3 AI Stocks to Buy Under $1 in August 2023

Stocks to buy

Artificial intelligence continues to drive stocks higher. That’s leading to some concerns that some large-cap AI stocks may be overvalued and headed for a correction. But if you’re concerned about chasing stocks such as Nvidia (NASDAQ:NVDA) higher, you may want to look at AI stocks under $1.  

As it relates to artificial intelligence, penny stocks often operate in niche industries. That may not give them the massive revenue streams of large-cap companies like Microsoft (NASDAQ:MSFT). But all investors need is consistent revenue and positive earnings to reap significant gains.  

When a stock trades under $1, concerns pop up about the stock becoming delisted. That could set up investors for unfavorable actions such as a reverse stock split. With that understanding, if you’re comfortable with the ins and outs of AI and have the appetite for some risk, read on for three AI stocks under $1 for your consideration.  

Remark Holdings (MARK) 

Source: Shutterstock

I recently included Remark Holdings (NASDAQ:MARK) on a list of AI penny stocks that may quickly go to $5. My thesis at that time, which still holds, is that Remark develops and deploys AI solutions for a range of applications including facial recognition software, AI-powered retail analytics, and forensic investigations.  

The company operates in sectors like retail, healthcare, and hospitality. These sectors are supposed to be some of the biggest beneficiaries of AI. That’s the reason the company’s jack-of-all-trades strategy may pay off. If AI spans a variety of sectors, it’s good to have products that allow you to compete in as many as possible.  

It is slightly concerning that the company’s revenue and earnings are dropping on a year-over-year basis in a year when AI adoption is expanding. It’s also not widely covered by analysts. But that’s part of the risk of investing in penny stocks.  

Meta Materials (MMAT) 

Source: BLAGORODEZ / Shutterstock.com

Meta Materials (NASDAQ:MMAT) offers a different way for you to invest in artificial intelligence. The company creates and manufactures advanced materials known as meta materials. These materials are essential to make everyday products more sustainable. And in the case of artificial intelligence, smarter as well.  

The company has many patents and even a battery material agreement in place. At the same time, Meta Materials is not yet profitable and has missed revenue projections in each of the last three quarters.  

If those were the only concerns, MMAT stock would be like many penny stocks. However, the company faces the prospect of delisting. That’s because its stock has been trading below $1 since late January 2023. And the worst news is that the company recently received a Wells notice from the SEC. Neither may ultimately be a reason not to own the stock, so you can put MMAT stock on your watchlist now.  

LZG International (LZGI) 

Source: Sergio Photone / Shutterstock.com

One risk of investing in AI stocks under $1 is that they may not be listed on one of the major exchanges. That’s the case with LZG International (OTCMKTS:LZGI). It’s listed on the OTCQB Ventures Market which is made up primarily of early-stage and developing U.S. and international companies.  

But make no mistake about it, this is a pure-play AI company. LZG International’s flagship product is FatBrain. This is AI-driven software that helps companies automate enterprise decision cycles to produce better outcomes across various business interactions without coding. The company also offers AI and machine learning software.  

Because it’s not required to follow the SEC guidelines of stocks on the other exchanges, it is not widely covered by analysts. However, the company is projected to more than double its revenue in 2024 and may even be profitable. It could take some effort to own this stock, but the effort will likely be rewarded in a big way.   

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

Articles You May Like

3 AI Stocks to Dump in July Before They Plummet
3 EV Stocks to Buy at New Lows in July
Buy the Top AI Stocks Before the Disinflation Boom
3 Stocks to Buy to Capitalize on Surging Home Prices
Gold jumps to record above $2,460 an ounce on hopes Fed will soon cut rates