The bull market in artificial intelligence is just getting started. In fact, with the boom only set to accelerate, we may be looking at a $1.81 trillion opportunity by 2030, says Grand View Research. This can create a big opportunity for this list of AI stocks under $10.
AI has reshaped just about everything around us, and corporate America is racing to embrace it. For example, Microsoft (NASDAQ:MSFT) just announced a $30 per month subscription for the use of generative AI with Microsoft 365. Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) announced it is exploring AI tools for journalists. Adobe is using generative AI to boost its growth. South Korea’s SK Hynix says AI demand helped it narrow a recent loss.
Even Goldman Sachs just said, “As companies adopt AI technology, both productivity and corporate profits should rise enough to drive the stock market up as little as 5% from current levels or as much as 14%, which would send the [Standards and Practices 500] to record highs at 4,884.”
However, this is just the start. While you can always invest in Microsoft, Nvidia, and Amazon at current prices, there are other hidden gems you can pick up on the cheap – especially among these top AI stocks under $10.
Lantern Pharma Inc. (LTRN)
With a market cap of slightly more than $50 million, be cautious with Lantern Pharma (NASDAQ:LTRN). However, you should also realize it could potentially be a game-changer in the fight against cancer with AI. With the help of machine learning, AI and advanced genomics, its platform can scan billions of data points. All of this is in an effort to help identify compounds that could help cancer patients.
With early-stage discovery and development, the traditional approach can take three to five years, and between $10 million and $50 million. With Lantern, the process can be as low as two years, with $1 million to $5 million in costs. Even better, with the assistance of its AI Platform, RADR, the company created LP-184 for solid tumors and just received US FDA clearance to begin testing in Phase 1 trials.
“The cancer indications being pursued for LP-184 are estimated to have an annual market potential of $11-13 billion; $6-7 billion for solid tumors and $5-6 billion for brain and CNS [central nervous system] cancers,” added the company.
Predictive Oncology (POAI)
The last time I mentioned Predictive Oncology (NASDAQ:POAI), it traded at $4.35 on June 27. Today, after testing a high of $7.12, it’s rebounding from support around $5.80. From here, I’d like to see it eventually reach $10 per share.
As I noted in late June, With its PEDAL platform, the company can “efficiently challenge a compound to demonstrate drug response within a set of heterogeneous tumor samples representing what the compound would encounter in a clinical trial. Thus, providing a leading indicator of clinical performance,” as noted by the company’s Chief Business Officer, Pamela Bush, Ph.D., MBA, in a recent press release.
While the company conducted a 1:20 reverse stock split earlier this year, it did so to remain in compliance with the NASDAQ listing requirements. It also appears to be in better shape, even though it’s not yet profitable. Still, I think it’s worth the risk with its advancements.
Rekor Systems (REKR)
You should also consider Rekor Systems (NASDAQ:REKR), a $3 company that’s leveraging AI and machine learning to identify infrastructure concerns. It’s also using AI for Roadway Intelligence to help reduce uninsured driving. In Oklahoma, for example, the company helped reduce uninsured motorists by 100,000 to date.
The company expects for its revenue to increase 110% to $8 million in its second quarter. Plus, as noted by Seeking Alpha, “The company says it is experiencing a substantial increase of more than 30% compared to its Q1 2023 revenue. Such outstanding financial results could showcase the company’s strong momentum and successful execution of its business strategies.”
Analysts at Northland Securities like the stock, raising their price target to $3.75 from $2.50.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
