Stocks

Top 3 Cheap AI Stocks With Strong Growth Potential

All three cost-effective stocks have high growth potential in the expanding AI sector due to innovative performance factors

Written By : Pradeep Sharma

Key Takeaways

  • C3.ai offers a pure-play AI investment at a discounted price.

  • Palantir combines strong AI analytics with reliable government contracts.

  • Snowflake powers AI with scalable cloud data solutions.

Artificial Intelligence (AI) is one of the fastest-growing technologies in the world. Companies that are working in AI are seeing huge interest from investors. However, not all AI stocks are expensive. Some are still trading at lower prices and offer strong future growth. This article looks at three AI companies that are currently undervalued but have great long-term potential: C3.ai, Palantir Technologies, and Snowflake.

C3.ai 

Stock Price and Performance

C3.ai is trading at around $26.26, which is over 40% lower than its highest price in the past year. This means the stock is available at a discount compared to where it has traded before. The trading volume is also increasing, which shows that more investors are starting to take an interest in the company again.

What C3.ai Does

C3.ai is a software company that focuses only on AI. It helps large businesses use AI in areas like energy, defense, manufacturing, and more. The company creates platforms that allow clients to build and run AI applications without starting from scratch.

Why It Has Growth Potential

It is a pure AI company, meaning its entire business depends on AI, which can bring high rewards as the industry grows.

The stock is currently cheap, and any good news or contracts can push the price much higher.

Enterprises are spending more on AI, which benefits companies like C3.ai.

Risks to Consider

The company is still not consistently profitable because it invests a lot in research and development.

It faces strong competition from big companies like Microsoft and Google.

Palantir Technologies

Stock Price and Performance

Palantir is currently trading at around $130. It had a great performance over the past year, gaining over 500%, which shows that many investors already believe in its potential. However, recent price movements have shown some small dips, which may offer a good chance to buy.

What Palantir Does

Palantir builds data analysis software. Its platforms help governments and businesses make decisions using AI and big data. Some of its main customers are military and law enforcement agencies, as well as financial institutions and healthcare companies.

Why It Has Growth Potential

It has long-term government contracts, which bring steady revenue.

Its software is used in critical missions, making it hard for clients to switch to competitors.

Palantir is expanding its business with new private companies and startups.

Risks to Consider

The stock is not cheap based on current profits, so any slowdown could affect investor interest.

It relies heavily on government contracts, which may change with political situations.

Snowflake

Stock Price and Performance

Snowflake trades around $209.60. While the stock has dropped slightly from recent highs, this can be seen as a temporary dip, especially for long-term investors looking to buy a strong AI-related company at a better price.

What Snowflake Does

Snowflake is not a direct AI company but provides the tools and infrastructure needed for AI. It helps companies store and manage huge amounts of data in the cloud. AI needs a lot of data to work, so Snowflake plays an important role in the AI system.

Why It Has Growth Potential

Snowflake is one of the leading cloud data platforms in the world.

It allows companies to easily move data and build AI tools without managing servers themselves.

More businesses are moving their data to the cloud, which helps Snowflake grow fast.

Risks to Consider

Big cloud providers like Amazon (AWS), Microsoft (Azure), and Google (Cloud) also offer similar services.

The company spends a lot on expanding its services, which can hurt short-term profits.

Comparison Table

Use Case2023 Cost2025 CostSavings
Chatbot (10k msgs/mo)$500$1996%
Predictive Analytics$50k/ yr$2k/yr96%
Document Processing$15 / doc$ 0.02/ doc99.90%
Image Generation(1k images)$120$497%

Latest Developments

C3.ai stock increased 2.3% on June 4, 2025. Investors are becoming more positive about its future.

Palantir has become one of the best-performing AI stocks over the last year. It has gained over 500%.

Snowflake continues to grow in importance as more companies depend on its platform to manage AI data.

The broader market has seen ups and downs. Companies like Apple and Nvidia are trading differently now, showing a shift in investor interest. This opens a chance for smaller or less expensive AI companies to attract more buyers.

Why These Stocks Are Good Choices

Each of these three stocks offers a unique way to invest in AI:

C3.ai is a pure AI play for those looking for high-risk, high-reward options.

Palantir is good for those who want a mix of AI and reliable clients, especially in government work.

Snowflake is great for those interested in data infrastructure, which is essential for any AI system to function.

They are all different types of companies, which helps in building a more balanced investment in the AI sector.

Things to Watch Going Forward

Quarterly Earnings: Future profit reports will show if these companies are growing or facing issues.

New Contracts: Watch for big deals with governments or large businesses.

Tech Industry Trends: AI is still growing fast, but competition is strong.

AI is becoming a part of almost every industry. While many AI stocks are already very expensive, C3.ai, Palantir, and Snowflake still offer affordable entry points for investors looking at long-term growth. These companies have strong products, growing demand, and real-world applications. Each one brings something different to the table, and together they cover software, data, and analytics—three key areas in the AI revolution.

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