Top 7 Cheap AI Stocks Under $5 to Watch

Key Takeaways

• AI stocks under $5 offer high growth potential but come with significant risks like volatility and liquidity issues.
• Intellectia.AI provides powerful AI tools to help you analyze and select the best AI stocks under $5.
• Top AI stocks under $5 include BBAI, OSS, OTRK, ICAD, NRDY, RR, and RZLV, each with unique strengths in AI innovation.
• Strategies for investing in these stocks include using AI-driven tools, starting small, and monitoring market trends.
• Intellectia.AI’s features like the AI Stock Picker and Swing Trading signals can help you make informed decisions.

Introduction

Have you ever wondered how to tap into the AI revolution without spending a fortune? AI stocks under $5 offer an affordable way to invest in cutting-edge technology. These stocks, often from smaller companies, can be volatile, making them risky but potentially rewarding. 

Fortunately, Intellectia.AI provides AI-driven tools to simplify your investment decisions. In this article, you’ll learn what AI stocks under $5 are, why they’re worth considering, how to pick the best ones, and strategies to invest wisely using Intellectia.AI’s features.

Source: intellectia.ai

What Are AI Stocks Under $5?

AI stocks represent companies developing or using artificial intelligence technologies, such as machine learning algorithms or AI-powered hardware. When these stocks trade under $5, they’re often called penny stocks, typically from smaller firms in early growth stages. 

These companies operate in diverse sectors like healthcare (like AI for diagnostics), robotics (like autonomous systems), analytics (like predictive modeling), and public safety (like AI-driven surveillance). While they offer innovation, their low price often reflects higher risks due to limited market presence or financial instability.

Why Invest in AI Stocks Under $5

Investing in AI stocks under $5 can be an exciting opportunity, but it’s not without challenges. Here’s why you might consider them and the risks involved:

Benefits

• Accessibility: Low share prices mean you can buy more shares with less capital, amplifying potential gains if the stock rises.
• Growth Potential: The AI market is projected to grow 25x (from 2023, $189 billion) to $4.8 trillion by 2033, according to the UN Trade and Development (UNCTAD) report. Small AI companies could see significant upside as they scale.
• Diversification: Investing in multiple AI stocks under $5 spreads risk across various AI applications and industries.
• Innovation Exposure: You gain a stake in companies shaping the future of healthcare, education, defense, and more through AI advancements.

Source: UN Trade and Development (UNCTAD)

Risks

• Volatility: Penny stocks can experience sharp price swings, leading to potential losses.
• Liquidity Issues: Low trading volumes may make it hard to buy or sell shares without affecting prices.
• Speculative Nature: Many small AI firms are unproven, with no guarantee their products will succeed commercially.

Criteria for Selecting the Best AI Stocks Under $5

Choosing the right AI stocks under $5 requires careful analysis. Here are key factors to consider:

• Revenue Growth and Cash Flow: Seek companies with consistent revenue increases and positive cash flow, signaling financial health.
• AI Technology and Product Offerings: Evaluate whether the company’s AI solutions are innovative and competitive.
• Industry Partnerships and Client Base: Strong partnerships or a growing client base indicate market trust and potential.
• Recent News and Earnings Reports: Stay updated on company performance through earnings and news, available via Intellectia.AI’s News section.
• Trading Volume and Float Size: Higher trading volumes suggest better liquidity, making trading easier.

Intellectia AI offers tools like the AI Stock Picker and AI Screener to analyze these factors efficiently, helping you identify undervalued AI stocks.

Source: intellectia.ai

7 Top AI Stocks Under $5

AI stocks under $5 are a gateway to investing in innovative companies at a fraction of the cost of larger tech giants. Below, we’ve curated seven top picks, each excelling in unique AI applications, from defense to retail automation. Selected based on growth potential, recent performance, and market relevance as of June 9, 2025, these stocks offer diverse opportunities.

BigBear.ai (BBAI)

BigBear.ai develops AI-driven decision intelligence platforms, serving critical sectors like defense, manufacturing, and healthcare. Its solutions focus on predictive analytics, cybersecurity, and data integration to solve complex challenges. Trading at $3.87, BBAI recently partnered with Hardy Dynamics to integrate AI into U.S. Army drone swarms, enhancing autonomous capabilities. Its acquisition of PANGIAM bolsters computer vision for border security applications. 

BBAI stands out for its mission-critical AI and strong defense contracts, making it ideal for investors seeking exposure to national security technologies. Its consistent revenue growth and strategic partnerships signal robust growth potential.

