What Are The Best AI Small Cap Stocks? [2023]

Introduction

Here, we’ll examine some of the Best AI Small Cap Stocks to purchase. Visit 5 Best Small Cap AI Stocks To Buy Now for more of our pick of AI stocks. The most discussed technological topic nowadays is without a doubt artificial intelligence (AI). It’s crucial to consider businesses engaged in the development and use of AI if you want to profit from the AI market. NVIDIA, Microsoft, and Alphabet are a few companies that hedge funds are interested in when it comes to AI.

5 Best AI Small Cap Stocks

  1. Remark Holdings (NASDAQ: MARK)

For businesses in a variety of industries, Remark develops and deploys AI products and AI-based solutions. In the fields of finance, retail, entertainment, education, the workplace, and public safety, the organization offers services to enterprises. Shares of Remark have historically underperformed the market, with the stock down more than 73% over a year. But YTD, the stock has increased by around 9%. The remark is a pure micro-cap speculative play with a market valuation of under $15 million, 14.3 million outstanding shares, and a public float of only 12.8 million shares.

2. Innodata (NASDAQ: INOD)

A technological business called Innodata offers all-inclusive data management and processing solutions. The company’s area of expertise is using cutting-edge AI and machine learning (ML) technology to give its clients powerful problem-solving tools. The market capitalization of Innodata is $311 million, and there are now 27 million outstanding shares of its 22 million public float. This year, INOD stock has performed nicely, rising 281% year to date and 70% in May.

3. SoundHound AI (NASDAQ: SOUN)

For voice-activated devices and mobile applications, SoundHound AI specializes in AI solutions. In terms of speech recognition technology, the firm is a pioneer. It has a renowned speech recognition software called SoundHound that has been downloaded more than 315 million times globally, and it has worked with top automakers to incorporate its technology into automobiles. At $2.86 per share, SOUN has increased 61% year so far. With 166.6 million shares in the public float and 216.9 million shares outstanding, the business has a market valuation of $620 million.

4. BigBear.ai Holdings (BBAI on the NYSE)

BigBear.ai offers AI and ML decision assistance solutions. The business provides high-end technology and consulting services and operates in two segments: analytics and cyber. By gathering, analyzing, and synthesizing data, BigBear.ai gives its clients the ability to make decisions in real time. Shares of BigBear.ai have been up 248% year to date. The stock, meanwhile, has down 56% over the past year. 142 million shares of BBAI are outstanding, with a market valuation of $335 million, and 133 million shares in the public float.


5. Guardforce AI (NASDAQ: GFAI)

In Thailand, Guardforce AI has been a pioneer in providing all-inclusive cash solutions and handling services. Leveraging its solid base and safe logistics, the firm is extending its products to include AI and robotic solutions. By creating cutting-edge AI and robotics technology, the business hopes to increase operational effectiveness, build a strong position in the Asia Pacific area, and eventually go global.

7 Best Performing AI Stocks

TickerCompanyPerformance (Year)
SYMSymbotic Inc.216.20%
UPSTUpstart Holdings, Inc.191.94%
NVDANVIDIA Corporation157.07%
AIC3.ai, Inc.142.46%
HLXHelix Energy Solutions Group, Inc.136.55%
PROPROS Holdings, Inc.57.78%
DTDynatrace, Inc.46.82%

Best Mid Cap Stocks to Buy in 2023

  1. Aehr Test Systems (AEHR) Sector: Technology

$1.5 billion in market value; YTD return: 143.2%

The semiconductor stock AEHR is on fire right now thanks to the robust demand for its test systems, which enable foundries to package and manufacture their chips. In 2023, there will be a huge demand for microchips because of the recent disruptions in the supply chain and the concurrent general advancement of technology.

Despite having a lower profile than major design or manufacturing companies like Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) or Intel Corp. (INTC), this small-cap stock is an essential component of the world’s manufacturing industry.

