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Artificial Intelligence

Artificial Intelligence Stocks Under $10

Artificial intelligence is changing the way we work, the way we commute, and quite possibly the way we eat; at least later down the line. The easiest way to get involved in the global AI paradigm shift is through investing in AI stocks. Luckily, as we are right at the beginning of the AI revolution, there are a multitude of stocks that are trading for under $10. But are these stocks legit, and is it time to get involved? Below, we will break down why AI stocks are poised for growth and the top AI stocks that won’t break the bank!

Why are cheaper AI stocks on the radar?

Artificial intelligence might be powering billion-dollar breakthroughs, but not every opportunity comes with an extreme price tag. In fact, there are several options for investors that are cheaper than a Big Mac meal from McDonald’s.  The AI frontier is not only a frontier in the progression of homo sapienes, it’s a frontier in finance as well. Some of these companies could revolutionize the way we live and work, in a way that many of us can’t even comprehend.  For investors willing to explore the AI frontier, stocks under $10 present a compelling mix of accessibility, innovation, and potential upside.

Top artificial intelligence stocks under $10 (2025)

With hundreds of AI-related tickers floating below the $10 mark, separating the promising plays from the speculative noise is essential. The companies below have either carved out a niche in applied AI or are showing early signs of commercial traction. They span sectors from defense analytics to voice technology and edge computing, each offering a unique angle on the AI revolution.

The table below summarizes key data points to help investors quickly assess where these companies stand in 2025.

CompanyTickerSector focus
BigBear.aiBBAIGovernment AI / Data analytics
SoundHound AISOUNVoice AI / Natural language processing
Guardforce AIGFAISecurity robotics / Smart surveillance
LANTRONIXLTRXEdge AI / IoT infrastructure
Oblong Inc.OBLGAI collaboration platforms

12-month performance chart: How under-$10 AI stocks have moved through market cycles

This chart tracks the monthly stock prices of BBAI, SOUN, GFAI, and LTRX from April 2024 to April 2025, revealing patterns of volatility, investor sentiment shifts, and how each company has responded to broader AI sector momentum.

 

In-depth look: 5 under-$10 AI stocks to know

Now that we’ve scanned the broader landscape, let’s take a closer look at five of the most compelling sub-$10 AI stocks in 2025. Each of these companies brings something different to the table, whether it’s defense contracts, voice AI, robotics, or edge infrastructure. Below, we break down how each one operates, where they’re gaining traction, and what investors should be watching.

BigBear.ai (BBAI)

BigBear.ai is a data analytics company with deep ties to U.S. defense and intelligence agencies. It uses AI to deliver actionable insights in high-risk, complex environments, such as combat logistics, cyber defense, and battlefield simulations.

BigBear is a classic “picks and shovels” play for military AI infrastructure, and its US defense credentials make it a solidid play if you believe in the stability of government contracts. It’s not flashy, but it’s built for critical applications and has the U.S. government on speed dial.

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Why it stands out:

  • Niche focuses on defense-grade AI
  • Contract history with DoD and intelligence agencies
  • Volatile but liquid stock with strong momentum on military spending news

SoundHound AI (SOUN)

SoundHound AI is the company that’s going to create cold calls from celebrities that are indistinguishable from the real thing. Can you imagine Matthew McConaughey trying to sell you a credit card or a phone plan? It specializes in conversational voice interfaces powered by advanced speech recognition and natural language processing. Its technology is used by automakers, restaurants, and customer service platforms to power voice commands and AI chat functions.

The company is carving out a space between Big Tech and real-world voice applications, serving both enterprise and end-consumer markets.

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Noteworthy facts:

  • Strategic partnerships with Hyundai, Snap, and Mastercard
  • Expanding into AI voice ordering for restaurants and retail
  • Revenue growth is supported by increasing commercial adoption

Guardforce AI (GFAI)

Guardforce AI is a robotics and AI security company based in Asia, offering autonomous solutions for surveillance, disinfection, and smart facility management. Its core market includes airports, hotels, and logistics hubs across Hong Kong, Thailand, and Singapore. Although there are risks, it could be used in the application of a totalitarian state in Mainland China; the upside of its tech is nothing to scoff at.
While small, the company operates in a sector with real-world deployment of AI-powered robotics and smart vision technology.

