Artificial Intelligence isn’t just a buzzword—it’s the beating heart of today’s most explosive tech revolution. From real-time drone safety to smart city surveillance, AI is rapidly rewriting how we live, work, and invest. But what if you could get in early—before the big names dominate the space? That’s where AI stocks under $10 come in: speculative, volatile, but brimming with potential.
In this article, we define what makes a true AI stock—not just in name, but in core tech. We also lay out the high-risk nature of penny stocks and why due diligence is non-negotiable. This is not investment advice—it’s a deep-dive for those curious about emerging AI innovators.
We’ll list 10 AI-focused companies trading under $10 and zoom in on 5 that show standout potential. Expect real analysis, red flags, tech insights—and everything you need to navigate this volatile but exciting corner of the AI market.
Here are the 10 artificial intelligence stocks under $10 you should invest in 2025
| Ticker Symbol | Company Name | Price (approx) |
| NOTE | FiscalNote Holdings Inc. | ~$0.57–7 |
| MARK | Remark Holdings | ~$0.80 |
| REKR | Rekor Systems Inc. | $1.14 |
| WISA | WiSA Technologies | ~$1.37 |
| PRZO | ParaZero Technologies Ltd. | ~$1.91 |
| YRD | Yiren Digital Ltd. | $5.51 |
| RIOT | Riot Platforms, Inc. | $8.44 |
| PERI | Perion Network Ltd. | $9.22 |
| QUBT | Quantum Computing, Inc. | $9.95 |
| BAI | BigBear.ai | <$10 |
1. NOTE
When exploring artificial intelligence stocks in 2025, FiscalNote stands out with its bold, purpose-driven AI integrations in the policy and legal intelligence space.
What Makes FiscalNote Special?
- AI at the Core: Unlike traditional platforms, FiscalNote’s PolicyNote leverages AI to draft policies, track legislation, and forecast outcomes.
- Real-World Impact: Their AI helps professionals write and amend bills in real-time—saving both time and compliance risks.
- AI Copilots: These custom-built agents help clients handle geopolitical, regulatory, and legal risk without digging through mountains of documents.
This is not some hypothetical future; thousands of global clients already use these tools daily—from law firms to government agencies.
Why It’s Gaining Investor Attention
- Stable Model: With 92% of its revenue from subscriptions, the business runs on recurring cash flow.
- Strategic Focus: Post-divestitures, the company is leaner and now concentrating purely on its AI-first platforms.
- Strong Margins: A Q1 gross margin of 78.7% shows how scalable its software business is.
But Be Cautious
- Debt Risk: A high debt-to-equity ratio (1.77) raises red flags.
- Revenue Dip: ARR slipped from $94M to $88M due to asset sales.
- Penny Stock Volatility: Like many artificial intelligence stocks, this one carries risks tied to market swings and potential stock dilution.
Bottom Line: FiscalNote blends cutting-edge AI with a strong B2B SaaS model. For long-term believers in policy tech, this is one of the artificial intelligence stocks worth tracking closely in 2025.
2. MARK
Remark Holdings may not be the most talked-about name in tech, but its niche in artificial intelligence stocks is attracting fresh attention—especially in 2025.
What Does Remark Holdings Do with AI?
- Computer Vision at Scale: Their KanKan AI Platform processes over 1.2 million facial data points per second with 94.7% accuracy.
- Real-Time Video Analytics: The Smart Safety Platform 3.0 can detect weapons, smoke, or abnormal behavior in real time, not after the fact.
- Smart Surveillance: From facial recognition at airports to thermal screening in hospitals, their tech covers public safety, retail, and transportation.
These features power real-world deployments, like a $6M police tech contract in Rio de Janeiro and pilot programs across US cities.
Why Investors Are Watching Closely
- Diverse Revenue Streams: AI use cases span sectors—reducing reliance on a single market.
- Global Expansion Potential: From Sao Paulo to sanctuary cities in the U.S., their reach is growing.
- Tech Credibility: Consistently ranks among the top in facial recognition—especially in mask and wild scenarios.
