As we move into 2024, the impact of artificial intelligence is expected to grow even further, following the significant strides made in 2023. With generative AI becoming increasingly familiar to employees over the past year, there is a greater readiness to grasp its role in today's work environment and embrace the opportunities it presents, as perBBC. AI holds potential to be a significant tool for workers with disabilities, which could drive positive change for all. Victor Santiago Pineda, director of the Inclusive Cities Lab at UC Berkeley, observed that many machine-learning tools developed to assist disabled workers could become more widely accessible, benefiting everyone. For instance, advancements like real-time, multilingual closed captioning from large language models can offer a broader range of information access to all individuals. Pineda commented:
"AI-powered assistive technologies have the potential to break down barriers and empower individuals with disabilities, fostering a sense of independence and inclusion."
Human-resource professionals are ready to use AI to create fairer hiring processes, although there are ongoing efforts to reduce bias in AI algorithms used in hiring and HR. Companies like Deloitte are using AI to retain talent, reallocating budgets and moving workers to more suitable roles to avoid layoffs, which could particularly benefit marginalized groups. The development of AI may also lead regulators to focus more on funding worker inclusion practices and ensuring workers' rights. While concerns about AI replacing jobs are valid, experts believe that workers will adapt and coexist with AI, especially those willing to learn and adapt. This may necessitate retraining and employer-supported learning opportunities. A 2023 survey by 'Jobs for the Future's Center for Artificial Intelligence & the Future of Work' highlighted the widespread acknowledgment of the need for new skills to thrive in an AI-driven workforce. However, as AI becomes more pervasive, there is a call for clear boundaries and regulations to safeguard the rights and occupations of a diverse workforce. Establishing a successful regulatory framework will require collaboration among corporations, governments, and academic researchers on a global scale.
According to a UBS report, the tech industry is at the early stages of a substantial growth phase, with the broader adoption of artificial intelligence set to turn it into a $225 billion market by 2027. This represents a significant increase from just $2.2 billion in 2022, indicating a compound annual growth rate of nearly 152%. The AI sector is expected to experience a corresponding 15-fold revenue surge, climbing from $18 billion in 2022 to $420 billion in 2027. This forecast reflects a 40% upward revision from UBS' previous estimates, which they now consider to have been too cautious. The anticipated surge in demand will be particularly beneficial for AI software, driving a 138% CAGR for the application sector. In 2024, the largest beneficiaries of increased spending will be hardware chips and GPUs used to train and run AI. This surge in spending is expected to provide a significant boost for semiconductor and platform companies, with industry revenues projected to increase from $15.8 billion to $165 billion. While some investors may have concerns about the growing regulatory focus on AI, implementing rules earlier rather than later is preferable to avoid restrictions on growth.
Paul Daugherty, Accenture chief technology and innovation officer, discussed his outlook for generative AI in 2024. He spoke with Ed Ludlow and Caroline Hyde on "Bloomberg Technology". Daugherty stated:
"Our role in this is, we help companies deploy technology solutions and generative AI clearly is the hot ticket right now. 95% of executives tell us they are going to increase the spending on technology as they go into 2024, and 97% of executives believe generative AI is transformative for the business that they are doing. Based on the research that we have done, we see that impacting 44% of all the working hours across industries globally, and that adds up to about $8 to $10 trillion of economic value over the next several years as companies adopt generative AI."
In this article, we discuss the best artificial intelligence stocks under $20, which include Sprinklr, Inc. (NYSE:CXM), Evolv Technologies Holdings, Inc. (NASDAQ:EVLV), and Nerdy, Inc. (NYSE:NRDY).
Our Methodology
For this article, we used a screener to identify artificial intelligence stocks under $20, and then selected the following stocks based on hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey's database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund investors in each firm. Hedge funds' top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
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A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.
Best Artificial Intelligence Stocks Under $20 According To Hedge Funds
Lantern Pharma Inc. (NASDAQ:LTRN), a biotech firm in the clinical stage, uses artificial intelligence, machine learning, and genomic data to make drug development more efficient. Their AI platform RADR uses big data analytics and machine learning to analyze molecular data. Founded in 2013, the company is based in Dallas, Texas.
On November 30, shares of Lantern Pharma Inc. (NASDAQ:LTRN) surged up to 8% in premarket trading following the company's receipt of FDA Orphan Drug Designation for its lymphoma drug candidate.
According to Insider Monkeys' fourth quarter database, 4 hedge funds were bullish on Lantern Pharma Inc. (NASDAQ:LTRN), same as the preceding quarter. Clint Carlson's Carlson Capital is the largest shareholder of the firm, with 60,000 shares valued at $256,800.
In addition to Sprinklr, Inc. (NYSE:CXM), Evolv Technologies Holdings, Inc. (NASDAQ:EVLV), and Nerdy, Inc. (NYSE:NRDY), Lantern Pharma Inc. (NASDAQ:LTRN) is one of the best AI stocks under $20.
Innodata Inc. (NASDAQ:INOD) is a global data engineering company that operates in the United States, the United Kingdom, Canada, the Netherlands, internationally. The company is divided into three segments – Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment offers AI data preparation services, collects or creates training data, annotates training data, and trains AI algorithms for its customers. Additionally, it provides AI model deployment and integration services. Innodata Inc. (NASDAQ:INOD) is one of the best AI stocks. On February 22, Innodata Inc. (NASDAQ:INOD) announced a Q4 GAAP EPS of $0.05 and a revenue of $26.11 million.