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Key strengths:

  • Commercial focus on AI robotics for security and logistics
  • Expanding presence in Southeast Asia and the Middle East
  • Highly responsive to automation and surveillance trends

LANTRONIX (LTRX)

LANTRONIX builds hardware and software for edge computing and IoT infrastructure, enabling AI processing at the device level rather than the cloud.  There are dangers associated with hacking and keeping valuable AI materials on the cloud, and thus, it could serve a very important purpose. Its products support smart factories, vehicles, and connected medical equipment.
The company is one of the few under-$10 stocks offering exposure to AI’s foundational layer, connectivity, and edge-device enablement.

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Why investors like it:

  • Core player in edge AI and industrial IoT
  • Established partnerships in auto, medtech, and smart logistics
  • Fundamentally stronger than most sub-$10 AI peers

Oblong Inc. (OBLG)

Having too many screens and not enough coordination can be cumbersome. Oblong develops immersive collaboration tools using AI to enhance communication across multiple screens and digital environments. It targets hybrid workforces and enterprise clients looking for more dynamic meeting experiences.
While extremely small, it occupies a speculative niche that may gain value as metaverse and virtual workspace trends re-emerge.

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Risky but interesting:

  • Unique positioning in AI-enhanced collaboration
  • Potential metaverse or enterprise tech acquisition target
  • Very low float makes it reactive to volume surges

Visual snapshot: Market cap and share price comparison of AI stocks under $10

This chart shows how the top under-$10 AI stocks stack up in terms of market capitalization and share price. This reveals a gap between the perceived value of the stock and the actual value at sale.  It can help visualize which companies are true micro-caps versus emerging mid-tier players with broader institutional interest.

Are these AI stocks for under $10 risky?

While the idea of scooping up the “next big AI winner” for under $10 is appealing, these low-priced stocks come with their own set of red flags. Most are small-cap or micro-cap companies, meaning they exist in a high-risk, high-reward zone. Below are the key reasons why caution is critical when approaching this corner of the market.

Thin liquidity

Low-priced stocks often trade with limited volume, which means there may not be enough buyers or sellers at any given time to execute large orders without affecting the price. This illiquidity can result in sharp price swings, even on low news impact, and makes it harder to exit a position when needed. In volatile sectors like AI, where news flow drives momentum, a lack of liquidity can magnify both gains and losses.

Low analyst coverage

Most sub-$10 AI stocks receive little to no attention from institutional analysts or major research desks. That means fewer earnings forecasts, minimal investor guidance, and a general lack of transparency. Without strong third-party insights or robust earnings calls, investors must rely more heavily on company press releases and SEC filings, both of which can be selectively framed.

This “informational vacuum” can lead to a higher chance of mispricing, poor investor sentiment, and missed red flags.

High beta and volatility

AI stocks, especially speculative ones, tend to have high beta values, meaning they’re more sensitive to market swings than the broader indices. For example, a 2% move in the Nasdaq could translate to a 10 %+ move in a micro-cap AI stock.

  • These price swings can be triggered by:
  • Earnings misses or guidance revisions
  • Dilution through new stock offerings
  • Geopolitical tech tensions (e.g., U.S.–China chip policy)
  • AI industry news (like updates from OpenAI, Nvidia, or regulatory changes)

Fundamental gaps

Most AI companies trading under $10 have not achieved profitability. Many are pre-revenue or early-revenue, and their business models hinge on either rapid scaling or being acquired.

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Investors should review financials with an eye toward:

  • High R&D burn rates
  • Low cash reserves
  • Repeated dilution through secondary offerings
  • Weak or declining revenue per quarter

Without a strong balance sheet or proven revenue engine, these companies can burn through cash fast. In that case, they’ll either need to raise capital (further diluting shareholders) or risk going dark entirely.

