As we delve deeper into the digital age, artificial intelligence (AI) continues revolutionizing various industries, from healthcare to finance to retail. While large-cap tech giants often dominate the headlines, there’s a world of opportunity in small-cap AI stocks. These companies are often at the forefront of innovation, leveraging AI to disrupt traditional markets and drive growth.
This blog post will explore the top 10 small-cap AI stocks investors should watch in 2024. These stocks represent promising opportunities in the dynamic landscape of AI-driven technologies.
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Perion Network:
The most well-known feature of Perion is its intelligent hub, which links advertisers and buyers while optimizing placements and purchases. That technology depends on algorithms for machine learning, but Perion’s work on generative AI may end up being much more fascinating.
A few months ago, the business introduced WAVE, an audio advertising application that narrates commercials using generative AI. This makes it possible to tailor advertisements based on the intended demographic, time, location, and even meteorological conditions.
According to Perion’s statistics, using this technology yields more significant results than traditional commercials, with 2.4 times the visit-rate lift and 117% of the additional sales lift. It is also less expensive at scale than using human voice actors.
Retailers like Pep Boys and Albertson’s have embraced the technology, which can be found on popular music platforms like iHeartRadio, Spotify, and SiriusXM Radio. It’s also one of several tactics the business is using to boost income in the retail media sector, where revenues increased 196% to $20.2 million in the fourth quarter.
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Better Online Solutions
Over the past three years, B.O.S. Better Online Solutions’ earnings per share have increased significantly. So much so that evaluating the company’s future based on this three-year growth rate wouldn’t be unfair. Therefore, it would be preferable to isolate the increase rate over the previous year for our research. B.O.S. Better Online Solutions’ EPS increased from US$0.16 to US$0.37 in the past year. A 136% annual growth rate is undoubtedly impressive.
Examining the changes in a company’s revenue and earnings before interest and tax (EBIT) margins is one technique to confirm its growth. The good news is that EBIT margins increased by 2.9 percentage points to B.O.S. Better Online Solutions, and the company’s revenues are expanding.
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Opera Ltd.
Opera Ltd. is not just your average web browser company; it’s also a player in the AI space. Leveraging AI and machine learning technologies, Opera delivers personalized content recommendations, ad targeting, and user experiences across its platforms. As digital advertising continues to evolve, Opera’s AI capabilities position it well to capitalize on the growing demand for targeted advertising solutions.
Based on the actual recommendations (Buy, Hold, Sell, etc.) issued by four brokerage firms, Opera Limited currently has an average brokerage recommendation (ABR) of 1.00 on a scale from 1 to 5 (Strong Buy to Strong Sell). Strong Buy is indicated by an ABR of 1.00.
Four recommendations, or 100% of the total, are Strong Buys and are the source of the current ABR.
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Mitek Systems, Inc.
Mitek Systems, Inc. pioneered AI-powered mobile capture and identity verification solutions. The company’s advanced AI algorithms enable seamless document scanning, facial recognition, and biometric authentication on mobile devices. With the rise of digital banking, e-commerce, and remote identity verification, Mitek’s AI-driven technologies play a critical role in combating fraud and enhancing user experience.
On Tuesday, April 9, 2024, the price of Mitek Systems’ stock increased by 0.275%, from $14.55 to $14.59. The stock moved 3.42% from a day low of $14.34 to a day high of $14.83 during the most recent trading day. Over the last two weeks, the price has increased by 13.1%, which has increased in 7 of the previous 10 days. On the last day, there was a -11 thousand share decline in volume. A total of 292 thousand shares were bought and sold for about $4.26 million.
The short-term trader may find a very excellent selling opportunity when the stock is in the upper part of a broad and weak rising trend, as a response towards the lower portion of the trend can be anticipated.
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SoundHound AI Inc.
For the fourth quarter of 2023, SoundHound AI, a company that offers voice artificial intelligence (AI) solutions, reported $17.1 million in sales. Although that was an impressive 80% increase over the same period last year, it was still just above the $17.7 million consensus projection. The top line came below the middle of SoundHound AI’s quarter-end estimate range of $16 million to $20 million.
More significantly, SoundHound’s gross margin rose to 77% last quarter, up six percentage points. As a result, the company’s net loss decreased from $0.15 per share to $0.07 per share during the same time last year. But SoundHound’s loss was just a cent more than what Wall Street had predicted.
The business anticipates sales in 2024 between $63 million and $77 million, or a 52.5% growth at the halfway point. That would represent a faster rate of revenue growth than in 2023.
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BigBear.ai Inc.
BigBear.ai Inc. shows AI-powered analytics and intelligence solutions for defense, intelligence, and federal agencies. The company’s advanced AI algorithms analyze data to provide actionable insights and support mission-critical decision-making. With national security concerns rising and governments investing heavily in AI technologies, BigBear.ai is well-positioned to capitalize on this growing market. For investors seeking exposure to the defense and intelligence sectors, BigBear.ai is a standout among the best small-cap AI stocks.
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Innodata Inc.
Innodata Inc. is a leading provider of AI and data engineering services, helping organizations unlock the value of their data through advanced analytics and machine learning. The company’s AI-driven solutions encompass data annotation, natural language processing, and predictive analytics, empowering businesses to make data-driven decisions.
With the exponential growth of data and the increasing importance of AI in business strategy, Innodata’s services are in high demand across industries as one of the best small-cap AI stocks Investors looking to capitalize on the data-driven economy should consider Innodata as a top small-cap AI stock.
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CXApp Inc.
CXApp Inc. specializes in AI-powered customer experience solutions for the retail, hospitality, and entertainment industries. The company’s platform leverages AI algorithms to personalize customer interactions, drive engagement, and enhance loyalty. With the rise of omnichannel retail and the growing importance of customer experience, CXApp’s AI-driven solutions are gaining traction among businesses seeking to differentiate themselves in a competitive market.
For investors bullish about the future of retail and hospitality, CXApp is a promising small-cap AI stock to watch in 2024.
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DarioHealth Corp
DarioHealth Corp is a pioneer in digital health solutions powered by AI and data analytics. The company’s flagship product, the Dario Blood Glucose Monitoring System, utilizes AI algorithms to provide personalized insights and recommendations for diabetes management. With the prevalence of chronic diseases on the rise and the growing demand for remote healthcare solutions, DarioHealth’s AI-driven platform is well-positioned for growth. Investors interested in the intersection of healthcare and technology should consider DarioHealth as a top small-cap AI stock for 2024.
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Duos Technologies Group Inc.
Duos Technologies Group Inc. is a leader in AI-driven intelligent security and monitoring solutions for transportation and critical infrastructure sectors. The company’s advanced AI algorithms analyze video feeds, sensor data, and other inputs to detect real-time anomalies and potential security threats. With the increasing focus on safety and security in transportation and infrastructure, Duos Technologies’ AI-powered solutions offer a compelling value proposition.
Investors looking for exposure to the burgeoning security technology market should keep an eye on Duos Technologies as one of the best AI stocks for 2024.
Bottom Line
Small-cap AI stocks offer investors an exciting opportunity to capitalize on the transformative power of artificial intelligence. The companies mentioned in this blog post represent some of the best small-cap AI stocks to watch out for in 2024, with promising growth prospects across various industries. From conferencing solutions to logistics optimization to digital health, these companies leverage AI to drive innovation and create value for shareholders. As the AI revolution unfolds, investors can position themselves for success by investing in these dynamic and forward-thinking companies.
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