Affordable AI stocks have drawn significant interest from investors looking to tap into the surging AI market without breaking the bank. These low-cost stocks often hold promising potential for growth, making them an attractive option for individuals investing through platforms like Robinhood or similar apps. From AI-driven solutions to autonomous systems, these stocks present opportunities if you are exploring top AI stocks under $5. Here’s a closer look at five American AI stocks that fall under the $5 price range and their potential in 2025.

Top AI Stocks Under $5 that Could Pump in 2025

Best AI Stocks Under $5 to Watch

AI stocks under $5 offer an exciting opportunity for investors to explore affordable AI investments in a rapidly growing sector. These stocks present significant growth potential as artificial intelligence continues to revolutionize industries like healthcare, logistics, and public safety. Platforms like Robinhood make it easier than ever for new investors to access and trade these promising low-cost options.

1. BigBear.ai Holdings, Inc. (BBAI)

BigBear.ai Holdings, Inc. is a prominent player in the AI space, focusing on providing advanced analytics and decision-support solutions for both commercial and government clients. BigBear.ai has been making strides in sectors like defense, healthcare, and logistics. The company’s ability to harness AI for predictive modeling and forecasts has positioned it as a vital asset in decision-making processes. If you are seeking Artificial Intelligence stocks under $5, BigBear.ai represents a worthwhile consideration due to its steady advancements and client diversification.

2. One Stop Systems Inc (OSS)

One Stop Systems Inc, a tech company specializes in high-performance computing solutions tailored for AI workflows. The company develops edge computing systems, enabling real-time data processing—a crucial factor for industries such as autonomous vehicles, defense, and entertainment. Over the years, OSS has gained attention for its focus on delivering hardware solutions optimized for machine learning and artificial intelligence. As part of the top AI stocks under $5, OSS offers steady growth potential in AI-backed technologies.

3. Ontrak, Inc. (OTRK)

Ontrak, Inc. operates in the healthcare sector, combining AI with behavioral health services. The company focuses on guiding individuals through personalized treatment programs, leveraging AI-driven analytics to improve outcomes. Ontrak faced challenges in 2023, including revenue declines, but recent efforts toward restructuring and optimized solutions have shown promise. Ontrak could turn out to be a hidden gem as the company sustains its vision for accessible care.

4. Rekor Systems, Inc. (REKR)

Rekor Systems, Inc. brings cutting-edge AI solutions to public safety and infrastructure. Its AI-powered vehicle recognition technology is widely adopted in law enforcement and traffic management systems. The company’s consistent focus on innovative solutions has earned it a solid position in a competitive market. If you’re seeking AI stocks under $5 Robinhood, Rekor Systems might be worth considering due to its focus on government contracts and scalable products.

5. VERSES AI Inc. (VRSSF)

VERSES AI Inc. creates ground-breaking AI modeling platforms. The company leverages its Cognitive Network Operating System (OS) to create intelligent, interconnected systems catering to supply chain and logistics industries. VERSES AI stands out among the best AI stocks under $5 due to its innovative approach in effectively integrating AI within complex operational networks. This unique business model holds immense promise for growth in the years ahead.

Market Capitalization: A Tale of Scale

Market capitalization, or “market cap,” is a measure of a company’s total value. It’s a crucial indicator of size and market dominance.

At $1.75 billion, BigBear.ai (BBAI) is the clear heavyweight in this group. Its valuation places it in the small- to mid-cap category, suggesting a more established presence and greater investor confidence compared to the others. This size can provide more stability and access to capital for growth.

In contrast, Rekor Systems ($140.23M), One Stop Systems ($117.52M), and VERSES AI ($101.87M) are all small-cap stocks. While they have established a foothold, their smaller size makes them more susceptible to market volatility.

Finally, Ontrak, Inc. (OTRK) stands out with a market cap of just $425,780. This micro-cap valuation reflects severe financial distress, including a recent bankruptcy filing, and signals an extremely high-risk profile for investors.

Stock Price: More Than Just a Number

A stock’s price is what it costs to buy a single share. While not a direct measure of a company’s value on its own, it can reflect market sentiment and accessibility for retail investors.

• One Stop Systems ($5.36), BigBear.ai ($4.73), and VERSES AI ($4.85) trade in a similar range. These prices are accessible but also indicate that they are still developing their market position.
• Rekor Systems ($1.11) has a lower price point, which can attract speculative interest but may also suggest underlying business challenges or a need to prove its long-term profitability.
• Ontrak’s ($0.0601) sub-dollar price is a significant red flag. Stocks trading this low are often at risk of being delisted from major exchanges and typically face existential business challenges.

