Affordable AI Stocks: 7 Picks Under $50

Summary

Highlights

• Discovering low-priced AI stocks with high return potential, perfect for those daring investors! 🚀
• MarketBeat's Chris Marot shares insights into seven under-$50 AI stocks with interesting prospects. 📊
• SoundHound AI struggles with competition but is still attractive due to its category leadership. 🤔
• Symbotic's growing partnership with Walmart suggests strong growth potential. 🛍️
• Unity Software aims to regain investor confidence as it positions itself for growth in gaming. 🎲
• Bentley Systems offers a unique 3D modeling approach for infrastructure, opening new possibilities. 🌉
• Digital Ocean carves out a niche helping small businesses in the cloud computing market. 🌐
• Lemonade innovates in the insurance industry, although external risks are present. 🔍
• Rekor Systems, though risky, signals massive upside in the autonomous tech sector. 🚀

Key Takeaways

• Explore AI Stocks: Chris Marot highlights seven exciting AI stocks under $50 with potential big returns in 2025! 📈
• Speculative Opportunities: Ideal for investors looking to take a risk for high rewards in today's volatile tech market. 🎢
• SoundHound AI: A leader in AI voice recognition with potential but facing competition and volatility. 🎤
• Symbotic & Walmart: A promising AI in robotics stock boosted by a major contract with Walmart. 🛒
• Unity Software: A comeback story in the gaming sector, poised to recover from recent missteps. 🎮
• Bentley Systems & Digital Twins: Innovating in infrastructure with 3D modeling technology. 🌆
• Digital Ocean: Targeting small to medium businesses in the competitive cloud platform arena. ☁️
• Lemonade: Leveraging AI in insurance, yet influenced by external factors like natural disasters. 🌪️
• Rekor Systems: A penny stock with big potential in AI-powered transportation solutions. 🚗

Overview

Chapters

• 00:00 - 00:30: Introduction to AI Stocks In the chapter 'Introduction to AI Stocks', Market feed analyst Chris Marot discusses seven AI stocks under $50 that have the potential for big returns this year. This approach is different from previous discussions on strong, steady, and well-known companies that offer reliable returns. These stock picks are more speculative, focusing on potentially higher but less certain returns.
• 00:30 - 01:00: Speculative Nature of Selected Stocks The chapter discusses speculative stocks, which are designed for investors seeking specific risk-reward ratios. It cautions that these stocks should not dominate one's portfolio but instead occupy a small segment where the investor has the patience to wait for potential returns. The chapter also addresses the common investor desire to invest early in the next big stock that might significantly increase in value.
• 01:00 - 01:30: Volatility and Risk Assessment The chapter titled 'Volatility and Risk Assessment' discusses the inherent risks and volatility associated with investing in the technology sector. As the year 2025 begins, there has been a notable sell-off in small tech stocks, highlighting the kind of swings investors need to be prepared for. The chapter emphasizes the importance of a long-term investment mindset when dealing with speculative tech stocks, acknowledging the potential for significant fluctuations in their stock prices.
• 01:30 - 03:00: First Stock Pick: SoundHound AI Chris discusses the first stock pick from a list of seven AI companies currently priced low but with strong potential. The focus is on SoundHound AI, which the channel has frequently covered. SoundHound AI is enhancing voice recognition capabilities using AI, making it possible for users to have genuine conversations with technology. The discussion aims to highlight SoundHound AI's innovative approach and its potential in the market.