But Investors Should Know the Risks
- Unstable Revenue: Quarterly revenue is inconsistent and highly contract-dependent.
- Profitability Concerns: The company is not yet profitable and hasn’t given a clear timeline.
- Penny Stock Volatility: At under $1, it’s highly volatile and sensitive to financing news.
Bottom Line: For those eyeing artificial intelligence stocks with real-world impact and video AI potential, Remark Holdings might be an under-the-radar player with long-term promise—but only if it can secure big contracts and improve financial stability.
3. REKR
When you think about artificial intelligence stocks with real-world impact, Rekor Systems brings a fresh and grounded use case—AI for roads, traffic, and city safety.
What Makes Rekor’s AI Special?
- Rekor One™ Platform: Combines AI, computer vision, and real-time data fusion to power smart city infrastructure.
- Rekor Scout: Detects license plates, vehicle types, colors, and locations—used in policing and tolling.
- Rekor Discover: Analyzes traffic patterns and detects congestion, helping cities make better planning decisions.
- Rekor Command: Predicts traffic incidents or unsafe zones, giving cities the power to act before problems occur.
The company doesn’t just monitor roads—it turns raw mobility data into decisions that save lives and cut congestion.
Why Investors Are Watching Rekor
- Fast-Growing Sector: With smart city spending soaring, demand for AI-driven traffic intelligence is only rising.
- Niche Focus: Unlike broader AI companies, Rekor targets a specific, underexplored space—urban mobility.
- First-Mover Advantage: Few companies offer full-stack AI for roadway intelligence like Rekor does.
What to Watch Out For
- Inconsistent Revenue: Revenue relies heavily on government contracts, which can be delayed or canceled.
- Financial Risks: Ongoing losses, limited cash runway, and uncertain path to profitability are major concerns.
- Penny Stock Volatility: Trading below $2, Rekor’s stock remains highly volatile and sensitive to news cycles.
Bottom Line: Rekor Systems stands out among artificial intelligence stocks for its clear use case in smart city infrastructure. But it’s a high-risk, high-reward pick that depends on contract wins and financial discipline.
4. WISA
WiSA Technologies, now rebranded as Datavault AI Inc., has made a bold leap from wireless audio to becoming a next-gen AI data platform. In a fast-changing tech world, this move positions it as one of the most unique names among emerging artificial intelligence stocks.
What Does Datavault AI Do with Artificial Intelligence?
- AI for Asset Monetization: Their cloud platform uses AI to visualize, value, and monetize assets—ideal for Web 3.0 markets like NIL licensing and virtual branding.
- Digital Twins: AI creates digital replicas of people and objects, secured by blockchain for safe data handling.
- Smart Automation: AI drives real-time analytics, ad tracking, and advanced marketing tools.
- ADIO® Acoustic Tech: Combines sound science and AI to enhance wireless audio, spatial experiences, and immersive environments.
Their AI made headlines at Super Bowl LIX by powering real-time public safety and marketing alerts—showcasing practical, live deployment.
What Sets Datavault AI Apart?
- New Market Reach: From fintech to healthcare and fashion, they target multiple industries.
- Forbes Recognition: Labeled as a “standout innovator” at CES 2025, building trust and visibility.
- Partnerships: Strong ties with Dolby and event producers help commercialize the tech faster.
Risks to Consider
- Execution Risk: Pivoting from audio to AI/data is complex and capital-intensive.
- Lack of Public Financials: Post-pivot data is scarce, making deep analysis difficult.
- Penny Stock Volatility: As with many artificial intelligence stocks, price swings and funding risks remain high.
Bottom Line: WiSA (now Datavault AI Inc.) is an ambitious bet among artificial intelligence stocks. If its pivot plays out well, it could be a disruptor in AI data monetization.
5. PRZO
Among the niche players reshaping the drone ecosystem, ParaZero Technologies brings something truly life-saving—AI that knows when and how to stop a crash before it happens.
How ParaZero Uses AI in Drone Safety
- Autonomous Parachute Deployment: Their system uses AI to detect critical failures in real-time and launch a parachute instantly to prevent crashes.
