9 Best AI Penny Stocks Under $10

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 8 artificial intelligence stocks under $10 to show you the companies that are taking advantage of AI tech but still have relatively low valuations.

The 10 best AI penny stocks under $10

Without further ado, let’s get into our list of the 10 best AI stocks to watch under $10.

• Rekor Systems – Using AI to analyze mobility data
• Canaan – Chip manufacturer focusing of AI and crypto mining
• Himax Technologies – Chip manufacturer with AI-enabled product line
• SoundHound – Major player in voice AI
• Lantern Pharma – A company with an AI-powered drug development platform
• Evolv Technologies – AI-powered security screening technology
• Predictive Oncology – Using AI tech in oncology
• BigBear.ai – A company that uses AI for decision intelligence solutions

1. Rekor Systems

The first on our list of the 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 $262 million.

2. Canaan

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 as well as 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 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, as well as robotics.

Canaan is listed on the NASDAQ stock exchange, where it trades under the ticker symbol CAN. It currently has a market capitalization of $388 million.

3. Himax Technologies

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 $1.07 billion.

4. SoundHound

SoundHound is a company specialized 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 $606 million.

5. Lantern Pharma

Lantern Pharma is a pharmaceutical company that’s focused 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 never smokers suffering from non-small cell lung cancer.

Lantern trades on NASDAQ under the ticker LTRN, and has a market capitalization of just under $50 million. 

6. Evolv Technologies

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 $1.05 billion at the time of writing.

7. Predictive 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 $17.4 million market capitalization at the time of writing.

8. BigBear.ai

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 supply chain and logistics management, cybersecurity and autonomous systems. 

A big part of BigBear.ai’s business are 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 $255 million. 

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.

FAQs

Are there any AI penny stocks?

Yes, there are quite a few companies with relatively small valuations that utilize AI technology. Examples include:

• Rekor Systems – Using AI to analyze mobility data
• Canaan – Chip manufacturer focusing of AI and crypto mining
• Himax Technologies – Chip manufacturer with AI-enabled product line
• SoundHound – Major player in voice AI
• Lantern Pharma – A company with an AI-powered drug development platform
• Evolv Technologies – AI-powered security screening technology
• Predictive Oncology – Using AI tech in oncology
• BigBear.ai – A company that uses AI for decision intelligence solutions

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.