• 03:00 - 05:00: Second Stock Pick: Symbotic The chapter discusses the stock of Symbotic, which had an impressive performance last year with a rise of approximately 600%. However, as of January 13th of the current year, the stock has already dropped about 28%. The chapter notes that some analysts believe the stock might fall further due to intense competition, with specific mention of McDonald's moving away from Symbotic.
• 05:00 - 06:30: Third Stock Pick: Unity Software The chapter discusses Unity Software as a third stock pick. The text touches upon a company named SoundHound that Unity might consider outsourcing to for its AI voice recognition needs. However, investors should be cautious as there are other companies in the competition and SoundHound has not yet turned profitable. Despite heavy short interest dragging the stock lower in early 2025, the chapter emphasizes the tremendous potential and leadership of SoundHound in its category.
• 06:30 - 08:00: Fourth Stock Pick: Bentley Systems The chapter discusses Bentley Systems as a fourth stock pick and highlights its significant advantages. The focus then shifts to investor speculation about SoundHound, which has already seen a 600% return. Analysts predict some downward pressure on SoundHound stock, a common occurrence for stocks that have previously surged swiftly. This pullback presents opportunities for investors searching for potential investments.
• 08:00 - 09:30: Fifth Stock Pick: Digital Ocean The chapter begins with a recommendation to consider investing in Sound Hound, with the suggestion to wait for the stock to stabilize before buying at a better price. The narrative then shifts to introducing another AI company pick, Symbotic, with the ticker symbol SYM. This company leverages AI in robotics warehousing and is noted for having potential growth by 2025.
• 09:30 - 11:30: Sixth Stock Pick: Lemonade The sixth stock pick discussed is Lemonade. A major point of discussion is that Walmart, the largest client, has decided to increase its business dealings with Symbotic. This move is expected to significantly impact earnings, with analysts predicting a potential 150% growth in earnings by 2025. The current stock price is noted as $24.38, and it is suggested as a good investment opportunity with promising returns this year.
• 11:30 - 14:00: Seventh Stock Pick: Rekor Systems The seventh stock pick discussed in this chapter is Rekor Systems. Analysts suggest that the stock could see a significant increase, reaching up to $398, which represents about a 63% return on investment. There is an indication that this target does not fully account for the positive developments involving Walmart, which could suggest even greater potential. Despite some analysts setting their target price slightly below the consensus, it remains notably above a 50% potential increase from the current stock value. Among all the stock picks listed, this one appears to be particularly promising.
• 14:00 - 15:00: Conclusion and Additional Resources This chapter provides insights into future investment trends, particularly focusing on stock performance in 2025. It highlights concerns regarding heavy short activity due to a high short interest rate of 39%, indicating potential overvaluation risks. The chapter advises investors to be vigilant about valuation perceptions. Additionally, it introduces Unity Software, symbolized by 'U', as a notable stock to watch, emphasizing its comeback potential after previous struggles, marking it as a significant pick for investors. Further elaboration on this topic continues in the next chapter.

