Artificial intelligence stocks have been among the hottest investment trends in 2024. Led by industry giants like Nvidia Corporation (NVDA) and Super Micro Computer Inc. (SMCI), AI stocks have delivered explosive returns for investors. However, with top AI stocks currently trading for over $800 per share, many retail investors are on the hunt for artificial intelligence stocks under $10 that could explode over the next decade. Here are three AI stocks under $10 to buy and hold right now in March 2024.
Note: all price data sourced from Yahoo Finance on Mar. 8, 2024.
Genius Sports Ltd. (GENI)
- Price as of Mar. 8, 2024: $5.96
Genius Sports Ltd. (GENI) is a leading provider of sports data and technology solutions to various stakeholders in the sports industry, including sports leagues, teams, media companies, and sportsbooks. The company specializes in the collection, management, and distribution of real-time sports data, which is utilized for a variety of purposes such as live betting, broadcasting, analytics, and fan engagement.
Genius Sports is not your typical artificial intelligence stock. It offers a range of products and services, including data feeds from Second Spectrum, integrity services, live streaming solutions, and sports betting solutions like BetVision.
Despite missing EPS estimates, the company finished the year strong with a strong quarter in Q4 2023. Last year, Genius Sports demonstrated strong financial performance, with group revenue reaching $413 million, a 21% increase year-over-year, surpassing initial guidance. Group adjusted EBITDA more-than-tripled to $53 million, also exceeding expectations. The company saw impressive results overall with revenue hitting $127 million and adjusted EBITDA reaching $12 million, representing growth of 21% and 349%, respectively.
Looking ahead to 2024, Genius Sports anticipates continued growth, targeting revenue and adjusted EBITDA of $480 million and $75 million, with nearly 300 basis points of margin expansion. Genius Sports also expects to generate positive cash flow throughout 2024, allowing it to capitalize on the fast-growing sports betting industry, which is expected to grow to $182.12 billion by 2030, according to Grand View Research.
SoFi (SOFI)
- Price as of Mar. 8, 2024: 7.71
SoFi Technologies, Inc. (SOFI) is a financial technology company that offers a wide range of products and services aimed at improving personal finance management. Founded in 2011, SoFi initially gained recognition for its student loan refinancing offerings but has since expanded its offerings to include services such as personal loans, home loans, investing, banking, insurance, and financial planning.
The official bank of the NBA, SoFi’s platform provides users with tools and resources to manage their finances more effectively, including budgeting tools, investment options, and educational resources. The company emphasizes technology-driven solutions and aims to provide its users with a seamless and intuitive experience across its various products and services.
In addition to its consumer-facing offerings, SoFi also operates SoFi Stadium in Los Angeles, which serves as the home to the NFL’s Los Angeles Rams and Los Angeles Chargers. Like its partnership with the NBA, the stadium is a key part of SoFi’s branding and marketing efforts, showcasing its commitment to innovation and modernization in the financial services industry.
One of the top fintech stocks, SoFi has shown some resiliency since getting beaten down after an EPS miss on its latest earning report. In Q4 2023, SoFi Technologies, Inc. posted GAAP net revenue reaching $615 million, a 35% increase year-over-year, and adjusted EBITDA hit a record of $181 million, up 159%.
SoFi also experienced significant member growth, adding nearly 585,000 new members in Q4, bringing the total to over 7.5 million, up 44% year-over-year. Product growth was also strong, with nearly 695,000 new products added in Q4, totaling over 11.1 million, a 41% increase year-over-year.
Looking ahead, management anticipates adjusted net revenue of $550 to $560 million and adjusted EBITDA of $110 to $120 million for Q1 2024.
NIO Inc. (NIO)
- Price as of Mar. 8, 2024: 5.90
One of the best lithium stocks to buy in 2024, NIO Inc. (NIO) is a Chinese electric vehicle (EV) manufacturer known for its premium electric cars and innovative technology. Founded in 2014, NIO has quickly emerged as a prominent player in the EV market, offering vehicles that combine cutting-edge design, performance, and advanced autonomous driving features.
NIO’s flagship models include the ES8, ES6, and EC6, which are luxury electric SUVs known for their stylish design, long-range capabilities, and high-performance specifications. The company has built a strong brand image and a loyal customer base in China, supported by its emphasis on user experience, technology, and customer service.
In addition to its vehicle sales, NIO generates revenue from various sources, including energy solutions, vehicle financing, and other mobility services. The company continues to invest heavily in research and development to further enhance its product offerings and expand its market reach.
In Q4 2023, NIO delivered strong quarterly results, including 50,045 vehicles, up 25.0% from Q4 2022. Full-year 2023 saw 160,038 deliveries, a 30.7% increase from 2022. Overall, vehicle sales totaled $2,174.5 million in Q4 2023, up 4.6% from Q4 2022 and vehicle margin improved to 11.9%.
