Best AI Stocks Under $10 To Watch in 2025

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Artificial intelligence is transforming industries — and investors are looking for low-cost ways to get in early. These eight AI stocks under $10 offer growth potential across sectors like EVs, voice AI, SaaS and real-time data. Here’s what analysts say about each company’s upside.

Best AI Stocks Under $10 in 2025

If you’re ready to invest in AI, consider these eight low-priced stocks recommended by experts:

• Alight Inc. (ALIT)
• Ouster Inc. (OUST)
• PowerFleet Inc. (AIOT)
• Nio Inc. (NIO)
• Lantronix Inc. (LTRX)
• SoundHound AI Inc. (SOUN)
• Phunware Inc. (PHUN)
• VTEX (VTEX)

1. Alight Inc. (ALIT)

• Sector/industry: Technology/Software – application
• Closing price on April 29: $5.28
• Average 12-month price target: $10.12
• Analyst rating: Strong buy
• What it does: Alight provides an AI-based platform companies can use to deliver personalized human resources services and benefits packages to their employees.
• Why it’s a standout: Seventy percent of Fortune 100 companies and 50% of Fortune 500 companies use Alight’s platform.

Alight’s Worklife platform integrates companies’ HR and benefits ecosystems in a way that’s scalable and fully customizable to increase employees’ experience while reducing costs. The platform is powered by Alight LumenAI, which is an AI engine that can do anything from help employees choose the best healthcare option to help companies manage absences and plan and administer retirement benefits. In addition to streamlining processes and tasks, LumenAI’s analytics tools provide companies with valuable insights they can use to improve efficiency and employees’ experiences.

ALIT shares are down 23.25% year to date, but the company beat earnings expectations in two of the last three quarters. Analysts rate the stock a “strong buy.” The average price target is $10.12, representing almost 92% upside, in a range of $8 to $12.

2. Ouster Inc. (OUST)

• Sector/Industry: Technology/Electronic components
• Closing price on April 29: $7.72
• Average 12-month price target: $13.80
• Analyst rating: Strong buy
• What it does: Ouster produces lidar sensors used in autonomous vehicles and robotics.
• Why it’s a standout: Ouster is on the leading edge of an emerging technology.

Lidar is a laser-scanning technology that produces 3D views of whatever it’s scanning, such as the roadway an autonomous vehicle is driving on or a robot’s surroundings — it lets the car or robot “see” what’s around it for safe and accurate navigation. Ouster makes the sensors and AI-based perception software that allows organizations to harness lidar 3D “vision” for many different applications beyond automotive and robotics.

Ouster is currently trading near its 52-week low despite record revenues for Q4 and full-year 2024 and explosive growth in bookings. Not surprisingly, analysts say it’s undervalued. They rate Ouster a “strong buy” with an average price target of $13.80 in a range of $11 to $17.

3. Powerfleet Inc. (AIOT)

• Sector/industry: Technology/Software – infrastructure
• Closing price on April 29: $4.28
• Average 12-month price target: $11.50
• Analyst rating: Strong buy
• What it does: Powerfleet is an artificial-intelligence-of-things company that provides software-as-a-service solutions that help organizations manage their mobile assets.
• Why it’s a standout: The company is a recognized global innovator in its industry.

Powerfleet helps organizations unify their operations with a data-driven SaaS platform. The platform allows them to optimize fuel consumption, vehicle maintenance and performance, and streamline regulatory compliance processes. Data they collect and analyze through the platform helps to ensure that mobile resources are being used as efficiently and cost-effectively as possible.

Powerfleet shares are down over 31% year to date, but it’s one of the few AI companies priced below $10 that has positive returns over one, three and five years. Analysts rate it a “strong buy” and predict 125% upside, for an average price 12-month price forecast of $11.50. The low and high 12-month forecasts are $9 and $15, respectively.

4. Nio Inc. (NIO)

• Sector/industry: Consumer cyclical/Auto manufacturers
• Closing price on April 29: $4.24
• Average 12-month price target: $5.10
• Analyst rating: Strong buy
• What it does: NIO designs, manufactures and sells smart electric vehicles. The China-based company’s products include sedans, SUVs and charging solutions, and it also provides repair services.
• Why it’s a standout: NIO’s battery-swapping model reduces consumer concerns about EVs’ limited driving range.

NIO is a China-based manufacturer of electric vehicles with offices across China and Europe, along with a U.S. headquarters in San Jose, California. In addition to electric vehicles, the high-tech company markets EV charging solutions and lifestyle products.

Analysts are calling NIO a “buy” right now, according to Investing.com. They predict a high price target of $8.08, which is significantly higher than Nio’s $4.24 closing price on April 20. Its average one-year price target sits at $5.10.

Tesla may be the AI stock of choice for many investors, but NIO stock stands as a budget-friendly choice to support EVs and AI development for under $10 per share.