Source: intellectia.ai

One Stop Systems (OSS)

One Stop Systems specializes in rugged high-performance computing for AI and machine learning at the edge, serving defense, aerospace, and commercial markets. Priced at $3.27, OSS expanded its business development team in 2025 and showcased advanced AI solutions at NVIDIA GTC Paris 2025, highlighting its rugged computing innovations. 

Its partnerships with NVIDIA and focus on edge AI for autonomous systems and IoT make it a strong contender. OSS is unique for its niche in rugged environments, appealing to investors interested in defense and industrial applications.

Source: intellectia.ai

Ontrak, Inc. (OTRK)

Ontrak leverages AI and telehealth to deliver behavioral healthcare, targeting mental health and substance use disorders. Trading at $1.50, it recently launched the Ontrak Advanced Engagement System, enhancing AI-driven patient analytics, and secured $10M in financing to fuel expansion. 

OTRK’s focus on AI in mental health taps into a growing healthcare need, making it a compelling pick for socially impactful investments. Its low price reflects higher risk but also significant upside potential.

Source: intellectia.ai

iCAD, Inc. (ICAD)

iCAD provides AI-powered solutions for breast cancer detection, density assessment, and risk evaluation, improving diagnostic accuracy for healthcare providers. Priced at $3.84, iCAD launched ProFound Cloud, a cloud-based AI platform, and expanded globally through partnerships with Google Health and other international firms. 

Its specialized AI applications and global reach make it a stable choice in the healthcare sector. iCAD is ideal for investors seeking impactful, less volatile AI stocks.

Source: intellectia.ai

Nerdy, Inc. (NRDY)

Nerdy operates Varsity Tutors, an AI-driven education platform offering personalized tutoring and learning solutions. Trading at $1.78, it introduced an AI-Generated Lesson Plan Creator and AI-Enabled Chat Tutoring powered by ChatGPT, catering to the growing demand for digital education. 

NRDY’s focus on AI in education positions it for growth in a rapidly expanding market. Its affordability and innovation make it a top pick for investors betting on edtech.

Source: intellectia.ai

Richtech Robotics Inc. (RR)

Richtech Robotics develops AI-driven robots for the service industry, including food and beverage automation. Its ADAM robot, priced at $2.37, gained attention at CES 2024 and 2025 for its human-like interactions, enhancing efficiency in hospitality and retail. 

RR’s innovative robotics solutions and growing market presence make it a standout for investors interested in automation. Its unique niche in service robotics offers significant growth potential.

Source: intellectia.ai

Rezolve AI PLC (RZLV)

Rezolve AI provides generative AI solutions for retail and e-commerce, enhancing consumer engagement and transaction efficiency. Trading at $2.07, it surpassed $50B in gross merchandise value (GMV) in 2025 and is live with over 50 major enterprises, including top retailers. 

RZLV’s rapid enterprise adoption and leadership in retail AI make it a top choice for investors seeking exposure to e-commerce innovation.

Source: intellectia.ai

Strategies for Investing in Cheap AI Stocks Under $5

Investing in AI stocks under $5 demands a disciplined approach to balance high rewards with inherent risks. Start with small positions to limit exposure, as these stocks can experience sharp price swings. Use limit orders to control your entry and exit prices, avoiding impulsive decisions driven by market fluctuations. Stay informed by monitoring news and market trends with tools like Intellectia.AI’s News to catch catalysts early. 

Decide whether you’re aiming for long-term growth or short-term gains—long-term investors should prioritize fundamentals, while short-term traders can leverage Intellectia.AI’s Daytrading Center for real-time signals. Explore Intellectia.AI’s Swing Trading and AI Trading Strategies to optimize your investment approach and stay ahead of market trends.

Source: intellectia.ai

Conclusion

AI stocks under $5, such as BigBear.ai, One Stop Systems, Ontrak, iCAD, Nerdy, Richtech Robotics, and Rezolve AI, offer an exciting opportunity to invest in the AI revolution at an affordable price. These companies are driving innovation across defense, healthcare, education, and retail, but their volatility requires careful research and risk management. 

By leveraging platforms like Intellectia.AI for AI-driven stock analysis, price predictions, and trading signals, you can navigate this dynamic market with confidence. Whether you’re a seasoned investor or just starting, these stocks provide a low-cost entry into AI’s future. 

Sign up at Intellectia.AI today to access real-time stock picks, market insights, and strategies to grow your portfolio effectively.