K510.
The K210 chip is an edge computing chip that supports visual and semantic recognition with a wide range of possible applications. The K230 is a versatile chip that is designed for AI-powered IoT (internet of things) use cases such as security cameras and smart door locks. However, it can also be utilized in manufacturing, drones, and a host of other applications. The K510 is an edge inference chip that Canaan has designed for use in applications such as HD video conferencing, aerial photography, and robotics.
Canaan is listed on the NASDAQ stock exchange, where it trades under the ticker symbol CAN. It currently has a market capitalization of $433 million.
If you want to buy Canaan stock, check out our guide on how to invest in CAN.
2. SoundHound- Major player in voice AI
SoundHound is a company specializing in voice AI technology. SoundHound’s technology allows businesses to create customized voice assistants that make interacting with their products easier for customers. SoundHound’s technology is used for voice control in cars, smart devices, and even ordering systems in restaurants. The company’s extensive list of customers includes major companies such as Mercedes-Benz, Hyundai, KIA, Qualcomm, Snap Inc., and many others.
The company also offers a mobile app that allows users to identify songs by recording audio or even singing a melody. The app has reached more than 300 million downloads in total.
SoundHound’s solutions support 25 major languages, but the company is working on expanding the list of supported languages further.
SoundHound is traded on the NASDAQ stock exchange and has the ticker SOUN. At the time of writing, it has a market cap valuation of $447 million.
3. Lantern Pharma- A company with an AI-powered drug development platform
Lantern Pharma is a pharmaceutical company that focuses on oncology. The company’s drug development platform extensively leverages artificial intelligence and machine learning technologies.
The platform developed by Lantern Pharma is called RADR (Response Algorithm for Drug Positioning & Rescue). The RADR platform is designed to predict how patients will likely respond to drugs developed by Lantern Pharma, as well as other drugs that the company has analyzed. The RADR platform boasts more than 25 billion data points.
Currently, Lantern Pharma is recruiting for two clinical trials that are in Phase 2. The first is for a drug called LP-100, which is designed for patients with a specific form of prostate cancer. The second is for LP-300, which is designed for non-smokers suffering from non-small cell lung cancer.
Lantern trades on NASDAQ under the ticker LTRN and has a market capitalization of just under $55 million.
4. CXApp - Enhancingthe workplace experience with AI
CXApp is a comprehensive mobile platform designed to enhance the workplace experience, especially in hybrid work environments. This application aims to streamline various workplace functions into a single platform, making it easier for employees to navigate and engage with their work environment, whether they are on-site or working remotely.
Last year, the company announced an AI-based augmented reality solution aimed at solving the "Return to Office" (RTO) problem. ""The CXAI SaaS platform is anchored on the intersection of customer experience (CX) and artificial intelligence (AI), providing digital transformation for the physical workplace for enhanced experiences across people, places, and things," the CEO of CXApp, Khurram Sheikh, commented on the solution.
The AR model allows employees to collaborate more effectively and bridges the gap between those working in the office and those working at home. The CXAI stock saw a major uptrend this year, with the stock gaining over 83% since the start of 2024.
If you want to buy CXApp stock, check out our guide on how to invest in CXAI.
5. BigBear.ai- A company that uses AI for decision intelligence solutions
Our list of the best AI stocks under $10 is completed by BigBear.ai, a company that leverages AI technologies to create decision intelligence solutions. BigBear.ai’s solutions are used across the supply chain and logistics management, cybersecurity, and autonomous systems.
A big part of BigBear.ai’s business is its contracts with United States government agencies across the intelligence and defense sectors.
In May 2023, BigBear.ai entered into an agreement with defense contractor L3Harris to provide its forecasting computer vision technology for maritime defense programs, including for ASVs (autonomous surface vessels).
BigBear.ai is listed on the NASDAQ stock exchange, where it trades under the ticker BBAI. It currently has a market cap of $495 million.
6. Rekor Systems - Using AI to analyze mobility data
The first on our list of AI stocks to watch is Rekor, a technology company that leverages AI to collect and analyze mobility data. The company offers both software platforms and hardware systems. The solutions provided by Rekor Systems are used by a variety of clients, including government agencies, law enforcement, engineering companies, and others.
