Artificial Intelligence Stocks Under $10 

The post Artificial Intelligence Stocks Under $10  by Benzinga Contributors appeared first on Benzinga. Visit Benzinga to get more great content like this.

Artificial untelligence (AI) stocks under $10 are publicly traded companies developing or applying AI technologies, with stock prices below $10 per share. These lower-priced AI stocks can present promising investment opportunities due to the AI industry’s rapid growth and transformative potential. As AI continues to revolutionize various sectors, these stocks could experience significant appreciation in value. However, investing in AI stocks may come with higher risks than investing in more established companies.

Top Artificial Intelligence Stocks Under $10:

Rekor Systems Inc. (REKR)

Rekor Systems Inc., a software technology company, was incorporated in 2017 and is headquartered in Columbia, Maryland. The firm provides AI-driven infrastructure solutions for transportation, public safety and urban mobility. Its platforms include the Rekor One AI-powered roadway intelligence platform; Rekor Command, a suite of applications for traffic management centers; and Rekor Scout, automating manual processes through collaborative solutions that keep stakeholders informed and expedite incident response times. 

Recently, Rekor Systems introduced Rekor Discover™ – a next-generation solution for AI-based traffic studies and analytics. It also won a patent for its privacy-centered traffic management technology. 

As of June 11, 2024, Rekor Systems stock closed at $1.56. The company’s focus on AI-driven solutions for public safety and urban mobility aligns with trends toward smart city developments and could present growth opportunities.

SoundHound AI Inc. (SOUN)

SoundHound AI Inc. is a voice AI and speech recognition technology company based in California. Founded in 2005, the company aims to facilitate seamless interaction with technology through natural language. Their products range from voice AI platforms for businesses to consumer apps for music recognition. 

SoundHound AI’s recent move to pay off its outstanding $100 million debt signaled a robust cash position and solid financial profile. However, despite a significant drop from its all-time high, the company continues to grow and secure new customers. The stock is currently trading at $4.65 

SoundHound AI Inc. could be a promising investment due to its involvement in the rapidly expanding AI market with its specialized audio and speech recognition services, poised for significant growth as adoption increases. The company’s unique positioning with its Houndify app offers an attractive alternative for businesses seeking to avoid dependence on larger tech ecosystems. 

WiSA Technologies Inc. (WISA)

WiSA Technologies Inc. is a leading innovator in wireless sound technology for intelligent devices and next-generation home entertainment systems in consumer electronics. It is currently priced at approximately $2.67 per share. 

Formerly known as Summit Wireless Technologies Inc., the company develops, markets and sells spatial audio wireless technology and is a founding member of the WiSA Association, which defines wireless audio interoperability standards. 

WiSA Technologies has made giant strides in expansion in the wireless audio market through innovative licensing deals, including securing five WiSA E licensing agreements with expectations for eight by year-end and a successful $10.0 million public offering. 

The company has also regained compliance with the Nasdaq minimum bid price rule, positioning itself for potential growth and continued market presence and making it an attractive consideration for investors.

Parazero Technologies Ltd. (PRZO)

Parazero Technologies Ltd. operates in the industrial sector, specifically within the Aerospace & Defense industry. Founded in 2013 and headquartered in Kiryat Ono, Israel, the company specializes in autonomous parachute safety systems for commercial drones. As of June 11, 2024, its stock is trading at $0.61 per share.

Its SafeAir systems monitor Unmanned Aerial Systems (UAS) flight in real-time, identifying critical failures and autonomously triggering a parachute during emergencies. 

The company has just signed a deal to develop and supply customized safety systems to a UAE-based manufacturer of heavy-lift cargo drones. Similarly, it has successfully integrated its safety technology into Draganfly’s Commander 3XL Drones for home hospital delivery and emergency response and also completed a drone safety project with a leading Fortune 500 automotive manufacturer, resulting in an additional order. 

Parazero serves a diverse range of system manufacturers, resellers and online stores. Its active collaborations and participation in industry events like the Xponential 2024 conference underscore its technical capabilities and commitment to driving innovation in the drone safety systems market.

FiscalNote Holdings Inc. (NOTE)

FiscalNote Holdings Inc., currently trading at $1.19 per share, is an Information Technology Services company headquartered in Washington, D.C. Founded in 2013, it provides global policy and market intelligence by combining AI, machine learning and analytics with workflow tools and expert research. 

FiscalNote’s suite of public policy and issues management products serves a diverse clientele, including Fortune 100 companies, government agencies, law firms, professional services organizations, trade groups and nonprofits.

Investors might find FiscalNote’s focus on AI-driven growth, product launches and strategic developments particularly compelling for future performance. Its recently released reports from the 2024 Annual Shareholders Meeting showed significant improvements in Q1 2024 earnings. The report highlighted the company’s divestment of Board.org for $103.0 million, further strengthening its balance sheet. FiscalNote also announced the launch of its FiscalNoteGPT and Co-pilot Creator Reasoning Engine. 

