The global artificial intelligence (AI) market is on a trajectory to reach an impressive $826 billion by 2030, growing at a compound annual growth rate of 28.46% from 2024 to 2030. This growth is significantly influenced by the technology sector's performance, with the Nasdaq-100 Technology Sector index experiencing a 69% surge since the beginning of 2023, largely due to AI advancements. Within this booming market, four stocks priced under $5 are emerging as noteworthy opportunities for investors aiming to tap into the AI sector's potential.
Iveda Solutions, Inc. (NASDAQ: IVDA) is revolutionizing the smart city and video surveillance industry with its cloud-based AI technology. The introduction of the IvedaAI Cloud Subscription service has made advanced features like facial recognition and intrusion detection accessible to a broader audience at a monthly price of $99.99. With the global AI-enhanced surveillance market expected to hit $55.22 billion by 2030, Iveda's strategic partnerships, such as with the Arab Organization for Industrialization in Egypt, position it as a key player in the development of smart cities.
SoundHound AI (Nasdaq: SOUN) is leading the conversational AI space, offering innovative voice solutions across various sectors. The company's record revenue of $13.5 million in Q2 2024, marking a 54% increase from the previous year, alongside its acquisition of Amelia, underscores its growing influence and financial strength. SoundHound's ambitious revenue targets for 2024 and 2025 reflect its confidence in sustaining this growth trajectory.
BigBear.ai (NYSE: BBAI) specializes in AI-driven decision intelligence, with applications in national security and supply chain management. Despite facing some challenges, the company's involvement in significant contracts, including a $2.4 billion agreement with the FAA, highlights its critical role in delivering advanced IT solutions and emerging technologies.
POET Technologies Inc. (NASDAQ: POET) is making strides in the development of high-speed optical modules essential for AI and hyperscale data centers. Its innovative POET Optical Interposer platform is set to reduce costs and power consumption while improving performance, marking POET as a significant contributor to the AI infrastructure landscape.
These companies exemplify the diverse applications of AI across industries and the potential for growth within the sector. As the AI market continues to expand, these under-$5 stocks offer investors a unique opportunity to participate in the AI revolution.
