· Ai,Machine Learning

Cheapest AI Stocks

We examine stocks that directly deal with artificial intelligence technology, with a focus on their share prices to determine the cheapest AI stocks. Recall that cheap stocks do not necessarily equate to a solid investment. They may have terrible financials that would render them unattractive at any price level. Here are eight AI stocks listed from cheap to expensive on a share price basis.

1. Rekor Systems (NASDAQ: REKR) 

Rekor Systems is a company that provides license plate readers and security solutions using artificial intelligence. The company began trading in September 2017. It initially tumbled to under $1/share and remained there until mid-2019. It finally broke out at that point, but it was not until late 2020 when the stock went on a tear, peaking at $25.38 in late April of this year. 

It has declined nearly 75% from its peak, due to lower than expected earnings and doubts about the company’s future performance. But, at $6.71/share, it is one of the cheapest AI stocks that one can buy today. And on a revenue multiple, it might be the cheapest anywhere! The company is still growing fast and just announced a merger with a competitor, which should add to its overall product offering and strength with customers.

Source: Yahoo Finance 

2. Innodata (NASDAQ: INOD)

Innodata is a data engineering company that provides business, technology, and consulting services through the fusion of artificial intelligence and human expertise. The company began trading publicly in August 1993. 

After initially tumbling from its trading debut for a few years, it rose back to about $10/share in 2004. However, from its chart, we see that the stock price has fluctuated between about the $1-2 range to the $8-10 range. Although this stock is cheap at its current price of $7.78/share, we believe that there is very little upside left since it is nearing the high range of its price. The lack of profitability and ridiculously high P/E level of 132.67 also make this investment risky. 

Source: Yahoo Finance

3. eGain (NASDAQ: EGAN) 

eGain is a cloud-based digital software company that provides a suite of applications that businesses can use to serve and sell to customers. The company began trading publicly in September of 1999. The stock initially went up from the internet adoption hype but collapsed during the dot-com bubble. It never recovered, and the stock did a reverse split. We see that the stock is up 234% over a 5-year period. Although it is currently trading at $10.69/share, we think that there is very little upside due to a lack of profitability and a high P/E level of 49. 

Source: Yahoo Finance

4. Cloudera (NYSE: CLDR) 

Cloudera is a company that provides an enterprise data cloud using open-source technology. The platform uses data analytics and machine learning to gain insights into big data. The stock made its trading debut in April of 2017. Cloudera has been one of the lesser volatile AI stocks, although it is trending downward. However, its financials do not look good as they are also an unprofitable company. But they are slowly making their way towards profitability and perhaps at $15.94/share, could be worth a shot to invest. It is only about 12% off its IPO price.  

Source: Yahoo Finance

5. Veritone (NASDAQ: VERI) 

Veritone is an AI tech company providing technological products and solutions to a wide range of industries such as media, sports, government, energy, and law enforcement. The company began trading publicly in May of 2017. From its debut, it rose to over $50 but tumbled after. It then recovered again from the pandemic bottom and peaked again in February of this year. It is currently 65% from the February highs at $17.73/share. Clearly, the chart exhibits a cup and handle pattern, indicating that it is bullish once the handle finishes forming. 

Source: Yahoo Finance

6. Palantir (NYSE: PLTR) 

Palantir is a software company that helps institutions solve their problems using big data analytics. The company began trading publicly in October of 2020. Palantir’s stock has had a solid run, reaching $45/share at one point due to retail traders on Reddit’s WallStreetBets. However, it is about 40% off its highs but still about 200% from its IPO price. Currently trading at $24.01/share, we believe that it is still a solid play for the long term as their financials will improve through contracts with the federal government.

Source: Yahoo Finance

7. C3.ai (NYSE: AI) 

C3.ai is a software company that builds enterprise-scale AI and IoT apps to solve business problems that were not able to be solved. The stock began trading publicly in December of 2020. The stock initially popped about 35% from its IPO price by February but that was the most it could go. It has since fallen by over 70% and did a reverse split stock to make its post-split share price look similar to the IPO price. At $45.51/share, this is quite expensive and its financials do not justify the current valuation as a $4.4B stock. For each quarter, they have been unprofitable. 

Source: Yahoo Finance

8. Upstart (NASDAQ: UPST) 

Upstart is a company that partners with banks and credit unions to use AI technology to issue loans to consumers. 

The AI algorithm employs nontraditional variables such as employment and education to predict creditworthiness. The company began publicly trading in December of 2020. Since its start, it has been on a tear, rising nearly 350% in 8 months. Upstart is a rapidly growing company that blew away analyst expectations in regards to earnings and is already profitable. Although it is one of the most expensive AI stocks out there, we believe that there is still room for this to run in the future as it replaces the traditional FICO score. 

Source: Yahoo Finance

Written by Jay Devon & Edited by Vivian Fang

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