Risks vs. Opportunities: Where Should Investors Look?

Every investment carries a balance of risk and potential reward. Here’s an analysis of what investors should consider for each of these five companies.

1. BigBear.ai (BBAI): The AI Contender

Opportunities:
As the largest company in this group, BBAI is well-positioned in the booming AI industry. Its focus on government and defense contracts provides a potentially stable revenue stream. The growing need for data-driven decision-making across all sectors could fuel significant long-term growth.

Risks:
The AI market is intensely competitive, with tech giants like Google, Microsoft, and numerous startups vying for market share. BBAI must continue to innovate and secure large-scale contracts to maintain its growth trajectory. Any slowdown in government spending or failure to win key commercial clients could impact its performance.

2. One Stop Systems (OSS): The Niche HPC Specialist

Opportunities:
OSS operates in the specialized field of high-performance computing at the edge. This is a critical growth area, driven by trends like AI, IoT, and autonomous systems that require powerful processing away from the cloud. Its focus on rugged and customized systems for military and industrial use creates a defensible niche.

Risks:
As a smaller player, OSS may face challenges competing with larger hardware manufacturers. The company’s growth is tied to the success of its clients in industries like defense and autonomous transportation, which can have long and unpredictable sales cycles.

3. Rekor Systems (REKR): The Smart City Enabler

Opportunities:
Rekor’s focus on AI-driven infrastructure for traffic and public safety taps into the global “smart city” movement. As governments invest in modernizing their urban environments, Rekor’s solutions could see increasing demand. Its technology offers a clear value proposition: safer and more efficient roadways.

Risks:
Selling to government agencies can involve bureaucracy and long procurement processes. Rekor also faces competition from other technology providers in the intelligent transportation space. Its small market cap makes it a speculative investment until it can demonstrate consistent profitability and large-scale adoption.

4. VERSES AI (VRSSF): The Ambitious Innovator

Opportunities:
VERSES AI is working on next-generation artificial intelligence, aiming to build a platform for creating truly intelligent and autonomous systems. If its “Genius” platform gains traction, the company could become a key player in the future of AI. The potential upside is substantial, given its ambitious goals.

Risks:
The company is in the early stages of development and faces immense technological and market hurdles. It is competing in a field where deep-pocketed rivals are investing billions. As with many pioneering tech firms, the risk of failure is high, and its path to profitability is uncertain.

5. Ontrak, Inc. (OTRK): A Cautionary Tale

Opportunities:
Given its current financial state, finding opportunities in OTRK is extremely difficult. Any potential for a turnaround would depend on a successful restructuring through its Chapter 7 bankruptcy, which is a liquidation process. This is an exceptionally high-risk scenario with a low probability of a positive outcome for current shareholders.

Risks:
The risks are overwhelming. The company has filed for bankruptcy liquidation, its stock price is nearly zero, and its market cap has been decimated. For the average investor, this stock represents a near-certain loss of capital.

FAQs

What is the most promising AI stock?

The most promising AI stock depends on individual investment goals. For low-cost options, BigBear.ai and Rekor Systems have shown growth potential in analytics and AI-driven infrastructure solutions.

What is the cheapest AI stock?

Among the listed companies, Ontrak, Inc. and VERSES AI Inc. are among the AI penny stocks under $5, offering a low-cost entry point for investors.

What are the best AI stocks to buy now under $5?

Some of the best options include BigBear.ai, Rekor Systems, and VERSES AI, given their potential for growth in sectors like analytics, public safety, and logistics.

Does Warren Buffett own any AI stocks?

Warren Buffett has not shown significant investment in specific AI stocks, focusing more on established, blue-chip companies.

What is the best AI penny stock to buy in 2025?

VERSES AI Inc. and Ontrak, Inc. stand out as AI penny stocks under $5 with unique applications in logistics and healthcare, respectively.

What AI stocks under $5 will boom in 2025?

Rekor Systems, with its focus on government contracts, and BigBear.ai, leveraging predictive analytics, are potential candidates for booming under AI stocks under $5 in 2025.

Conclusion

AI stocks under $5 provide a unique opportunity for investors to diversify their portfolios at a low cost while betting on technological innovation. Companies like BigBear.ai, One Stop Systems, Ontrak, Rekor Systems, and VERSES AI represent a mix of industries and applications where AI continues to grow. For those seeking top 10 AI stocks under $5, these options demonstrate scalable potential that could yield significant returns.

Disclaimer:

All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.