Artificial intelligence has the potential to transform almost every aspect of our day-to-day lives over the next several decades. With this in mind, investors are looking for an affordable way to enter this groundbreaking market. Keep reading for our economical picks for the best artificial intelligence stocks under $1 to watch out for.
According to a report by Grand View Research, the worldwide artificial intelligence market was valued at $39.9 billion in 2019 and is expected to grow at a combined annual growth rate (CAGR) of 42.2 percent from 2020 to 2027.
Major tech companies are taking advantage of this growth and are diving deeper into the pool of artificial intelligence.
Good AI stocks will increase in value, and investing in artificial intelligence equities now could lead to excellent returns in the long run.
So when it comes to investing in the stock market, every growth investor should explore the artificial intelligence sector.
AI technology is utilized by large corporations, with stock prices ranging from $100 to more than $2000, making it too much risk per share for the average retail investor.
For long and short-term plays on the AI market, small-cap artificial intelligence penny stocks hold a lot of potential rewards.
The following penny stocks include AI stocks of companies producing chips for the AI market, big data and data analytics stocks, SaaS, and pure AI companies.
Best AI Stocks Under $1
Artificial Intelligence Technology Solutions Inc. (OTC: AITX)
Artificial Intelligence Technology Solutions is a U.S.-based artificial intelligence solution provider for mobile electronic services, including AI and robotics solutions.
This company offers after-market upgrades for electronics, audio, and video for boats, automobiles, and recreational vehicles.
It works through three subsidiaries to deliver its robotic solutions to businesses.
Furthermore, Artificial Intelligence Technology Solutions creates software products that empower businesses to reach new heights.
AITX financials show a favorable trend, as revenue and net income are steadily increasing.
Share prices should catch up to this forward momentum in the near future.
CooTek Inc. (NYSE: CTK)
CooTek provides a series of scenario-based apps that use AI to interact with the user in different ways.
Hi Shou is health software that features exercise courses, monitors water consumption, and recipes to lose weight.
TouchPal Smart Input is an AI-based input method for mobile devices that offers tools like spell check and word prediction in multiple languages.
This app alone has over 100 million users to date.
The company also has reading software and several online games.
On the financial side of things, CooTek’s share price is a bit down at the moment following a miss in revenue goals.
CooTek’s products continue to gain interest and are growing its user base.
As it becomes more popular, it only makes sense for share prices to climb.
Predictive Oncology (NASDAQ: POAI)
Predictive Oncology is a Minnesota-based data and AI-driven discovery services company providing predictive models of tumor drug response.
One of the subsidiaries of Predictive Oncology, TumorGenesis, utilizes specific and highly differentiated methods to grow ovarian cancer cells.
The company also manages an extensive database of 98 different types of ovarian cancer cells.
These AI tools can identify various types of tumor cells and then use the information to create tailored treatments for patients.
The company’s revolutionary application of AI could be the next step in cancer treatment.
Share prices have seen ups and downs throughout 2021 but are currently up 33% from last year.
The stock has been dancing around the $1 mark of late and will likely disappear from this list shortly.
LAIX (NYSE: LAIX)
LAIX is a Chinese-based artificial intelligence venture that uses an AI teacher to teach students English.
This AI teacher listens and understands the students, and it can interact with and grade the performance of its users after evaluation.
Founded in 2013, LAIX has used artificial intelligence to improve its technology over the years.
Forbes China mentioned LAIX as one of the most innovative companies launching in 2018.
The company has seen an overall downward share price trend over the year.
LAIX’s AI applications could be beneficial in a post-COVID world that’s still adjusting to the shift to online schooling.
Even after we completely transition back to in-person classes, the service still has many fascinating avenues to explore in the education space.
LAIX is in a unique space with its software that has limitless potential moving forward.
Inuvo Inc. (NYSEAMERICAN: INUV)
Inuvo is an American intelligent advertising tech firm.
The company uses its patented AI software IntentKey to align brand messaging with content for users to see.
IntentKey can mirror the way the human mind works to formulate ideas and emotions with people, places, and things.
Inuvo has already recorded several successful case studies on its website, showcasing just what its AI tech can do.
Third-quarter financials for Inuvo look good, with increases in revenue, net income, and earnings per share.
Share prices are up over 35% from last year’s numbers even though growth has stagnated of late.
We could very well be looking at the calm before Inuvo stock really takes off.
Powerbridge Technologies Co Ltd (NASDAQ: PBTS)
Powerbridge Technologies Co., Ltd. is a Chinese firm that provides corporate and government customers with software application and technology solutions and services.
The company creates and maintains cloud-based Powerbridge BaaS Services (blockchain-as-a-service) for all participants in the global commerce ecosystem.
Powerbridge System Platform and Powerbridge SaaS Platform are two of the company’s technological platforms.