Best Online Brokers for Artificial Intelligence Stocks Under $10

When looking for the best online brokers to invest in AI stocks under $10, here are some options to consider

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Active and Global Traders

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get started securely through Interactive Brokers’s website

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Active and Global Traders

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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

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Leveraged Trading

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get started securely through Plus500’s website

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Disclosure: 82% of retail accounts lose money

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Leveraged Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments. 

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

Best For

• Traders looking for a smooth mobile experience

Pros

• Great mobile app
• Low spreads and commissions
• Unlimited demo account

Cons

• Only derivatives are available
• Not open to U.S. residents

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Trading Ideas

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get started securely through public.com’s website

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Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

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Beginners

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get started securely through Robinhood’s website

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Beginners

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Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Best For

Active Short Sellers With Modest Capital

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get started securely through TradeZero’s website

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Active Short Sellers With Modest Capital

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TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.

Best For

• Traders seeking high transparency and mobility in a stock trading program
• Those attracted to commission-free trades
• Those seeking a free version of a high-quality trading program

Pros

• 24/7 live customer support
• Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
• Mobile app allows users to access stocks and trade in real-time while on the go

Cons

• Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
• Mobile app could offer more features

Why Invest in Artificial Intelligence Stocks?

AI stocks are an attractive option for investors looking to capitalize on the future of technology and its applications in the global economy.

• Potential for high returns: AI stocks have demonstrated the potential for high returns, with some investors realizing significant profits. The rapid advancements and widespread applications of AI across various sectors contribute to the potential for substantial growth and profitability.
• Increasing demand for AI solutions: There is a growing demand for AI solutions across multiple industries, from manufacturing to health care. This surge in demand is driven by AI’s ability to enhance efficiency, reduce costs and create new opportunities for innovation.
• Growth of the AI industry: The AI industry is growing exponentially, with projections indicating a substantial increase in market size and annual growth rates. This expansion is fueled by continuous technological advancements, increased adoption rates and the integration of AI into various business processes and consumer products.

Things to Consider Before Investing in AI Stocks

Before investing in AI stocks, several factors that can influence the potential success and sustainability of the investment must be considered. 

• Revenue generation model: AI companies may adopt various revenue models to monetize their technologies effectively. A common model is the Software as a Service (SaaS) subscription, where clients pay for access to cloud-based AI software solutions on a subscription basis. Another prevalent model is AI Platform as a Service (PaaS), which charges for access to platforms that enable AI development. Also, AI as a service model is employed, where companies offer one-time or annual services, often used in robotics or software applications requiring periodic updates. Each of these models has unique advantages that serve different market needs and adopting the right model positively impacts the company’s revenue stability and growth potential.
• Business model sustainability: Assess the sustainability of the company’s business model. AI companies often rely on continuous innovation and adaptation to stay competitive. Look for companies with a clear strategy for maintaining their competitive edge.
• Specific AI technologies: The company’s specific AI solution also plays a crucial role in its success. For instance, generative artificial intelligence tools have seen widespread adoption and are transforming various industries. Investing in companies that lead in these areas can offer substantial growth opportunities as these technologies gain more traction and become integral to business operations across sectors.
• Industry competitiveness: A competitive race is unfolding, with a noticeable gap between companies heavily investing in AI and those lagging behind. Companies at the forefront of AI research and development are more likely to capture larger market shares and sustain their competitive advantage, making them attractive investment options.
• Management team: A strong management team with a proven track record in the AI sector and expertise in innovation and successful digital transformation can significantly influence the company’s trajectory. Effective teams often include diverse roles such as AI architects and machine learning engineers, who are essential for operationalizing and scaling AI initiatives. The leadership’s vision and ability to navigate the complexities of AI implementation can determine the company’s success.

Risks and Challenges 

Investing in AI stocks, like any investment, comes with its share of risks and challenges.

• Volatility: The stock market is naturally volatile, with prices changing due to many factors. AI stocks, part of the tech sector, are especially prone to quick shifts in investor mood. This volatility, measured by the standard deviation of price changes, emphasizes the need for careful risk management when investing in AI stocks.
• Regulatory and ethical Concerns: AI rules are still changing, with regulations in the EU, UK and U.S. affecting how AI companies work. People are also increasingly concerned about data privacy and AI fairness, which could affect how the public sees these companies and the applicable regulations. These concerns are getting more attention and could change how AI companies operate and how much they’re worth.
• Technological advancements and competition: AI is moving fast, with breakthroughs like generative AI tools becoming widely used. Competition is intense, creating a growing divide between AI-investing companies and those that aren’t. This competitive environment often results in “creative destruction,” where only the most innovative and flexible companies survive and thrive.

Frequently Asked Questions 

The post Artificial Intelligence Stocks Under $10  by Benzinga Contributors appeared first on Benzinga. Visit Benzinga to get more great content like this.