- Sensor Fusion + Machine Learning: The system reads data from gyroscopes and accelerometers, using AI to distinguish between normal turbulence and actual emergencies.
- Predictive Diagnostics: AI tools track system health and flag potential malfunctions early, enabling smarter maintenance decisions.
- Custom AI Integration: Solutions adapt to various drone models and manufacturers, creating flexible safety protocols from learned flight data.
This makes ParaZero a frontrunner in autonomous aerial safety, not just for drones, but also for urban air mobility systems.
Why ParaZero Is Attracting Investor Attention
- Growing Demand: Drone use is booming in defense, delivery, and agriculture—and regulators now demand stricter safety solutions.
- Recent Wins: Secured contracts with a U.S. Advanced Air Mobility firm and a global Tier-1 defense company.
- Tech Edge: One of the few companies offering AI-powered, real-time parachute deployment systems.
- First Mover Advantage: Positioned uniquely in a segment where automation is now a regulatory priority.
Key Risks to Watch
- Limited Revenue: Only small-scale purchase orders so far—no large recurring income.
- Tiny Market Cap: Around $6.7 million, making it highly volatile and thinly traded.
- Capital Needs: Scaling this tech will require new funding and continued execution.
Bottom Line: As one of the most specialized artificial intelligence stocks, ParaZero offers innovation with a real-world safety purpose. High risk, but with high-altitude potential.
Understanding AI Stocks Under $10
What Defines an “AI Stock” in the Penny Market?
Not every company labeled as “AI-powered” is genuinely leveraging artificial intelligence at its core. In the penny stock world—where valuations are low and marketing is often aggressive—this distinction becomes crucial for investors. So, how do you know if a company truly qualifies as an AI stock?
First, understand the three layers of AI involvement:
- Foundational AI companies are building core technologies—machine learning platforms, neural networks, AI chips, etc.
- Applied AI companies use those tools to solve specific problems—think facial recognition software, AI medical imaging, or autonomous drone safety.
- AI-enabled companies use AI as a tool but aren’t focused solely on AI. A logistics startup optimizing routes with AI may fall in this category.
In the penny stock arena, most companies claim AI-enabled status—but few actually fall into foundational or even applied AI. For a true AI stock, the technology must be central to its value proposition, not just an add-on.
Investors should be skeptical of buzzwords like “AI-driven” in marketing materials unless backed by actual R&D or products. Look for patents, AI-specific hires, partnerships with academic institutions, or use of AI APIs/models in a meaningful way. Just because a stock trades under $10 and mentions AI doesn’t mean it deserves your investment—it’s the depth of the AI integration that matters most.
Why Consider AI Penny Stocks? (Potential Benefits)
AI penny stocks come with serious risks, but for some investors, they also hold huge upside potential—if approached wisely. These stocks often represent early-stage innovation, and in a space like AI, where technology evolves rapidly, small firms can sometimes disrupt giants.
The most obvious benefit? Affordability. Buying AI stocks under $10 allows investors to diversify their portfolios without large upfront costs. A few hundred dollars can get you hundreds of shares—offering higher exposure if the company takes off. This doesn’t guarantee returns, but it opens the door to multi-bagger potential (stocks that return multiple times their purchase price).
Then there’s first-mover advantage. Smaller AI companies may focus on niche areas—AI in drones, personalized healthcare, cybersecurity automation—where larger firms aren’t yet dominant. If these niches explode, early entrants could see exponential growth.
Moreover, AI remains one of the most transformative forces in the global economy. From generative AI models like ChatGPT to AI chips, robotic automation, and smart manufacturing, the applications are everywhere. For investors, this means there’s no shortage of themes or sectors to explore through penny stocks.
That said, AI penny stocks are not for the faint of heart—they should only form a small part of a diversified, high-risk portfolio. But for those who understand the stakes, the upside could be rewarding.
The High Stakes: Risks of Investing in Penny AI Stocks
Investing in AI penny stocks isn’t just risky—it’s high-stakes speculation. While the low price may be tempting, these stocks often come with major red flags. Volatility is the biggest issue. Prices can swing wildly, gaining 50% in a day and losing it all the next. This is usually due to thin trading volume and speculative buying, not company fundamentals.