This technology is used in transaction processing, blockchain logistics, transaction processing, insurance, loans, and more.
With a market cap of $38.45 million, Powerbridge will have some extra stability compared to lesser valued stocks.
Share prices have been over $1 in the past, but a slow summer has brought things down below this mark.
If Powerbridge can keep building up its systems, it should be able to reach previous highs in the near future.
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Should You Buy Artificial Intelligence Stocks?
Many retail investors are asking the same question, and the truth is that there’s no simple answer.
Whether you should buy artificial intelligence stock really depends on your investment goals and risk tolerance.
This is an emerging tech that’s beaming with potential, but many companies in their field still need to prove themselves.
Still, with the rising importance of artificial intelligence, it’s definitely worth your consideration — especially if you can grab some of the best stocks at an affordable price point.
Artificial intelligence stocks are rarer than you might imagine right now.
Although many tech companies are gravitating toward AI initiatives and machine learning, few public artificial intelligence stocks exist.
Even so, stocks under $1 can be a great launching point for new traders if the odds look good.
Day traders who crave volatility will find some at these low share prices.
What to Look for When Buying AI Penny Stocks
It might be challenging to figure out which ones to invest in, especially if you’re looking at several AI penny stocks at once.
Individual equities may be a good alternative for your portfolio, but there are certain things you should look for when purchasing AI stocks.
Check the Company’s Market
When keeping an eye out for AI stocks, you should check if the company is in a growing market.
Make sure that the market they are in is competitive.
Furthermore, focus on companies that are using artificial intelligence to improve products or gain a strategic edge.
Research the Company’s Stock History
When buying AI stocks, you should always check their history by looking at their stock chart.
If the company is publicly traded and listed, the stock chart will appear at the top of the search results.
This is an excellent place to start if you are looking for stocks specifically for their volatility.
Check for Stock Trends
When analyzing a stock chart, check for a significant period where the price drop has slowed or drifted.
Also, take note of the current price.
Then find out how it has fared in the past weeks, months, and years.
This method will help you to identify patterns for the given stock.
Look Out for Little Spikes
Little spikes that appear to be increasing with time may indicate a large accumulated stock supply, even if it has not yet been shown in the market.
If you notice these patterns start to develop, there is a strong possibility that the stock will take another hit in terms of price.
This step is essential in evaluating and predicting whether a stock price will rise again soon.
These are just a few things you should consider before deciding if you should buy artificial intelligence stocks.
Where to Buy Artificial Intelligence Penny Stocks Under $1
More and more investors are looking to AI penny stocks to diversify their portfolios, using them as an opportunity to earn solid gains in the short or long term.
However, many newcomers in the market for stocks valued at less than $1 are lost about where to find them.
This is understandable, as many stock screeners don’t even have an AI filter because the tech is so new.
If you’re interested in buying artificial intelligence stocks, check out some of these platforms.
eToro
eToro is a U.S.-licensed and regulated online broker with multiple licenses from other international bodies across the world.
The platform serves over 20 million traders globally and has been rated the best social and copy trading system provider.
It was first established in Tel Aviv, Israel, where the company is currently headquartered, before being established in many other countries.
Currently, eToro operates in the U.S. under SEC regulations and has licenses to operate in more than 100 countries worldwide.
eToro trades majorly in Tier 1 stocks ranging between $1 and $5.
Stash US Broker
Stash is a new school online broker that provides brokerage services to beginners in the U.S.
Like eToro, Stash offers Tier 1 stocks that are reliable.
Trading on the Stash US Broker platform enables users to start their trading careers by taking small steps and increasing the size of their trades as they gain confidence.
When purchasing penny stocks through the online trading platform, individuals are charged $1 in fees, higher than other competitors in the U.S.
Robinhood
Robinhood is a U.S.-regulated platform that offers commission-free brokerage services for stock trading, penny stocks, CFDs, options, and cryptos.
Unlike many brokers, the Robinhood platform abhors strict minimum deposit requirements making it easy for investors to deposit any amount of money they need to buy penny stocks in the US.
We have seen how artificial intelligence will take over the world in the next few decades, so buying AI penny stocks is a wise investment.
Artificial Intelligence Stocks: Final Thoughts
Artificial intelligence has remained a hot topic for a while now and will continue to make waves in years to come.
While the public markets have relatively few AI stocks to choose from, this will likely change when the space becomes more saturated with competing companies.
For now, $1 artificial intelligence stocks provide an affordable entry point into the industry.
The artificial intelligence sector’s rapid growth could be a profitable investment opportunity, and widespread adoption of this technology may come sooner than you think.
Noah Edis
Noah is a Canadian copywriter with interest in technology, AI, VR, and clean-tech. When he's not working, you'll likely find him playing sports or reading.