Artificial intelligence (AI) has become a major theme in investing. Many high-priced names dominate headlines. Yet, some AI stocks trade under $3. Those stocks attract small investors. They offer chances to gain exposure without spending a lot. But they also bring risks. This article will list several of the best AI stocks under $3. We explain why they matter. We also offer tips to reduce risk and how you might use them in your portfolio.
What It Means: AI Stocks Under $3
An AI stock under $3 is a share that trades below three dollars. These stocks are small or early stage. Some may operate in AI software, others in hardware, others in AI services or robotics. Many still lose money. Many are volatile. But they also may rise fast if things go well (new contracts, good revenues, rising demand, favorable regulation).
If you want more ideas among cheap stocks, see pages like “Stocks Under $3” on MarketBeat or the PortfolioPilot screener for AI stocks under $3.
What to Look for Before Buying
Before buying any AI stock under $3, check:
- Does the company have real AI use? Is it more than just “AI hype”?
- What is the revenue or contract pipeline?
- How is its cash flow? Can it stay alive if sales are weak?
- What is the competition? Big firms may outspend them.
- What catalysts are visible (new contracts, product launches, partnerships, regulatory approvals)?
Examples of AI Stocks Under $3
Here are some AI stocks (or closely related tech/AI) that have traded under or near $3 recently. These may provide inspiration, though none are guaranteed wins.
| Ticker | Company | Approx Price | What It Does | Strengths / Possible Upside |
|---|---|---|---|---|
| C3.ai (AI) | A platform for enterprise AI tools | ~$1-2 range on some screens | Offers AI software for business operations, predictive systems, IoT data analytics | Strong brand; could benefit from more adoption of enterprise AI. But watch financials and margins. (PortfolioPilot) |
| Guardforce AI (GFAI) | Robotics, security AI | under $1 on some stock screens | Provides AI-powered robotics and automation in security and service robotics | Big possibility if robotics adoption expands; risk from execution and financial stability. (PortfolioPilot) |
| IONQ, Inc. (IONQ) | Quantum computing / AI hardware/software blended | around $1-2 levels in some screeners | Works on quantum computing and cloud AI services; may benefit if quantum becomes more mainstream | Big risk but high potential if quantum and AI integration grows. (PortfolioPilot) |
| FiscalNote Holdings, Inc. (NOTE) | AI for policy, data analytics, tracking rules & laws | ~$0.60 or so in some analyses | Uses AI/natural language / data analytics to track legislation/social signals | Hedge fund interest; possible upside if product adoption increases. (Insider Monkey) |
| 8×8, Inc. (EGHT) | Communications with AI / voice / CPaaS | ~ $1.90 in some reports | Offers AI tools for customer engagement & communications platforms | Could benefit from growth in communications tech; margins and competition matter. (Insider Monkey) |
These are examples. Prices change daily. Some may drift above $3 or drop further. Always check up-to-date market price before buying.
Catalysts That Could Push These Stocks Higher
Stocks under $3 often need triggers. Some possible catalysts:
- New partnerships with big companies.
- Positive earnings reports. Even small revenue growth can matter.
- AI product adoption in niche markets (voice assistants, customer service bots, robotics).
- Regulatory or government contracts. AI often draws public sector interest (security, defense, infrastructure).
- Improved financial health (debt reduction, cash flow positive).
For instance, some analysts believe there are stocks under $3 that could trade in double digits by end of 2025 if catalysts line up. See the report from Nasdaq “3 Stocks Under $3 That Can Trade in Double Digits 2025”.
Risks and What Can Go Wrong
Investing in AI stocks under $3 comes with serious risk. Some of the main dangers:
- Very high volatility. A single negative news item can drop the price sharply.
- Lack of profitable business model yet. Many are burning cash.
- Poor liquidity. It may be hard to buy or sell large amounts without affecting price.
- Competition from large, well-funded firms. They may drive down margins or take market share.
- Regulatory risk, especially when AI tools touch privacy, surveillance, safety.
Strategies to Mitigate Risk
Here are ways to reduce risk:
- Start small. Use only a portion of your capital. Don’t bet everything on one stock.
- Use stop-loss or limit orders. Decide your maximum loss ahead of time.
- Follow news and financials closely. Monitor contract wins, revenue reports, AI product launches.
- Seek companies with visible revenue or contracts. Avoid those with only promises.
- Diversify across AI types. Some in hardware, some in software, some in robotics.
How to Use These Stocks in a Portfolio
You might use AI stocks under $3 as part of a speculative wing of your portfolio. They can be balanced with more stable, higher-priced AI names or non-AI investments. For example:
- A small core of low-risk AI stocks.
- A speculative portion in under-$3 stocks.
- Setting aside some funds for safer income or dividend-paying stocks.
If you want ideas for income or more stable investments, you can also explore monthly income from a $50,000 investment.
How Screeners and Tools Can Help
To find the best candidates, use stock screeners. A few useful resources:
- PortfolioPilot’s “AI Stocks Under $3” screener.
- “Best Stocks Under $3” lists from MarketBeat. (MarketBeat)
- Reports like “10 Best AI Stocks to Buy Under $3” from Insider Monkey. (Insider Monkey)
Also, video sources can help get qualitative views. For example:
Sample Low-Cost AI Stocks To Watch
Here are some specific AI or AI-adjacent stocks under $3 that appear in screeners and analyses today:
- C3.ai (AI) – often shown in screeners under $3. Strong enterprise AI tools. (PortfolioPilot)
- Guardforce AI (GFAI) – robotics/security niche. (PortfolioPilot)
- IONQ, Inc. (IONQ) – quantum/AI blend. (PortfolioPilot)
- FiscalNote Holdings, Inc. (NOTE) – AI for policy tracking. (Insider Monkey)
- 8×8, Inc. (EGHT) – AI communications & customer service tools. (Insider Monkey)
These stocks are examples, not recommendations. Always do your own due diligence.
Case Studies: What Worked & What Failed
Some low-price AI stocks saw big runs when they had a real winning story. Others failed when promises were not delivered.
- A stock that lands a big contract or shows strong revenue gains may jump sharply.
- A stock that fails a product test or misses earnings can drop just as fast.
Watching news for these events matters: new product launch, earnings beat/miss, regulatory action, partnerships.
External Analyses and Reports to Check
These external resources offer useful context and picks:
- “2 Artificial Intelligence (AI) Stocks Under $3” report on Yahoo Finance — shows recent picks.
- Nasdaq’s “3 Stocks Under $3 That Can Trade Double-Digits 2025” — good for seeing which low price stocks have catalysts.
- BuyUpside’s sample portfolios for AI-priced-stock ranges — helps to see how others build small-stock AI portfolios.
Alternatives and Related Buckets
If you like AI stocks under $3, you may also like other cheap stock categories. Here are some:
- AI stocks under $2.
- AI stocks under $5.
- Cheap or penny stocks more broadly.
Also, tools and pages like those on MarketBeat or other stock-screening sites give you lists of low-priced stocks. Exploring those helps you spot new opportunities.
Final Thoughts
AI stocks under $3 offer a mix of opportunity and danger. They appeal to investors who want to take small risks with possible big rewards.
- You may hit large gains if a small AI company gets a breakthrough.
- But you may also lose money if things go wrong (product fails, cash runs out).
Key tips:
- Always check the financials, contracts, and business model.
- Use small positions.
- Diversify across different AI themes (software, hardware, robotics, quantum).
- Watch for catalysts.
If you use these stocks as part of a broader strategy, they can make your portfolio exciting without exposing you to too much risk.