Runway matters

As many of these AI companies are both not profitable and not showing amazing cash-flow metrics, the question must be asked. How long can the company operate without additional funding? A company with 12–18 months of runway might have time to prove its product or attract a buyer. One with less than six months and no real pipeline? That’s a ticking clock.

With capital markets tightening and interest rates still elevated, financing isn’t as cheap or available as it was in the easy-money years. Investors need to check cash flow statements and footnotes, not just product demos and press hype.

Best strategies for investing in sub-$10 AI stocks

Not all under-$10 AI stocks are created equal, and neither are the strategies used to invest in them. Depending on your risk appetite, timeline, and portfolio composition, these plays can serve very different purposes. Some investors aim for asymmetric upside by holding long-term, while others treat these stocks like tactical trades, riding short-term catalysts for quick gains.

Here are three proven strategies for approaching this volatile space, along with the types of investors they best serve:

StrategyWhat it involvesBest for
Speculative growthBuy small-cap stocks based on future vision or acquisition potentialRisk-tolerant long-term investors
Momentum tradingCapitalize on news, hype, and volume surgesActive traders who monitor markets closely
AI portfolio diversificationAdd low-cost stocks to balance big names like NVDA and MSFTInvestors with existing exposure to AI megacaps

Speculative growth

This strategy involves identifying small AI companies with big ideas, early-stage innovators that might not be profitable yet but show promise in terms of product-market fit, IP portfolio, or customer pipeline. Investors using this approach are betting on potential rather than current performance.

It’s a long-term play, often requiring patience through volatility and market cycles. Companies like BigBear.ai or LANTRONIX may appeal to this camp, especially if there’s a possibility of acquisition by a larger tech player.

Momentum trading

Sub-$10 AI stocks often behave more like momentum vehicles than long-term compounders. On earnings days, contract announcements, or major tech policy news, these tickers can move 10–50% in a single session.

Traders who specialize in short-term moves use technical indicators, volume signals, and sentiment monitoring tools (like X/Twitter, StockTwits, or Reddit) to time entries and exits. This isn’t a passive strategy; it’s active and requires discipline.

AI portfolio diversification

If you’re already holding large-cap AI leaders like Nvidia, Alphabet, or Microsoft, adding under-$10 names can provide exposure to more specialized corners of the ecosystem, robotics, speech recognition, edge computing, or military-grade analytics.

This is a classic satellite-core strategy: keep your core holdings in dominant, stable players and use small, speculative positions to boost growth potential.

This approach helps balance the stability and scale of large-cap AI leaders with the explosive upside potential of emerging players. By layering in smaller positions from high-risk, high-reward names, investors can gain broader exposure to innovation without jeopardizing the foundation of their portfolio. It’s not about chasing moonshots, it’s about positioning yourself across the entire AI value chain.

FAQ

How can I tell if a sub-$10 AI stock is a legitimate company and not a pump-and-dump?

Start with the fundamentals. Check if the company files regular reports with the SEC (10-Q, 10-K), has real revenue, partnerships, or customers, and avoid stocks that only generate buzz through press releases with no substance. Also, look for red flags like reverse stock splits, sudden price spikes on low volume, or frequent secondary offerings.

Is it better to invest in one low-priced AI stock or build a basket?

In this speculative space, diversification is often smarter. Building a small basket of sub-$10 AI stocks can help reduce the impact of any single company’s failure, while still allowing you to benefit from outsized winners. Allocate small amounts and rebalance based on performance and updated fundamentals.

What role does insider ownership play when evaluating small-cap AI stocks?

Insider ownership can be a strong signal of conviction—if executives and directors own meaningful stakes, they’re financially aligned with shareholders. Look for consistent insider buying (not just one-off purchases) and avoid companies where leadership regularly sells large blocks during rallies. It’s not a guarantee, but it adds a layer of credibility.