The cherry on top is that Aehr has found a sector in which it can provide support for the producers of chips for electric vehicle use.- a speciality that contributes significantly to the company’s recent rise in fiscal 2024 projection, which now anticipates revenue growth of 90% and net income growth of over 50%.

2. Ameresco Inc. (AMRC) Sector: Industrials

$3 billion in market value; 2.2% YTD return.

Ameresco, a business that develops clean technology, may not have had the best year-to-date performance, but it has fantastic near-term momentum after nearly tripling from its 52-week lows this spring. By installing solar arrays, upgrading HVAC systems, and consulting on power infrastructure, AMRC plans and implements projects that lower the energy consumption of facilities like industrial parks or office buildings.

This service is in high demand from various clients, including local and federal government organizations, healthcare providers, transportation providers, and commercial enterprises. In partnership with a Colorado electric cooperative on a battery energy storage project, it just inked the largest contract in its business history; in part as a result of this announcement, shares are up roughly 30% in the previous 30 days.

3. Amphastar Pharmaceuticals Inc. (AMPH) Sector: Healthcare

$3 billion market value; 116.6% YTD return.

One of the riskiest investments out there may be made by small pharmaceutical businesses. Based on research findings for their newest products, distribution agreements, and prospective takeover interest from Big Pharma companies, they experience dramatic ups and downs. One of these tiny pharmaceutical companies, AMPH, focuses mostly on injectable and inhalable medicine.

One of AMPH’s specialized products is an immediate injection for blood clots or medications that assist with contrast agents used in imaging. Contrary to several smaller pharmaceutical companies, AMPH is comfortably profitable and projects significant revenue growth of 20% for both this fiscal year and the following one, giving it a solid foundation to continue building on its already outstanding pace.

4. Cactus Inc. (WHD) Sector: Energy

$3.2 billion in market value; 1.5% YTD return.

WHD may not instantly jump out as one of the top small-cap companies to purchase right now with a slightly positive year-to-date performance. The company’s wellhead system design and maintenance business may not be the most attractive. However, given that energy costs are still high and that demand has been high, it is undoubtedly seeing some positive business trends. The business anticipates more than 60% growth this year and an additional increase of about 15% in fiscal year 2024.

With earnings per share estimated to increase by more than 50% this year and another 75% in fiscal year 2024, profits are also expected to soar. WHD is somewhat protected from the volatility of the energy market as it is neither actively finding nor selling fossil resources. So WHD can be a wise growth investment if you’re looking for a small-cap stock that is not dependent on oil prices.

Dave & Buster’s Entertainment Inc. (PLAY)

$2 billion market value; 32.1% YTD return.

Dave & Buster’s is the place for you if you have kids and need to kill time on the weekends or if you’re just a child at heart who enjoys playing some games while enjoying a drink. Operations were destroyed by the pandemic a few years ago because, at the height of the COVID-19 epidemic, sharing food and video game controllers was strictly forbidden.

However, PLAY stock has now recovered and is back to its levels from the beginning of 2020. The fundamentals are also improving as consumer spending continues to be robust. For the current fiscal year, the corporation anticipates sales growth of approximately 20% year and more than 30% earnings growth on top of that.

Conclusion

In this article, we learn about Best AI Small Cap Stocks. Innodata Inc. and SoundHound AI, Inc. are two small-cap AI stocks to take into account. Concerning generative AI data engineering, Innodata offers business process and consultancy services. They just closed a transaction with a significant technological business, which anticipates substantial growth in 2024. Speech recognition experts SoundHound AI provides services for conversational voice assistants. Hedge fund investments have been viewed by both businesses.

FAQs

What AI stock is the best?

The best-performing AI stock in the last year was Nvidia Corporation (NVDA). Analysts anticipate substantially higher annual profit growth over the following five years, compared to the anaemic 5% earnings growth during the previous five years.

Which AI stock prediction model is the best?

Time series data on the stock price. Recurrent Neural Networks (RNNs) or LSTMs are examples of popular machine learning models used to predict time series data, including weather forecasts, election results, housing values, and, of course, stock prices.

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