6 Best AI Stocks Under $5
Artificial intelligence is the darling of the investing set at the moment, and opportunities abound. But many of the big names in this space come with equally big stock prices. Keep reading to find out the best best AI stocks under $5.
6 Best AI Stocks Under $5
Looking to invest in AI and machine learning stocks but don’t want to spend more than $5? Here are six of the best AI stocks under $5 that are worth a look:
- Rekor Systems Inc. (REKR)
- Nerdy, Inc. (NRDY)
- SoundHound AI (SOUN)
- AudioEye, Inc. (AEYE)
- BigBear.ai Holdings (BBAI)
- Duos Technologies Group, Inc. (DUOT)
1. Rekor Systems Inc.
Rekor Systems Inc. (Nasdaq: REKR) uses AI for transportation management, public safety and “roadway intelligence,” according to its website. Using AI to aggregate roadway data, Rekor collects information from over 30,000 sites and 13 million vehicles over 775 billion miles to provide data and insights that help government and commercial customers understand traffic and improve communities.
Rekor closed at $2.75 on Nov. 7, 2023. Year to date, it has returned 129.17%, and the current average analyst 12-month price target is $4.25. The company missed EPS estimates in the first and second quarters of 2023 but had beaten the fourth quarter of 2022 estimate.
2. Nerdy, Inc.
Nerdy Inc. (NYSE: NRDY) is a live online learning platform that uses AI to personalize learning of over 3,000 subjects. The company offers one-on-one, small-group and large-group learning experiences to consumers and educational institutions. There is also a self-study option that allows users to target problem areas.
Nerdy, Inc. stock closed at $3.10 per share on Nov. 7, 2023. The stock is up 37.78% year to date, and analysts expect it to reach $5.00 to $8.00 per share in the next 12 months, with $6.00 being the average target. The company recently announced its third quarter 2023 results, indicating it beat revenue and non-GAAP adjusted EBITDA guidance. The company reported gross profit of $29.2 million, up 33% year over year. Its net loss was $20.5 million, compared to a loss of $32.3 million in the same period a year ago.
3. SoundHound AI
SoundHound AI (Nasdaq: SOUN) creates AI-enabled voice solutions for restaurants, hospitality businesses, contact centers, automotive applications, smart devices and more. With Automatic Speech Recognition, Natural Language Understanding and Text-to-Speech technology, SoundHound AI’s products help businesses improve efficiency and customer service.
SoundHound shares closed at $1.82 on Nov. 7, 2023. The stock is up 2.82% year to date, far less than some other sub-$5 AI stocks but has plenty of running room. Analysts’ 12-month price targets range from $4.00 to $7.00, with an average of $5.04. The company beat its consensus EPS estimates in the fourth quarter of 2022 and the second quarter of 2023 but missed in the first quarter of 2023.
4. AudioEye, Inc.
AudioEye, Inc. (Nasdaq: AEYE) provides digital accessibility platforms to help companies ensure their website and other technology is accessible to everyone. The company performs accessibility audits and training and provides app and content accessibility services.
AudioEye, Inc. shares closed at $4.57 on Nov. 7, 2023. The stock is up 19.32% year to date, and analysts expect it to be between $8.00 and $10.00 per share a year from now. The company reported third-quarter earnings on Nov. 2, 2023, announcing a non-GAAP profit of $300,000 on revenue of $7.83 million. The company reported a net loss of $1.35 million, an improvement over the loss of $2.28 million a year earlier.
5. BigBear.ai Holdings
BigBear.ai Holdings (NYSE: BBAI) provides AI-powered intelligence solutions to military and commercial customers in three core markets: global supply chain and logistics, autonomous systems and cybersecurity.
BigBear.ai recently announced its intention to acquire Pangiam, a facial recognition and advanced biometrics company, for $70 million in stock. The acquisition of Pangiam will allow BigBear.ai to market a full-vision AI portfolio, including near-field and far-field vision AI.
On Nov. 7, 2023, BigBear.ai Holdings closed at $1.56. The stock has had a YTD return of 129.23%, and the average analyst price target is $3.67.
BigBear.ai Holding missed consensus estimates for EPS in the fourth quarter of 2022 and in the first and second quarters of 2023. Third quarter 2023 results were revealed after the bell on Nov. 7, and the company announced 8% revenue growth quarter over quarter, and a gross margin of 29% compared to 27% a year ago. The company reported a net loss of $16.1 million, driven primarily by higher expenses as a public company, plus integration and infrastructure costs.
7. Duos Technologies Group, Inc.
Duos Technologies Group, Inc. (Nasdaq: DUOT) uses artificial intelligence and automation to improve the rail industry’s ability to efficiently move commerce and people. The company provides an automated Railcar Inspection Portal to streamline to inspection process, both on mainlines and in yards. The company also provides command and control software, undercarriage examination technology and more.
Duos Technology Group stock is up 84.5% so far this year, and closed on Nov. 7, 2023, at $3.69 per share. Analysts expect the stock to reach between $8.25 and $10.00 per share in the next 12 months, with the average price target being $9.13 per share. The company will report third quarter 2023 earnings on Nov. 13, 2023.
Final Take
The artificial intelligence and machine learning sector is still in its early stages, and, while many companies have already made a name for themselves — and have the stock prices to prove it — there will be others who will also likely see considerable growth. These companies, whose stocks are now trading below $5 per share, may be the next Nvidia five years from now. On the other hand, they could be out of business. Some investors may turn a huge profit in this sector, but there is always risk. Getting in on these positions in the early days may be a great opportunity, but be sure not to invest more than you can afford to lose.
FAQ
Here are the answers to some of the most frequently asked questions regarding the best AI stocks.- What are the best AI stocks to buy now?
- Some of the best AI stocks that you can buy with less than $5 are Nerdy, Inc (NRDY), BigBear.ai Holdings (BBAI) and AudioEye, Inc (AEYE). These stocks are poised to see considerable growth in the future.
- What are six AI stocks to bet on?
- Six AI stocks that should be on your radar are:
- Rekor Systems Inc. (REKR)
- Nerdy, Inc. (NRDY)
- SoundHound AI (SOUN)
- AudioEye, Inc. (AEYE)
- BigBear.ai Holdings (BBAI)
- Duos Technologies Group, Inc. (DUOT)
- Six AI stocks that should be on your radar are:
- Are AI stocks a good long-term investment?
- AI stocks could be a good and profitable long-term investment. But with these stocks comes risk. Before investing in a specific stock, make sure you research its performance outlook and never invest more than you can afford to lose.
Data is accurate as of Nov. 8, 2023, and is subject to change.
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- GuruFocus. 2023. "AudioEye Inc (AEYE) Reports Record Third Quarter 2023 Results with Non-GAAP Profit of $300,000."
- BusinessWire. 2023. "Nerdy Announces Third Quarter 2023 Financial Results."
