Core Insights - The article discusses the 13 best AI stocks to buy under $20, highlighting the significant role of artificial intelligence in investment strategies over the past two years, contributing to record highs in the equity market [1] - Concerns about an AI bubble are rising, with experts suggesting the need for diversification into stocks trading at discounted valuations [3][4] - A Bank of America survey indicates that a third of fund managers view the AI bubble as a major risk, yet this has not significantly dampened overall positive market sentiment [4][5] Industry Overview - The AI sector has been a driving force behind the recent equity market rally, with major tech companies significantly influencing the S&P 500 index [1] - The AI boom has led to historical highs in stock valuations, prompting investors to reconsider their strategies [2] - The concept of a "rational bubble" has been introduced, suggesting that while there are opportunities, only a few companies will emerge as winners [3] Company Insights - Veritone Inc. (NASDAQ:VERI): - Current share price is $6.14, with a 180% increase over the past six months [9] - Analysts at Needham initiated coverage with a 'Buy' rating and a $10 price target, expecting continued outperformance driven by growth in its aiWARE platform and other market opportunities [10][11][12] - Spectral AI Inc. (NASDAQ:MDAI): - Current share price is $2.22, with 7 hedge fund holders [13] - The company announced a $7.6 million offering to support the expansion of its DeepView System, which is aimed at enhancing clinical indications and preparing for commercial readiness in 2026 [13][14][15] - Spectral AI utilizes AI and multispectral imaging for medical diagnostics, particularly in assessing wound healing potential [16]