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The best AI stock to buy under $10?

The best AI stock to buy under ?
The best AI stock to buy under ?

We recently published a list of The 10 best artificial intelligence stocks to buy for under $10. In this article, we will look at how Clarivate Plc (NYSE:CLVT) compares to other artificial intelligence stocks. You can also check out the 20 most used artificial intelligence (AI) platforms in 2024 here.

Artificial Intelligence (AI) is expected to be one of the key drivers of transformation and competitive advantage in the rapidly changing economy. The AI ​​industry has experienced strong growth, as evidenced by the doubling of global funding to $66.8 billion in 2021. In addition, a record number of 65 AI companies reached valuations of over $1 billion in 2021, representing a 442% increase from the previous year. Every year we see greater adoption of AI solutions by businesses and governments worldwide.

In 2022, the global artificial intelligence market reached USD 454.1 billion. By 2032, the market is expected to reach approximately USD 2,575.2 billion. This growth represents a compound annual growth rate (CAGR) of 19% from 2023 to 2032. In 2022, North America led the market with the largest share. This was mainly due to the high demand for advanced hardware and software products that automate tasks in various industries. In addition, supportive government policies to promote AI adoption have also contributed significantly to the market growth in the region.

Specifically, the US artificial intelligence market was valued at $103.7 billion in 2022. It is forecast to grow to approximately $594 billion by 2032, with a compound annual growth rate of 19.1% between 2023 and 2032.

According to a report by PwC, AI could contribute about $15.7 trillion to the global economy by 2030, surpassing the current combined output of China and India. This contribution is expected to be split into $6.6 trillion from increased productivity and $9.1 trillion from effects related to increased consumption.

In the short term, AI is likely to deliver the greatest economic benefits through productivity improvements, including automating routine tasks, improving employee skills, and allowing employees to focus on higher-value work. Improvements in labor productivity are expected to account for over 55% of all GDP gains from AI between 2017 and 2030.

Over time, GDP growth from product improvements and consumption, driven by AI, will outpace productivity gains. By 2030, 58% of all GDP growth is expected to come from consumption effects. Consumers will be particularly attracted to higher-quality and more personalized products and services.

According to a new report from Bloomberg Intelligence (BI), the generative AI market, driven by consumer programs such as Google’s Bard and OpenAI’s ChatGPT, is set to grow significantly. It is expected to grow from a market size of $40 billion in 2022 to $1.3 trillion over the next decade. The increasing demand for generative AI products is expected to generate about $280 billion in new software revenue. This growth will be driven by specialized assistants and copilots that improve coding efficiency.

With the outlook for the AI ​​industry looking bright, let’s take a look at the best AI stocks to buy for under $10.

Our methodology

To shortlist the best artificial intelligence stocks under $10, we drew on Insider Monkey’s database of 920 hedge funds (as of Q1 2024) to analyze hedge fund sentiment for each stock. We selected the artificial intelligence stocks with the highest number of hedge fund investors. Why do we care about the stocks hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points (More details can be found here).

A state-of-the-art computer lab full of engineers working on new analytical technologies.

Clarivate Plc (NYSE:CLVT)

Number of hedge fund owners: 28

Share price: $2.47

Clarivate Plc (NYSE:CLVT) is a leading global information services provider founded in 1864 and headquartered in London, UK. The company provides a comprehensive range of information tools and services that enable organizations across a wide range of industries to make informed decisions.

Clarivate Plc’s (NYSE:CLVT) first quarter 2024 results showed continued profitability, with adjusted net income remaining positive at $103.5 million. In addition, the company’s focus on recurring revenue streams is paying off, as subscription revenue posted positive year-over-year growth of 2.4%.

In addition, Clarivate Plc (NYSE:CLVT) has a healthy cash flow. Looking ahead, the company is positioned for continued success through its focus on growing its subscriber base and efficiently managing working capital.

Clarivate Plc (NYSE:CLVT) has received a consensus rating of Moderate Buy. The average analyst price target for the stock is $6, suggesting decent upside potential. Of the 920 hedge funds tracked by Insider Monkey at the end of the first quarter of 2024, 28 funds reported owning a stake in Clarivate Plc (NYSE:CLVT).

Total CLVT 1st place on our list of the best artificial intelligence stocks to buy under $10. You can visit The 10 best artificial intelligence stocks to buy for under $10 to see the other artificial intelligence stocks that are on hedge funds’ radar. While we recognize CLVT’s potential as an investment, we believe AI stocks promise higher returns and do so in a shorter time frame. If you’re looking for an AI stock that shows more promise than CLVT but trades at less than 5x earnings, read our report on the cheapest AI stock.

READ MORE: Analyst sees a new $25 billion ‘opportunity’ for NVIDIA and Jim Cramer recommends these 10 stocks in June.

Disclosure: None. This article was originally published on Insider Monkey.