Affordable AI Stocks: 7 Picks Under $50 Transcription

• 00:00 - 00:30 from strong and steady stock picks to some more speculative buys that could have some big returns our Market feed analyst Chris marot is here with seven AI stocks right now under $50 that could have some big returns for you this year oh Chris this is a lot different than what we talked about last week where we were talking about really big companies well-known stocks that are of course strong and steady going to provide those really reliable returns today's stock picks are very different right these are
• 00:30 - 01:00 stock ideas but these are speculative stocks and they're designed for a very specific investor who's looking for some very specific risk rewards here shouldn't take up all of your portfolio but for a specific small area of your portfolio that you have the ability to wait on these stocks to deliver these stocks may be very intriguing to you I think a lot of investors are looking to get in early on that next big stock that's just going to take off um but
• 01:00 - 01:30 what do you have to be prepared for if you're invested in these kind of stocks right I think investors are seeing that right now as we've started off 2025 and that is volatility some of the small Tech names have sold off sharply we'll all talk about that when we look at each stock but yeah we we've been seeing a sell-off in Tech that's the risk in this sector is you're going to see big swings in either direction you have to be prepared for that like I said it's a long-term mindset because these are specul stocks speculative or not we do
• 01:30 - 02:00 have a list of seven AI stocks that are price low right now that do have some strong potential largely because there's some pretty great ideas in these companies let's start out Chris with your first stock pick so the first one is one that we've talked about a lot on this channel it's SoundHound AI it's using AI to enhance voice recognition capabilities so it's the idea that it makes AI more of a tool that you can actually have a genuine conversation with it um St Sound Hound had a
• 02:00 - 02:30 tremendous year last year I think the stock was up some somewhere like 600% here's one that we've been talking about though stocks down about we're we're taping this on January 13th the Stock's already down about 28% for the year some analysts believe it might still have lower to fall issue here is um the company faces Fierce competition uh so for example McDonald's is pivoting away from it
• 02:30 - 03:00 sort of its homegrown AI voice recognition they're looking to Outsource that SoundHound is a name that is getting consideration for that but there's other companies that could be in the way so investors want to be careful there um stock has heavy short interest in it and SoundHound is not yet profitable these are all reasons that the stock is is dragging a little lower to start 2025 on the other side tremendous potential for this stock and sound is a leader in the category which
• 03:00 - 03:30 gives them a huge Advantage I think a lot of investors when they do that speculative buy that 600% return is what they're hoping to get have we already missed that on SoundHound or is there potential what are analysts saying about what the next year could hold for this company so they're saying that there could be some more downward pressure on the stock that's not abnormal for a stock that went up as far and as fast as soundtown did to see it pull back a little bit like this so investors that are looking
• 03:30 - 04:00 to get in on Sound Hound if they're not in on it already let the stock settle out a bit and then look to get in at a better price all right let's move on to your second pick of an AI company that's priced pretty low right now with some good potential in the future sure the pick here is symbotic uh ticker symbol is SYM so this company is they use AI in robotics warehousing and big story here as far as 2025 is concerned is their
• 04:00 - 04:30 largest client is Walmart and Walmart has increased their business that they're going to be doing with symbotic that's one of the reasons why analysts are saying the earnings for the stock could grow 150% in 2025 that's some good returns this year for sure uh where's the buying point right now so the stock is currently trading at $24.38
• 04:30 - 05:00 analysts actually are saying the stock could go to $398 so that's about a 63% return and that doesn't necessarily mean that they're factoring in the best news with the Walmart news so some analysts have the price a little bit lower than the consensus Target but it would still be well above 50% above where the stock is now of all the plays on this list this one looks like it's going to have the
• 05:00 - 05:30 most solid returns in 2025 investors will want to be concerned on this one because the short interest on the stock is still is about 39% so there is going to be some heavy short activity on the stock if if investors start perceiving that the stock is overvalued some good information to keep in mind when looking at this stock specifically let's move on to your third pick Chris okay so this one Unity software ticker symbol is you uh this is kind of a comeback kid story The stock had a rough uh stocks had a
• 05:30 - 06:00 rough 12 months it's down about 37.7% the company had some leadership changes they use AI software to help developers with gaming applications we all love those and it's a big industry you Unity made some missteps however analysts are a little bit more positive about where the company's going right now they have a price on it about $22.2 that's only about 2 and a half%
• 06:00 - 06:30 above its current price but that could change if the company can show that it can um that it can start delivering positive earnings or it can get closer to positive earnings in 2025 there's certainly a lot of demand in the gaming sector that's for sure there is there is let's move on to your fourth pick today Chris okay the fourth pick is um Bentley systems that's bsy as the ticker symbol this company does 3D mod in uh for
• 06:30 - 07:00 infrastructure applications uh so so think about building out virtual cities building out uh digital twins of existing environments and things like that and of course the AI play is in 2024 they've developed AI software to help create these modeling this is a stock that uh currently trades around $45 analy have it going to about $57
