Artificial intelligence stocks under $10

Artificial intelligence took the investing world by storm in 2024 as advances in large language models gave people a taste of what this emerging technology is capable of.

Beyond the ChatGPT hype, AI is poised to reshape the global economy by automating repetitive tasks, optimizing decision-making, and transforming key industries such as finance, e-commerce, and transportation.

In addition, AI is driving growth in other technologies, such as robotics, cloud computing, and connected devices.

According to industry research, the global AI market was valued at roughly $196 billion in 2023 but is expected to reach $1.8 trillion by 2030. This 10x growth potential means there’s still plenty of upside for investors who’ve remained on the sidelines so far.

When deciding what AI stocks to buy in 2025, it’s important to consider companies that may be undervalued—or on the cusp of doing big things.

Here’s a list of six AI stocks to buy for under $10.

AI stocks to watch in 2025

Our list of AI stocks includes companies involved in lidar systems, business intelligence, autonomous vehicles, business automation, mobile applications, and even mining. These companies are pushing the envelope on artificial intelligence commercialization in one way or another.

AEye (LIDR)

AEye is a software company that develops technology for Advanced Driver Assistance Systems (ADAS) and other autonomous applications. The company’s main focus is lidar systems for the automotive, trucking, and smart infrastructure industries.

Although the company isn’t profitable yet, it’s considered a “capital-light business,” which means it doesn’t require significant investments and expenditures to drive growth. This has allowed AEye to reduce the amount of cash it’s burning for six consecutive quarters.

Revenues remain thin as of Q3 2024, but the company continues to make strides in product development and partnerships. In 2024, AEye completed a major in-vehicle driving test with Nvidia, potentially opening the door to future integration with the chipmaker.

LIDR currently trades at just over $2 a share, with a market capitalization of around $24.3 million.

BigBear.ai (BBAI)

BigBear.ai (BBAI) is an intelligence solutions company that provides AI-powered analytics for government agencies and businesses in the travel, manufacturing, and healthcare industries. It also specializes in cybersecurity engineering services, including AI-powered tools that help defend critical infrastructure.

It’s often said that government clients are better for business because they don’t run out of money. For BigBear, a steady stream of government contracts has allowed the company to grow its revenues over time. Some of its clients include the Department of Defense, the Department of Homeland Security, and the intelligence community.

In the third quarter of 2024, BigBear’s revenues increased by 22.1% year-over-year to $41.5 million. The company expects full-year revenues to increase between 6% and 16%, potentially reaching a cumulative $180 million.

BBAI stock has rallied by more than 120% over the past year but still trades at just $4.53. It has a total market capitalization of $1.1 billion.

Nio (NIO)

Nio is one of China’s largest electric vehicle manufacturers focused on designing and developing smart, high-performance cars. The company delivered nearly 222,000 vehicles in 2024.

Like other EV makers, Nio uses artificial intelligence in many aspects of its vehicles, including the NOMI AI companion, its assisted and intelligent driving features, and its innovative battery-swapping service.

In June, NOMI AI reached 10 million user interactions just 76 days after the company launched an updated version of its voice assistant.

Despite its strong industry presence, Nio’s earnings have disappointed investors recently. The company posted weaker-than-expected revenues in the third quarter and failed to trim its net losses.

However, management said it’s confident it can double car sales in 2025 as its sub-brands continue to gain traction in a highly competitive EV market.

According to CEO William Li, Nio is expected to ship 442,000 vehicles in 2025 across its various brands.

In the meantime, NIO stock has struggled to gain traction, having declined 45% year over year. It currently trades at $4.66, with a total market capitalization of around $9.5 billion.

Phunware (PHUN)

Phunware is an AI-powered software company that helps brands monetize their mobile applications. The company’s integrated platform uses generative AI to design and optimize mobile applications for businesses across several industries, including hospitality, healthcare, and retail.

Interim CEO Stephen Chen said the company’s “expanded focus includes developing and delivering AI-driven platforms that make real-time, on-demand coordination and engagement accessible to organizations of all sizes.”

This focus has allowed Phunware to attract major clients, including FOX, CBS, NBS, Marriott, Cisco, PwC, and Intel. These and other clients have allowed PHUN to increase its software and subscription bookings by 300% year-over-year as of the third quarter of 2024.

On the earnings front, the company is working on reducing operating losses. For its fiscal third quarter, Phunware reported a net loss from continuing operations of $2.8 million—down significantly from $13.7 million one year earlier.

PHUN stock currently trades at $5.58, having gained more than 30% over the past year. Its market cap is $111 million.

Alight (ALIT)

Alight is a technology and consulting firm that provides cloud-based business and human resource solutions. Businesses use Alight to help their employees navigate company-wide HR, healthcare, and defined contribution policies.

Alight’s AI-powered chatbots help streamline employee queries about their employer’s benefits and HR policies. The Alight LumenAI technology automates HR tasks and provides a more personalized user experience.

Alight has roughly 10,000 employees across 15 locations. It is a revenue-generating machine, with third-quarter sales reaching $555 million. Its business process service revenues were especially strong, growing 18.6% to $121 million.

The company highlighted Hewlett-Packard, Nokia, and Siemens as new or expanded clients in the third quarter.

Management expects sales to grow significantly in the fourth quarter with a target of between $665 million and $685 million.

Despite its recent success, ALIT stock is down more than 19% over the past year to trade at $6.82. It has a total market capitalization of $3.7 billion.

The company made a strategic decision last year to sell off its payroll and professional services business to focus on its core work-life platform. The sale could save the company $75 million this year.

Vale SA (VALE)

Vale SA isn’t a typical artificial intelligence play. The Brazilian multinational mining company is one of the world’s largest iron ore and nickel producers. It also produces other industrial commodities such as ferroalloys, bauxite, and potash.

The company uses AI to optimize its global mining operations, including analyzing data from sensors and equipment and using predictive analytics to prevent equipment and operational failures.

Before the pandemic, Vale developed a dedicated artificial intelligence center to help monitor company-wide AI initiatives worldwide. At the time, management said the AI center would “support thousands of assets,” such as trucks, excavators, trains, and conveyor belts.

“Vale uses AI systems to collect and analyze millions of data from its projects, generating insights that will help predict problems and influence decision-making,” the company said.

Vale SA reported a net operating revenue of $9.6 billion in the third quarter of 2024. It also reported a net income of $2.4 billion. The results were strong, but well below analysts’ forecasts.

The missed earnings and revenue targets contributed to a sharp sell-off in VALE stock, which means investors can scoop up shares for less than $10 again. The stock is currently valued at $8.67 for a total market capitalization of $36.9 billion.