5. Lantronix Inc. (LTRX)

• Sector/industry: Technology/communication equipment
• Closing price on April 29: $2.15
• Average 12-month price target: $5.60
• Analyst rating: Strong buy
• What it does: Lantronix provides hardware and software for industrial Internet of Things and intelligent IT markets.
• Why it’s a standout: Lantronix sits at the forefront of SaaS and edge computing innovation serving a wide range of industries.

Lantronix is a global provider of hardware and software for the ever-evolving Internet of Things and device management. As such, it relies heavily on AI innovation and development. Headquartered in California with offices in Texas, Minnesota and across the globe, Lantronix is used across industries such as government, financial, transportation, utilities, healthcare and others.

Looking for a cheap AI stock under $10 with a promising future? Analysts rate Lantronix a “strong buy,” according to Investing.com, forecasting a high price target of $8, an average of $5.60 and a low of $4.50, which is still higher than its current selling price of $2.15 per share.

6. SoundHound AI Inc. (SOUN)

• Sector/industry: Technology/software – application
• Closing price on April 29: $9.47
• Average 12-month price target: $13.93
• Analyst rating: Buy
• What it does: SoundHound provides voice AI solutions for restaurants, hospitality venues, in-car technology and smart home devices, among other industries
• Why it’s a standout: SoundHound was an early entrant into the conversational voice AI space, and it continues to push the envelope with cutting-edge products and technologies.

SoundHound produces useful AI tech that’s fun to use, but it’s also a hint at the future and the positive applications for AI. Companies like Hyundai, Jeep, Samsung, LG and White Castle are already implementing SoundHound tech. If you want to invest in AI technology that you may already use, consider a few shares of this stock.

SoundHound is rated a “buy” by Wall Street analysts, according to Investing.com. With a predicted high of $26 over the next year, an average target of $13.93 and a low of $8, which is lower than the current price of $9.47, SoundHound could be a smart choice if you’re looking for an AI stock with a low entry point and plenty of profit potential.

7. Phunware Inc. (PHUN)

• Sector/industry: Technology/Software – application
• Closing price on April 29: $2.94
• Average 12-month price target: $6.31
• Analyst rating: Buy
• What it does: Phunware is a mobile experience platform that helps organizations manage their customers’ experience.
• Why it’s a standout: Phunware is on the cusp of rolling out an SaaS mobile app solution for small and mid-size businesses.

Phunware’s platform provides subscription services that help organizations use their mobile apps to engage more effectively with their customers and employees.

For example, children’s hospitals use it to help families find their way around the facility (within a meter of accuracy), order food, access in-room controls and review medical information. A conference center might use Phunware to deliver sponsor ads to attendees.

While current customers include large organizations like Cedar Sinai, Mayo Clinic and Gaylord by Marriott, the company is about to roll out a generative AI modular mobile app solution for small and mid-size businesses.

Analysts say Phunware is undervalued. Their average expectation is for shares to hit $6.31, an increase of over 121%, in the coming 12 months. While that represents a large range of $3 to $12 among the four analysts who watch the stock, three out of four rate it a buy and one rates it a hold, for a consensus “buy” rating.

8. VTEX (VTEX)

• Sector/industry: Technology/software application
• Closing price on April 29: $5.38
• Average 12-month price target: $8.92
• Analyst rating: Buy
• What it does: VTEX provides an SaaS digital commerce platform for brands, retailers and manufacturers.
• Why it’s a standout: VTEX has a global presence and partnerships with top-tier brands like PayPal, Amazon and Adobe.

VTEX calls its platform “a smarter path to commerce efficiency” that simplifies innovation, testing and growth for its customers. Its solutions allow companies to operate business-to-business and business-to-consumer models from the same platform, integrate inventory across channels, optimize sales and order fulfillment and expand market reach.

Analysts’s consensus rating for VTEX is “buy,” with just one analyst of the seven watching the stock rating it a “hold.” Their average price target is $8.92, a nearly 67% increase over the current price. Individual analysts’ targets range from $6.50, which would be a loss, to $12.

How Do Under-$10 AI Stocks Compare?

Here’s an at-a-glance comparison of GOBankingRates’ picks.

Which Cheap AI Stock Is Right For You?

If you’re looking to invest in the AI industry, you’ll find a plethora of stocks under $10. Which is right for you depends on your risk tolerance and investing goals, but here are some suggestions:

• Alight an investment in a company applying AI to traditional but vital business operations
• Ouster for exposure to cutting-edge technology in emerging industries like autonomous vehicles
• Powerfleet for investing in a market leader with a global presence
• NIO for exposure to both EV and AI
• Lantronix for an AI investment with applications across a wide range of industries
• SoundHound to invest in an AI company with an early-mover advantage
• Phunware for investing in a company poised for growth through expanding markets
• VTEX for mitigating risk with a company that has top-tier partnerships with blue-chip companies

Dawn Allcot contributed to the reporting for this article.

Data is accurate as of April 29, 2025, and is subject to change.

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