Artificial Intelligence (AI) is one of the fastest-growing sectors in global markets. Companies are using AI in healthcare, finance, security, retail, and even energy. Investors who want exposure to this sector often look at high-priced stocks like Nvidia or Microsoft. But not everyone can afford shares above $500. That’s where AI stocks under $20 come in.
These lower-priced stocks allow small investors to enter the AI market without spending thousands of dollars. They carry risks, but they also carry strong growth potential. In this guide, I’ll explain what AI stocks under $20 are, why investors are interested, and which companies you should consider adding to your watchlist.
Quick Comparison: AI Stocks Under $20
| Stock Name | Ticker | Current Price (Approx.) | AI Focus Area | Risk Level | Growth Potential |
|---|---|---|---|---|---|
| C3.ai | AI | $18 – $20 | Enterprise AI software | High | Strong |
| SoundHound AI | SOUN | $3 – $5 | AI voice recognition | High | Moderate |
| BigBear.ai | BBAI | $2 – $3 | AI analytics for defense | High | Strong |
| Palantir Technologies | PLTR | $15 – $20 | Data and AI integration | Medium | Strong |
| Lantern Pharma | LTRN | $4 – $6 | AI in drug discovery | High | Strong |
| Guardforce AI | GFAI | $5 – $7 | AI robotics and security | High | Speculative |
| Rekor Systems | REKR | $8 – $10 | AI traffic monitoring | High | Moderate |
| FiscalNote Holdings | NOTE | $1 – $2 | AI-driven legal data | High | Moderate |
| Amesite | AMST | $1 – $2 | AI education platforms | Very High | Speculative |
| Innodata | INOD | $12 – $15 | AI data services | Medium | Strong |
Why Focus on AI Stocks Under $20?
- Low entry cost: You don’t need large capital to start investing. Even $50 can buy multiple shares.
- High upside: Many of these companies are still growing. If their technology succeeds, the stock could multiply.
- AI expansion: Businesses worldwide are adopting AI in daily operations, creating strong demand.
- Diversification: Buying smaller AI stocks allows you to spread your risk across several companies.
For investors who want ideas beyond AI, here’s a guide on monthly income from a $50,000 investment.
1. C3.ai (AI)
C3.ai is one of the most popular AI-focused companies trading under $20. It builds enterprise AI software for industries like energy, manufacturing, and defense.
- Why investors like it: C3.ai has government contracts and partners with big names like Microsoft and Google Cloud.
- Risks: The company is not yet profitable and faces strong competition.
- Price range: $18 – $20
MarketBeat’s list of stocks under $20 also highlights C3.ai as a company to watch.
2. SoundHound AI (SOUN)
SoundHound builds AI-powered voice recognition systems. Its technology is used in cars, restaurants, and customer service.
- Why investors like it: Voice AI is a growing industry, and SoundHound has a unique product.
- Risks: Revenue growth is slow, and the stock is volatile.
- Price range: $3 – $5
If you like penny-style investing, check out this guide on cheap stocks under $1.
3. BigBear.ai (BBAI)
BigBear.ai focuses on AI analytics for defense, logistics, and national security. The company works with the U.S. government.
- Why investors like it: Government contracts provide stable demand.
- Risks: Heavy reliance on defense contracts. If deals end, revenue drops.
- Price range: $2 – $3
BigBear.ai is also listed in AI stocks under $5.
4. Palantir Technologies (PLTR)
Palantir is a major name in AI-driven data analytics. It helps governments and companies organize large datasets and integrate AI into decision-making.
- Why investors like it: Palantir has solid revenue, a growing customer base, and strong AI adoption.
- Risks: High valuation compared to earnings.
- Price range: $15 – $20
A detailed article on best AI stocks includes Palantir among the top picks.
5. Lantern Pharma (LTRN)
Lantern Pharma uses AI to discover new drugs and speed up clinical trials. Its AI platform, RADR, analyzes millions of datasets.
- Why investors like it: Healthcare and AI is a powerful combination.
- Risks: Biotech is risky, and many companies fail before drug approval.
- Price range: $4 – $6
For small-scale investing, you might also explore how to invest $10 and earn daily.
6. Guardforce AI (GFAI)
Guardforce AI provides robotics and AI-powered security services. Its robots are used in hospitality, healthcare, and corporate security.
- Why investors like it: Strong potential in AI robotics.
- Risks: Very small company, high volatility.
- Price range: $5 – $7
If you want even smaller picks, check out AI stocks under $2.
7. Rekor Systems (REKR)
Rekor develops AI-driven traffic monitoring systems. Its software tracks vehicles for safety, toll collection, and law enforcement.
- Why investors like it: Smart city development increases demand for traffic AI.
- Risks: Competition from larger companies with more resources.
- Price range: $8 – $10
For speculative investors, AI stocks under $3 may also be appealing.
8. FiscalNote Holdings (NOTE)
FiscalNote uses AI to analyze legal, political, and regulatory data. It helps businesses and policymakers stay updated.
- Why investors like it: Niche market with strong demand for data insights.
- Risks: Small company with limited financial stability.
- Price range: $1 – $2
This stock also appears in speculative AI stocks lists under $20.
9. Amesite (AMST)
Amesite builds AI-powered online learning platforms. Its goal is to make education more accessible through AI.
- Why investors like it: AI in education is an expanding industry.
- Risks: Very small company, high risk of failure.
- Price range: $1 – $2
If you want broader exposure, check out the top 100 stocks under $10.
10. Innodata (INOD)
Innodata provides AI-driven data services, including machine learning training and digital transformation support.
- Why investors like it: Strong partnerships with tech companies.
- Risks: Market competition from bigger firms.
- Price range: $12 – $15
IKnowFirst also covers stocks under $20, and Innodata is frequently discussed as an option.
Are AI Stocks Under $20 Worth Buying?
Yes, but with caution. Stocks in this range can be volatile and speculative. Many of them have high potential, but also a high chance of failure.
Here’s what to consider before buying:
- Research the company: Look at revenue growth, contracts, and partnerships.
- Diversify your portfolio: Don’t put all your money in one stock.
- Think long term: AI adoption is growing, but it takes time.
- Compare risk levels: Some are speculative, while others like Palantir are more stable.
For more ideas, see AI stocks under $10 or AI stocks under $1.
Final Thoughts
AI is reshaping industries and creating new opportunities for investors. While big tech dominates the headlines, AI stocks under $20 give small investors a way to join the trend without breaking the bank.
From Palantir’s data platforms to BigBear.ai’s defense analytics and Lantern Pharma’s drug discovery, each company offers unique growth potential. But remember—these stocks come with risk. Always research carefully and consider your financial goals before investing.
For further reading, check out:
AI is still in its early growth phase, and today’s affordable stocks could become tomorrow’s leaders. If you’re ready to invest smartly and manage risk, these AI stocks under $20 might be the right place to start.
