Prediction. Kevin Warsh’s Fed View Could Unlock These 4 AI Stocks Under $10 That the Market Has Left for Dead

Kevin Warsh has put a fresh frame on the inflation debate, arguing that AI-driven productivity gains could allow the economy to grow faster without triggering inflation. If that supply-side view gains traction at the Fed, patience on rates becomes the base case, and the small-cap AI names that have been left for dead suddenly look like coiled springs. Nowhere is that asymmetry sharper than in the cohort still trading under $10.

With Warsh’s productivity thesis as the backdrop, here are four AI stocks under $10 that stand to benefit if the central bank shows patience with inflation in deference to AI-driven output gains.

C3.ai (NYSE: AI)

C3.ai (NYSE:AI | AI Price Prediction) sells enterprise AI applications to commercial and federal customers. Shares closed at $9.03 on May 14, still down 33.01% year to date, which gives retail investors a damaged but cheap entry.

Q3 FY26 was ugly: revenue of $53.26 million fell 46.08% year over year and missed consensus by 29.59%. The bull case rests on the rebuild. Federal, defense, and aerospace bookings jumped 134% YoY, and the restructuring targets ~$135 million in annual operating expense savings. CEO Stephen Ehikian says “C3 AI is now a more agile, more disciplined, and more accountable organization.” The risk is accelerating cash burn, with free cash flow at negative $56.2 million. A patient Fed buys this turnaround time.

BigBear.ai (NYSE: BBAI)

BigBear.ai (NYSE:BBAI) provides AI decision intelligence to defense and national security customers. The stock sits at $4.38, up 24.43% over the past month as government AI spending headlines have returned.

FY26 revenue guidance of $135 million to $165 million implies roughly 17% growth at the midpoint, and the backlog now exceeds $400 million. CEO Kevin McAleenan said the company “reduced our debt by more than 90%” after raising $693 million in 2025. The Ask Sage acquisition adds roughly $25 million in ARR tied to generative AI for defense. The risk: material weakness in internal controls and DOGE-driven contract delays. A dovish Fed eases the duration discount on this story.

SoundHound AI (NASDAQ: SOUN)

SoundHound AI (NASDAQ:SOUN) builds a voice and conversational AI platform for automotive, restaurants, and enterprise. Shares trade at $8.52, with an analyst target of $14.25 implying meaningful upside, supported by six Buy ratings.

Q1 26 revenue rose 52% to $44.20 million, the sixth consecutive EPS beat. Organic auto and IoT revenue grew 88%. The pending LivePerson deal targets a $500 million combined revenue opportunity and access to 25 of the Fortune 100, with 2027 revenue projected at at least $350 million to $400 million. CEO Keyvan Mohajer framed Q1 with “SoundHound started the year strong with our top line growing 52%.” The risk is operating cash burn of $26.3 million and LivePerson integration execution. Productivity-friendly policy keeps high-growth multiples intact.

Agora (NASDAQ: API)

Agora (NASDAQ:API) provides real-time engagement APIs for voice, video, and live shopping, and is increasingly leaning into conversational AI. Shares closed at $3.85, the cheapest name in the group.

Agora is the only profitable AI stock here. Q4 25 revenue grew 10.7% to $38.16 million, the fifth consecutive quarter of GAAP profitability, with net income of $4.92 million. FY25 marked the first full year of profitability since 2018. CEO Tony Zhao noted, “We are pleased to report our fifth consecutive quarter of GAAP profitability.” A $200 million share repurchase program runs through Feb 2027. The risk is China exposure and Shengwang active customers down 5.2% YoY. If Warsh’s view holds, profitable AI infrastructure at a sub-$300 million market cap is a screen-stopper.

Warsh’s supply-side framing is one input among many that could shape the path of rates. Do your own work on guidance, cash burn, and customer concentration before treating any of them as more than a watchlist candidate.