One Stop Systems Inc. (NASDAQ:OSS) is one of the hidden AI stocks under $10 to buy. On January 5, Alliance Global raised its price target for One Stop Systems to $9 from $8.50 while keeping a Buy rating following the company’s $22.4 million sale of its European value-added reseller, Bressner Technology, to Hiper Euro.
The firm noted the sale price exceeded expectations and characterized the divested business as a minimal contributor to shareholder value due to its very low contribution margin. Consequently, Alliance Global suggested that the proceeds from this transaction can be strategically redirected toward future M&A opportunities to drive growth.
A day before that, Roth Capital also increased the price target for One Stop Systems Inc. (NASDAQ:OSS) to $9 from $8 with a Buy rating after the company’s divestment of Bressner Technology. The firm described One Stop as a pure play leader in ruggedized AI, ML, and edge compute solutions, and noted that the sale left the company with a flush balance sheet.
A Super Micro server. Photo from Super Micro website
One Stop Systems Inc. (NASDAQ:OSS) designs, manufactures, and markets rugged high-performance compute, high-speed switch fabrics, and storage systems for edge applications of AI and ML, sensor processing, sensor fusion, and autonomy in the US and internationally.
While we acknowledge the potential of OSS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.