Here’s the lineup of Rekor Systems’ software platforms:
- Rekor Discover - AI-driven analytics for roadways, automatically analyzes live traffic video streams
- Rekor Command - AI-powered detection of events such as accidents
- Rekor Dcout - AI-driven license plate and vehicle recognition software
Meanwhile, Rekor Systems’ suite of hardware products includes the following:
- Rekor Edge Flex - Portable data collection system that can capture up to six lanes of roadway data
- Rekor Edge Max - Fixed data collection system suitable for long-term traffic studies
- Rekor Edge Pro - License plate and vehicle recognition solution
Rekor Systems is listed on the NASDAQ stock exchange and currently has a market capitalization of $190 million.
7. Gaxos.ai - Redefining the human-AI relationship
Gaxos.AI is a company that has recently expanded its focus to include artificial intelligence solutions in both the gaming and health sectors. Originally building its legacy in the gaming industry, Gaxos.AI has launched a new initiative to revolutionize the world of artificial intelligence with applications designed to enhance mental and physical health, combat loneliness, and promote longevity. This strategic shift marks a significant diversification in the company's portfolio, aiming to redefine the human-AI relationship.
The company is evolving with a dual-division structure: Gaxos Gaming and Gaxos Health. Gaxos Gaming continues to innovate in the gaming sector, while Gaxos Health is poised to make a significant impact in the health tech market.
The strategy seems to have caught the interest of investors– GXAI has broken out of a multi-month slump at the turn of the year and shows very respectable +62% YTD gains at the time of writing.
8. Himax Technologies- Chip manufacturer with AI-enabled product line
Himax is a Taiwan-based semiconductor manufacturer that has a number of products related to artificial intelligence. The company’s WiseEye platform is an ASIC platform designed for applications with ultra-low power requirements, especially when it comes to AI-enabled IoT. According to Himax, WiseEye products can be used for motion sensing, face detection, speech recognition, and other applications.
Himax Technologies trades on the NASDAQ stock exchange under the ticker symbol HIMX. At the time of writing, the company commands a market capitalization of $935 million.
If you want to buy Himax Technologies stock, check out our guide on how to invest in HIMX.
9. Evolv Technologies- AI-powered security screening technology
Evolv Technologies is a company that is developing security screening technologies with the help of AI. Their Evolv Express solution is designed to detect weapons with a high degree of accuracy while keeping the process friendly to the people who are being screened. The technology is used for security screening at venues hosting events such as stadiums and arenas, but also by hospitals, schools, and public spaces.
In August 2023, Evolv announced the 7.0 version of Evolv Express, which is a software upgrade containing an enhanced detection algorithm.
Evolv trades on NASDAQ under the EVLV ticker and has a market cap of $695 million at the time of writing.
10. Predictive Oncology- Using AI tech in oncology
Predictive Oncology is a company that specializes in oncology-related drug discovery, drug development, and clinical testing.
Predictive Oncology has developed a predictive engine called PEDAL using a biobank containing more than 150,000 tumor samples. The PEDAL predictive engine is designed to predict drug responses, improving the chances of successful drug development. The company also offers complex 3D models simulating human tissue, as well as formulation services that help companies speed up the development of formulations.
The company is listed on the NASDAQ stock exchange under the ticker POAI, and has a relatively modest $12million market capitalization at the time of writing.
The bottom line
When choosing the best AI stocks to buy under $10, we focused on companies that are already utilizing AI tech in real-world scenarios instead of featuring companies that are mostly based on future promises and speculation. Hopefully, our list of the AI penny stocks to watch has given you a helpful overview of which companies are taking advantage of AI to deliver cutting-edge solutions to their customers.
Like most tech stocks, the AI stocks under $10 that we featured in this article predominantly trade on the NASDAQ stock exchange. Before making any investment decisions, make sure to thoroughly conduct your own research. Never invest more than you are willing to lose.
If you’re interested in finding more companies that stand to benefit from the development of AI technology, make sure to check out our list of the best Chat GPT stocks.
For a general overview of the most prominent players in the artificial intelligence sector, check our list of the best AI stocks to buy in 2024.
FAQs
Are there any AI penny stocks?
Yes, there are quite a few companies with relatively small valuations that utilize AI technology. Examples include AI analytics company Rekor Systems, AI-focused chip manufacturer Canaan, and speech speech recognition firm SoundHound.
What is the best AI penny stock to buy?
The best AI penny stock to buy depends on what kind of application of AI technology you think has the most potential. Companies like Predictive Oncology and Lantern Pharma utilize AI in the pharmaceutical industry, while companies such as BigBear.ai and Rekor utilize AI to analyze complex collections of data.
