2 Cheap AI Stocks for Traders

SoundHound AI stock just broke above penny stock territory

SentinelOne Inc (NYSE:S) and SoundHound AI Inc (NYSE:SOUN) are this week’s picks for Schaeffer’s Cheap Seats: Stocks Under $20 segment. Below, let’s further explore what makes these two artificial intelligence (AI) names so interesting.

SentinelOne stock is up 0.6% to trade at $19.87 at last check, testing newfound support from the 20-day moving average. Shares recently bounced off the stock’s May 31 nine-month low of $16.83, and sport a 32% year-over-year lead.

It’s also worth noting the equity boasts attractively priced premiums. This is per its Schaeffer’s Volatility Indexes (SVI) of 41% that ranks in the 4th percentile of annual readings.

SoundHound AI stock is breaking out of penny stock territory today, last seen up 21.5% to trade at $5.03. Today’s pop came after the company announced its AI voice assistant with integrated ChatGPT is now live and in production in Peugeot, Opel, and Vauxhall vehicles. SOUND is up 138% so far in 2024, and set to close above the 80-day moving average for the first time since May.

An unwinding of pessimism could create additional tailwinds for SOUN. Short interest rose 4.6% over the last two reporting periods, and now makes up 24.1% of the stock’s available float.

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