What are AI stocks? 

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AI stocks are shares of companies involved in developing, utilizing, or benefiting from artificial intelligence (AI) technologies. These companies can be involved in creating AI software, building AI hardware (like chips), or applying AI to industries such as healthcare, finance, and data centers.

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1. Rekor Systems Inc (REKR)

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• Market Cap: 85.55M
• Current Price: $0.91
• Revenue Growth (Y/Y): 15.65%
• Earnings Growth (Y/Y): -19.69%
• EBITDA: -33.49% 
• Net Profit Margin: -3.49%
• Why It’s a Top Pick: ParaZero Technologies specializes in drone safety systems, leveraging AI to enhance crash prevention and precision navigation. With increasing demand for drone technology in logistics, defense, and surveillance, the company is poised for growth in this emerging sector.

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2. SoundHound AI, Inc. (SOUN)

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• Market Cap: 2.34B
• Current Price: $6.51
• Revenue Growth (Y/Y): 89.13%
• Earnings Growth (Y/Y): ‪‪-7.69%‬‬
• EBITDA: -112.56%
• Net Profit Margin: 43.06%
• Why It’s a Top Pick: SoundHound AI is a leader in conversational AI, powering voice recognition and natural language processing technologies. Its applications in automotive and consumer electronics are driving strong adoption and revenue growth, positioning the company as a key player in the voice AI market.

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‍3. WiSA Technologies, Inc. (WISA)

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• Market Cap: 11.86M
• Current Price: $2.11
• Revenue Growth (Y/Y): 52.41%‬‬
• Earnings Growth (Y/Y): ‪‪16.67%
• EBITDA: 17.24%
• Net Profit Margin: 45.33%
• Why It’s a Top Pick: WiSA Technologies is a leader in wireless audio technology, utilizing AI to enhance sound quality and connectivity. With applications in smart homes and entertainment systems, the company is well-positioned to benefit from the surge in AI-powered consumer electronics.

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‍4. Dell Technologies Inc (DELL)

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• Market Cap: 95.40B
• Current Price: $135.90
• Revenue Growth (Y/Y):  +8.76%
• Earnings Growth (Y/Y): +3.25%
• Dividend Yield (TTM): 1.31%
• P/E Ratio: 25.03
• EBITDA: 2.45B
• Net Profit Margin (Y/Y): 68.16%
• Why It’s a Top Pick: Dell Technologies is a key player in the AI infrastructure market. The company's cutting-edge servers, storage solutions, and data center systems are essential for training and deploying AI models. With a strong focus on edge computing and hybrid cloud solutions, Dell has been capitalizing on the increasing demand for AI-driven infrastructure. 

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Its partnerships with NVIDIA and VMware further bolster its positioning as a critical provider of AI hardware and software solutions. Additionally, its steady revenue and earnings growth, alongside an attractive dividend yield, make Dell a compelling pick for investors seeking exposure to the AI boom while maintaining stability.While not a cheap AI stock per se, options on the stock are very liquid and can be purchased cheaply.

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‍5. Immatics N.V. (IMTX)

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• Market Cap: 1.06B
• Current Price: $7.81
• Revenue Growth (Y/Y): -16.10%
• Earnings Growth (Y/Y): 26.77%
• EBITDA (Y/Y): -88.30%
• Net Profit Margin: 12.72%
• Why It’s a Top Pick: Immatics uses AI for developing cancer immunotherapies. Its innovative platform, XCUBE, leverages AI to accelerate drug discovery, making it a solid AI play in the biotech sector.

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Advantages of Investing in Cheap AI Stocks:

• Broad Applications: AI’s potential spans across industries such as healthcare, finance, and tech, offering a diverse investment opportunity.
• Rapid Innovation: AI technology is advancing quickly, creating potential for breakthrough successes.
• Strong Investor Interest: AI remains one of the hottest trends in the market, drawing significant attention from institutional and retail investors alike.

Disadvantages of Investing in Cheap AI Stocks:

• Volatility: Many AI stocks are subject to high volatility due to investor speculation and market hype.
• Uncertainty: Despite AI’s promise, it's a relatively new industry, and many companies are unproven.
• Regulatory Risk: As AI develops, there are growing concerns over its ethical implications, which may lead to increased regulation.

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For investors looking to gain exposure to AI without paying a premium, these companies offer a mix of growth potential and affordability. However, it's important to weigh the risks, as the AI sector is still developing, and some companies may face significant volatility. The long-term outlook for AI remains strong, making these stocks an interesting addition to a diversified portfolio.

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‍How do I choose the best AI stocks to invest in? 

Look for companies that have a strong market presence in AI-related fields, like chip manufacturing (e.g., NVIDIA), cloud computing, or those applying AI to solve industry-specific problems (e.g., healthcare, automotive). Also, consider financial health, valuation ratios like price-to-earnings (P/E), and growth prospects.

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‍Why should I consider cheap AI stocks? 

Cheap AI stocks offer an affordable entry into a rapidly growing industry. While they may be lower in price, they often have significant growth potential, especially as AI adoption continues to expand globally.

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‍What are the risks of investing in AI stocks? 

AI stocks can be volatile due to market hype, regulatory risks, surprising events, and unproven technology in certain sectors. Companies with high valuations may also face corrections if growth doesn’t meet market expectations. If you invest in AI stocks, it’s important to monitor for material events to avoid missing news or announcements that can significantly affect your investments.

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‍Can AI stocks provide long-term growth? 

Yes, AI has transformative potential across numerous industries. Companies involved in AI are positioned to benefit from increased adoption of technology in areas like autonomous vehicles, healthcare, finance, and more. This makes AI stocks attractive for long-term growth, but patience is needed as the industry evolves.

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‍Are AI stocks only in the tech sector? 

No. AI impacts many sectors beyond traditional tech companies, including healthcare, manufacturing, finance, and even power management. Companies that support AI infrastructure, like data centers and power systems, are also considered AI stocks.

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‍Is investing in AI stocks suitable for beginners? 

AI stocks can be volatile and risky, which may not be suitable for every beginner investor. However, diversifying across multiple AI-related industries and combining investments in large, established companies can lower the risk. Other Ways to Profit from AI StocksUsing event-driven trading to find the best entry and exit points provides many benefits long-term stock holding cannot:

• Rapid gains
• Outsized gains
• Access to your capital
• Reduced exposure to macroeconomic events
• Reduced exposure to competition
• A consistent, repeatable strategy

‍Event-driven trading identifies stocks being catalyzed by events. This enables traders to use AI stock trading to identify stock set to move higher quickly. For most of the year, stocks stay in a trading range. When events happen, share prices can move 20%, 50%, even 100% in just a short time, enabling investors to capitalize on these rapid movements. Find the Best Investments 1,800 Times Faster With LevelFields AI

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