According to Insider Monkeys' fourth quarter database, 7 hedge funds were bullish on Innodata Inc. (NASDAQ:INOD), up from 5 funds in the last quarter. Josh Goldberg's G2 Investment Partners Management held the largest position in the company, with 125,000 shares worth $1.02 million.
Nokia Oyj (NYSE:NOK) offers mobile, fixed, and cloud network solutions globally, operating across four segments – Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. The company emphasizes responsible AI practices, providing AI solutions that cover core network operations and security. Ranked among the best AI stocks, Nokia Oyj (NYSE:NOK)'s offerings are the AVA AI & Analytics software solutions, which have won awards and are cloud-based, allowing for flexibility in deployment and enabling the monetization of network investments.
On February 14, Nokia Oyj (NYSE:NOK) introduced a new AI-driven tool designed for industrial workers. This tool generates messages that include real-time data warnings about malfunctioning machinery and suggestions to improve factory productivity.
According to Insider Monkeys' fourth quarter database, 11 hedge funds were bullish on Nokia Oyj (NYSE:NOK), in contrast to the previous quarter when 17 funds had invested in the stock. Richard S. Pzena's Pzena Investment Management is the biggest stakeholder of the firm, with 52.3 million shares worth $179 million.
Artisan International Value Fund made the following comment about Nokia Oyj (NYSE:NOK) in its second quarter 2023 investor letter:
"Nokia Oyj (NYSE:NOK) is the world's third-largest provider of telecommunications equipment. The company sells its products to service providers, such as AT&T and Vodaphone. While we have held the stock, new management has simultaneously improved competitiveness and reduced costs—a remarkable achievement that has resulted in improved growth and profitability. Despite that, the share price has declined, and the valuation multiple has shrunk below 10X forward earnings. The reason is that telecommunications operators are cutting back on investment. Higher interest rates, inflation and competition are eating into customer cash flows, resulting in less capital spending. For now, Nokia will experience reduced demand. At some point, the ever-increasing need for wire and wireless bandwidth will force service providers to increase investment. In addition, Nokia's market share is improving due to geopolitical changes and improved market competitiveness. The share price declined by 15% during the quarter."
FiscalNote Holdings, Inc. (NYSE:NOTE) is one of the best AI stocks and functions as a technology company that merges artificial intelligence, machine learning, and other technological tools with analytics, workflow aids, and expert research. Through its range of public policy and issues management products, FiscalNote Holdings, Inc. (NYSE:NOTE) provides intelligence to manage workflows, advocacy efforts, and relationships with constituents.
On November 20, FiscalNote Holdings, Inc. (NYSE:NOTE) saw a 26% increase following news that the company's CEO had a meeting with the board to discuss a possible takeover offer.
According to Insider Monkeys' fourth quarter database, 11 hedge funds were bullish on FiscalNote Holdings, Inc. (NYSE:NOTE), compared to 13 funds in the previous quarter.
Placed 7th among our list of the best AI stocks, Rekor Systems, Inc. (NASDAQ:REKR) is a technology company that offers intelligent infrastructure solutions for transportation management, public safety, and urban mobility markets worldwide. They utilize artificial intelligence, machine learning, and comprehensive data to support smart mobility infrastructure. The company was founded in 2017 and is headquartered in Columbia, Maryland.
On February 26, Rekor Systems, Inc. (NASDAQ:REKR) declared its plan to redeem all $12.5 million of its existing senior secured notes ahead of schedule. The redemption of these notes was set to take place on March 4.
According to Insider Monkeys' fourth quarter database, 12 hedge funds were bullish on Rekor Systems, Inc. (NASDAQ:REKR), an increase from 9 funds in the prior quarter.
Here is what Evermore Global Advisors has to say about Rekor Systems, Inc. (NASDAQ:REKR) in its Q2 2021 investor letter:
"Rekor Systems Inc. (REKR US). In February 2021,the Fund participated in a primary offering of shares in Rekor, a US-based technology company focused on vehicle identification systems sold to government entities. Shares proceeded to nearly double in short order, and we sold the position in mid-April for a sizable gain. When markets hand you a gift, sometimes it's best to ring the cash register."
SoundHound AI, Inc. (NASDAQ:SOUN) creates distinct voice artificial intelligence solutions for businesses in automotive, TV, IoT, and customer service sectors. These solutions help deliver top-notch conversational experiences to customers. Established in 2005, SoundHound AI, Inc. (NASDAQ:SOUN) is based in Santa Clara, California.
On February 29, SoundHound AI, Inc. (NASDAQ:SOUN) announced a Q4 GAAP EPS of -$0.07 and a revenue of $17.15 million, but they fell short of Wall Street estimates by $0.01 and $0.6 million, respectively.
According to Insider Monkeys' fourth quarter database, 13 hedge funds were bullish on SoundHound AI, Inc. (NASDAQ:SOUN), up from 10 in the preceding quarter.
Like Sprinklr, Inc. (NYSE:CXM), Evolv Technologies Holdings, Inc. (NASDAQ:EVLV), and Nerdy, Inc. (NYSE:NRDY), SoundHound AI, Inc. (NASDAQ:SOUN) is one of the best AI stocks under $20.