Liquidity issues compound this. When a stock is thinly traded, it’s hard to buy or sell without affecting the price. You may not get out of your position at the expected value, especially during market downturns.
Another big concern is lack of information and transparency. Many penny AI companies are not covered by analysts and often have weak investor relations. Their SEC filings (if public) may be irregular or filled with boilerplate language. Some don’t even generate revenue.
Add to this the dilution risk—companies frequently issue new shares to raise capital, reducing your ownership percentage. And let’s not forget about “pump and dump” schemes, where promoters artificially inflate stock prices and then sell off, leaving everyday investors holding the bag.
Lastly, AI is a highly competitive field with big players like NVIDIA, Google, and Microsoft dominating R&D. Small companies must prove unique value to survive—and thrive—in that arena.
Due Diligence Essentials for AI Penny Stocks
Investing in AI penny stocks demands more than optimism—it requires disciplined, hands-on due diligence. The first step? Read the financials. Many penny stocks operate at a loss, but you still want to assess their burn rate, cash on hand, and any major debts or liabilities.
Next, evaluate the management team. Look for experience in AI, past exits, or leadership at credible startups or institutions. A strong CEO or CTO can make a major difference in how the business scales.
Then, focus on the AI tech itself. Is it proprietary? Are there patents? How is it applied? If a company says it’s developing an AI cybersecurity platform, check whether it has real demos, client case studies, or pilot programs.
Equally important is understanding the market size and growth potential. A company focusing on AI in mental health diagnosis, for example, might be addressing a fast-growing yet underserved niche.
Also check for analyst reports, if available, and SEC filings for investor-friendly red flags like lawsuits, frequent share issuance, or sudden executive exits.
Lastly, always remember the golden rule of speculative investing: never invest more than you’re willing to lose. Diversification and proper risk management should be the bedrock of any penny stock strategy.
AI Market Trends to Watch in 2025
As you assess which AI penny stocks are worth your attention, keeping an eye on macro trends in AI is critical. In 2025, a few movements are poised to shape how these companies evolve—and whether they survive.
Generative AI remains a dominant force, with tools like ChatGPT and DALL·E making their way into real-world applications—from customer service to coding to legal briefs. Startups offering niche generative AI solutions could find demand in industries like media, healthcare, and law.
Edge AI is also on the rise—especially in drones, wearables, and IoT devices. These systems process data locally rather than relying on cloud infrastructure, saving time and improving privacy. If a penny stock is innovating in this space, particularly with hardware-software integration, it may be worth a look.
AI in Healthcare continues to show promise. Startups using AI for diagnostics, drug discovery, and patient monitoring could benefit from a healthcare system moving rapidly toward automation.
Cybersecurity and AI-driven fraud detection are two other major areas to watch. With rising digital threats, AI that detects anomalies in real-time is in high demand.
Lastly, regulatory developments around AI transparency, bias, and ethics may either throttle or accelerate innovation—depending on how prepared companies are.
Staying ahead of these trends helps identify not just what’s hot—but what’s viable long term.
Key Takeaways
The market for artificial intelligence stocks sits at the intersection of hype and high stakes. While most of these companies are still in their formative years, a few are laying down serious groundwork in generative AI, edge computing, and domain-specific applications like cybersecurity or medical diagnostics. That’s where real traction will come from—not just vague promises tied to AI buzzwords.
The next 12 to 18 months could act as a litmus test for these penny AI players. With AI regulation tightening and major tech firms consolidating the ecosystem, only those with unique tech IP or deep niche alignment will survive. Watch for M&A activity—small AI firms with solid models might become prime acquisition targets.
For investors, it’s less about betting on the next NVIDIA and more about identifying companies solving real-world problems using scalable AI solutions. Short-term volatility is inevitable, but long-term disruption is still on the table. Diversification, research, and skepticism remain essential.
As the AI wave matures, some of these under-$10 stocks might vanish—but others could quietly 10x in value. The challenge lies in separating future disruptors from empty shells. That’s where real insight—not hype—makes all the difference.