• 07:00 - 07:30 this year so that's a nice 26% upside one thing I've been actually failing to mention on this Bridget but I think it applies when you talk about a stock like Bentley is a lot of these stocks are are companies that uh they they started going public around 2021 and that means that they got caught up in the meme stock thing so like a stock like Bentley at its peak in 20 2021 it got up as high as
• 07:30 - 08:00 um almost $70 a share and it's come back sharply since then but I think investors have to weigh that and say things got a little frothy in 2021 for no reason so the 20 so the $70 price was probably an outlier and so you got to kind of take that into consideration when you think about where the stock where the fair price for the stock might be yeah Chris I think the returns that you said for this stock too are a little bit more realistic around that 20 to 30% return is a realistic expectation for investors rather than the 6 100% returns which are
• 08:00 - 08:30 definitely outliers and not more of an expected consistent return correct um let's move on to the next AI pick that has some more realistic uh returns coming this year as well the next pick and actually it's funny because it has about the same level of return as Bentley system does the company is digital ocean the ticker symbol here is docn they operate a cloud computing platform and it seems like everybody does that nowadays but the significance
• 08:30 - 09:00 for investors is digital ocean targets a um targets small and medium-sized companies and that's an area that some of the larger Cloud companies don't aren't able to service very efficiently that's where this company's business comes from that's the that's the potential upside it's also the potential risk some of these companies may not um may not be able to expand their capabilities as much as they'd like to
• 09:00 - 09:30 especially if interest rates stay a little bit higher however uh that doesn't seem to be a concern for analysts they're bullish on the stock again they believe there's about a 25 26% upside from the current level so digital ocean seems to be one that you might want to watch for yeah there's a lot of competition in the field like you said is the buyin point at this one pretty reasonable to get into as well I think so right now yeah it's the stock hasn't sold off tremendously in this
• 09:30 - 10:00 year it's been kind of chopping around so I think the the investors could look could start looking to take a speculative interest in the stock at this level let's move on to your sixth pick in our list of seven AI stocks under $50 right now yeah so this is one that it's down about 15% so far for the year and there's a reason for that the stock is lemonade uh ticker symbol is LM andd and for those that are not familiar with this this company is using AI in the insurance business started out in
• 10:00 - 10:30 auto insurance but it's also going into things like renters insurance and homeowners insurance and all of the different products and again it it it uses AI to facilitate the whole claims process makes it easier for um for people to file claims and also to price out their insurance and it it um has lowered premiums it's been especially popular with that Millennial that genz consumer reason why the stock is down right now I would have to imagine it has
• 10:30 - 11:00 a lot to do with what's going on in Los Angeles and people spinning forward what that's going to mean for the entire insurance industry however lemonade is still up about 85% over the last 12 months uh analysts are still saying there's about 7% upside to the stock that actually means that there was probably that this that they probably felt the stock was pretty heavily overbought going into the year so
• 11:00 - 11:30 investors may be looking at a pullback here before they get involved but this is a stock that's very intriguing because of the fact that they're using AI to help facilitate this claiming process and get things moving quickly so it's a great idea that's not only impacted by the AI market and what companies are willing to pay for this new AI technology but it's also impacted by factors like you said wildfires in California and all kinds of different
• 11:30 - 12:00 natural disasters and events that could impact this industry is that part of the hesitation on a company like this I think it's going to be uh I don't think it I don't think people would have maybe thought about that heading into 2025 but I think they're certainly going to be thinking about it moving forward and again this is one of those stocks just went public in 2021 it shot higher I think it got up to almost 70 some dollars a share um uh at one point so everybody loved the idea
• 12:00 - 12:30 when it came out people bought into that stocks Fallen obviously sharply since then it's that time where we're trying to find what the real price for the stock is going to be $30 seems like it might be a good price point but with everything going on in the industry investors may want to wait for this stock to come a little lower all right let's finish out your pick of seven AI stocks for the year so the last stock is recourse systems ticker symbol is r ekr
• 12:30 - 13:00 now of all the stocks that we're talking about this is um this actually falls into the penny stock category stock is only trading around a154 at the moment that's because it's down about 49% over the last 12 months but the stock is up 16% so far to start 2025 this is a company that uses AI to uh help with the uh public transportation so we're talking about AI powered roadway intelligence so we can imagine that with autonomous
• 13:00 - 13:30 technology becoming very intriguing as an investment angle this would sort of dovetail very nicely with that the Stock's not heavily covered by analysts I had to kind of move and look around to see who is covering it there are a couple of analysts that cover it right now it has a price target of $44.50 so that's a pretty massive upside to the stock over the next 12 months almost 200% this is one that again it's going
• 13:30 - 14:00 to be a highrisk but potentially High reward play for investors yeah this stock sounds a lot like the kind of speculated buy a lot of investors are looking for those really low buyin points that have the potential for those you know triple digigit returns all within a year absolutely oh Chris thank you so much for giving us seven AI stock picks under $50 right now if you are looking for more AI picks to look into in 2025 check out our free Special Report on marketbeat.com you can scan
• 14:00 - 14:30 the QR code or click the link in the description of this video this is another 10 Stock picks all in the AI industry that are expected to perform really well in 2025 thanks again for watching and as always happy investing [Music]