Artificial intelligence is transforming industries and creating enormous growth opportunities. While large-cap tech stocks dominate the AI landscape, small-cap companies also offer huge upside potential at reasonable valuations.
In this article, I’ll highlight 5 cheap AI stocks that are poised for explosive growth in 2024 and beyond:
Nerdy offers online tutoring and additional educational resources for K-12 and college students. They use AI algorithms to analyze students’ strengths and weaknesses, then personalize tutoring sessions and study materials accordingly.
Given the pressures on our education system, demand for additional learning is likely to increase. Nerdy makes quality tutoring accessible and affordable through technology.
The stock is currently trading around $4 and is up 80% year to date. Although not yet profitable, Nerdy is rapidly growing into a massive addressable market. As adoption increases, profitability should follow.
AppLovin offers software tools to help mobile app developers market, monetize and analyze their apps. Their AI-powered data analytics and personalized ad targeting generate higher returns on marketing spend.
The mobile app ecosystem continues to grow exponentially. AppLovin is well-positioned to capitalize as a provider of tools for developers.
Trading at $26, AppLovin stock has soared 140% in 2022 on 78% revenue growth. Profitability improves as they scale. There remains huge room for growth in the $300 billion mobile app market.
SoundHound provides voice-enabled AI products that enable users to interact with devices and systems using natural language. Their technology makes it easier to access information and control devices by voice.
With the rise of voice assistants and the Internet of Things, SoundHound’s capabilities will become increasingly critical. They have partnered with major brands to expand adoption.
Up 98% year to date, SoundHound is trading around $3.80 per share. The voice AI market is expected to grow from $7 billion to more than $27 billion by 2028. SoundHound’s partnerships position it well to ride this wave.
BigBear.ai offers AI-powered analytics and machine learning solutions for decision support. They help organizations process and analyze complex data to gain actionable insights and improve efficiency.
With more data being generated than ever before, BigBear’s expertise in analytics, predictive modeling and pattern recognition provides tremendous value. Tailored AI solutions give customers an advantage.
Trading at $2.21, BBAI is up 208% in 2022 thanks to 61% revenue growth. Government and commercial demand for AI analytics is increasing. BigBear is ready to seize this opportunity.
Innodata provides data engineering, management and analysis services leveraging AI capabilities. They help businesses leverage, analyze and learn from data to accelerate digital transformation.
Their expertise in managing and processing large unstructured data sets, combined with AI data analysis, enables smarter decisions and improved operational efficiencies.
Currently trading around $10.78, INOD stock has soared 250% this year as demand for data analytics booms. With a market cap of less than $300 million, Innodata has considerable room for expansion as companies seek AI-powered solutions.
Ultimately, AI will revolutionize almost every industry in the coming decade. These 5 little-known actions offer affordable access to the transformative potential of AI. For investors with a high time horizon and risk tolerance, small-cap AI stocks are worth taking a close look in 2024.
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