Do you want to invest in artificial intelligence (AI) stocks but don't want to spend thousands of dollars in order to build a position? There are multiple AI stocks you can buy today that haven't been performing all that well over the past year, but still have a lot of encouraging opportunities down the road.
Marvell Technology (MRVL 0.37%), Super Micro Computer (SMCI 7.50%), and UiPath (PATH -0.04%) are all trading below $100. Here's why these stocks might be worth adding to your portfolio right now.
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Marvell Technology
Marvell is a chipmaker that produces custom chips known as application-specific integrated circuits (ASICs). These chips can better meet the needs of specific AI workloads, and the strategy has been working for Marvell. Sales in its most recent quarter (for the period ended May 3) came in at $1.9 billion -- an increase of 63% year over year.
But the big risk is that Marvell depends a lot on hyperscalers and companies that are investing heavily into AI. In its most recent period, a direct customer accounted for 16% of Marvell's total sales while a distributor made up 36% of revenue. And of Marvell's accounts receivable, 72% was related to just five customers.
There's clearly some concentration risk because Marvell's business is going to depend heavily on a few large customers. Throw in the tariff risk and trade uncertainty in global markets these days, and it's little wonder why shares of Marvell are down more than 30% this year.
The stock may, however, look attractive for growth investors who are willing to hang on and endure this volatility. Shares of Marvell are trading at a forward price-to-earnings multiple of 26, which is down from a multiple of more than 40.
Marvell was recently trading at a price of less than $73 and could make for a good long-term buy if you're bullish on AI. But it may not necessarily be a smooth ride.
Super Micro Computer
One AI stock that has been going in the opposite direction this year is Super Micro Computer, also known as Supermicro. It's up more than 60% this year. But that may be a bit misleading as the stock is coming off a tumultuous year in 2024 where it more than tripled in value at one point, only to end up finishing the year up by just 7%.
Concerns relating to its financials and changes in auditors spooked investors, sending shares of Supermicro into a prolonged tailspin late last year. The business looks to have its house in order these days, and investors have been buying the stock up again.
The company makes servers and other IT infrastructure that businesses need in order to scale their operations. It's an exciting opportunity and through the first three months of the year, Supermicro's sales rose by 19% to $4.6 billion. Unfortunately, its margins are thin and the company's operating income declined by 61% during the period, to just $146.8 million.
Supermicro's stock is trading at around $50 and it could have room to rise higher. But it'll need to not only grow its sales, but also improve its margins. It's a bit of a riskier buy than Marvell, but Supermicro could have tremendous upside given the important role it plays for companies growing their AI-powered operations.
UiPath
Rounding out this list is UiPath, a company that's involved in automating tasks and adding efficiency for businesses. Its platform utilizes AI agents, which can be deployed in many sectors and provide value to many different types of companies looking to leverage AI.
The problem is that there is a lot of competition in this space, and UiPath hasn't exactly demonstrated strong demand in recent quarters. For the period ended April 30, its revenue totaled $356.6 million, which was a year-over-year increase of just 6%. And for the current quarter, it expects sales to be up to $350 million, which would be an increase of 11% from a year ago. And the business still isn't profitable, as it posted an operating loss of more than $16.4 million last quarter.
While there is potential for UiPath to benefit from greater AI-related spend, there are some questions about its growth and when it might be able to turn a profit. There's some risk with the stock, but with a price tag of around $12 and its market cap less than $7 billion, there could also be plenty of room for it to rise in value.
