In this article, we will discuss 10 Under-the-Radar AI Stocks to Buy in 2026.
The biggest winners of the artificial intelligence boom may not be the household names dominating headlines today; instead, they may be the overlooked companies quietly supplying the tools, infrastructure, and specialized technologies powering the AI revolution behind the scenes.
While investors have poured trillions of dollars into well-known tech giants, some of Wall Street’s most successful billionaires and hedge fund managers believe the next wave of AI winners could emerge from lesser-known companies operating beneath the market’s radar. Legendary hedge fund manager Stanley Druckenmiller has repeatedly argued that transformational technologies create long investment cycles, often producing unexpected winners beyond the obvious market leaders. Similarly, Ken Griffin has emphasized that the true value of AI lies not only in the models themselves but in the data infrastructure, computing systems, and software ecosystems supporting them. Meanwhile, Ray Dalio has warned investors not to focus solely on the most popular names, noting that history shows many of the greatest gains from technological revolutions ultimately accrue to companies enabling widespread adoption.
The data supporting the long-term AI investment thesis is difficult to ignore. According to the Stanford Institute for Human-Centered Artificial Intelligence, global private AI investment remains at historically elevated levels, while enterprise adoption continues to accelerate across industries. Research from McKinsey & Company estimates that generative AI alone could contribute up to $4.4 trillion annually to the global economy through productivity gains and operational efficiencies. Meanwhile, the International Data Corporation projects worldwide AI-related spending could surpass $500 billion annually within the next several years.
For investors searching for the next generation of market leaders, under-the-radar AI stocks offer exposure to one of the most powerful technological shifts in history before many of them become household names.
With this context in mind, here are some under-the-radar stocks to buy in 2026.
Our Methodology
To compile our list, we reviewed various online resources and financial media reports to identify the best under-the-radar AI stocks. From among these stocks, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2026 database of 1022 elite hedge funds. Finally, the 10 best under-the-radar AI stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Under-the-Radar AI Stocks to Buy in 2026
10. Cerebras Systems Inc. (NASDAQ:CBRS)
Number of Hedge Fund Holders: NA
On June 8, UBS initiated coverage of Cerebras Systems Inc. (NASDAQ:CBRS) with a Buy rating and a $300 price target, highlighting the company’s wafer-scale engine as the world’s largest compute chip. According to the firm, the technology delivers a significant performance advantage over traditional GPUs in certain high-speed inference applications, allowing Cerebras to address a premium segment of the rapidly expanding AI inference market. UBS also pointed to the company’s growing commercial traction as evidence that its differentiated architecture is gaining acceptance among enterprise and AI customers.
Earlier that same day, Morgan Stanley analyst Joseph Moore initiated coverage of Cerebras Systems Inc. with an Overweight rating and a $250 price target. The firm noted increasing demand for low-latency AI inference solutions and argued that Cerebras has uniquely positioned itself to capitalize on this trend through its wafer-scale computing technology. Morgan Stanley further highlighted the company’s expanding contract pipeline, which it believes supports a path toward approximately $6 billion in revenue by 2028, with the potential for additional upside if adoption accelerates.
Cerebras Systems Inc. is an artificial intelligence and semiconductor company focused on developing massive wafer-scale processors and supercomputers optimized for AI training and inference workloads. Founded in 2015 and headquartered in Sunnyvale, California, the company serves cloud providers, foundation model developers, research institutions, and enterprise customers seeking faster and more efficient AI computing solutions.
9. Inuvo, Inc. (NYSEAMERICAN:INUV)
Number of Hedge Fund Holders: 2
On May 19, Freedom Broker downgraded Inuvo, Inc. (NYSEAMERICAN:INUV) to Hold from Buy and lowered its price target to $2.50 from $4.20 following a first-quarter report that significantly missed the firm’s expectations across most key metrics. The analyst noted that the company’s current financial weakness appears largely tied to its ongoing business transformation efforts. While near-term performance remains under pressure, Freedom Broker acknowledged that Inuvo’s longer-term investment case increasingly depends on management’s ability to successfully monetize its proprietary IntentKey platform and improve operating margins.
A few days earlier, on May 15, Alliance Global lowered its price target on Inuvo, Inc. to $4 from $6 while maintaining a Buy rating on the shares. The firm characterized first-quarter conditions as challenging but emphasized that the company is pursuing a more focused business model designed to create sustainable growth and profitability over time. Despite the reduced forecast, Alliance Global continues to view Inuvo’s strategic repositioning as a pathway toward stronger long-term operating performance.
Inuvo, Inc. is an advertising technology and artificial intelligence company that develops predictive, privacy-focused AI solutions for marketers. Founded in 1987 and headquartered in Little Rock, Arkansas, the company specializes in helping brands identify consumer intent based on content engagement rather than personal data tracking.
8. CXApp Inc. (NASDAQ:CXAI)
Number of Hedge Fund Holders: 6
On June 3, CXApp Inc. (NASDAQ:CXAI) announced the acquisition of EngineRoom, a transaction expected to significantly strengthen the company’s financial profile. The acquisition is projected to increase CXApp’s annualized revenue run rate from approximately $4 million to more than $12 million while adding roughly $1.6 million in adjusted EBITDA. EngineRoom contributes an estimated $8.1 million in annualized revenue, approximately 94% of which is recurring, while also bringing more than 50 customer relationships and experienced leadership to the combined organization.
Previously, on March 17, CXApp Inc. unveiled its AI-powered Zero-Touch Campus Deployment platform, a new solution designed to dramatically simplify enterprise workplace technology deployments. The platform allows organizations to rapidly activate AI-enabled workplace environments by automatically importing workplace data through secure integrations with enterprise management systems. By reducing implementation timelines from weeks to minutes, the technology enhances workplace automation, indoor navigation, analytics, and employee experience capabilities across large corporate campuses.
CXApp Inc. is a business-to-business software-as-a-service company that provides an AI-powered workplace experience platform. Founded in 2022 and headquartered in Palo Alto, California, the company offers a mobile-first application that integrates workplace tools such as desk booking, office navigation, employee communications, workplace analytics, and facility management into a single digital ecosystem.
7. POET Technologies Inc. (NASDAQ:POET)
Number of Hedge Fund Holders: 14
On May 18, POET Technologies Inc. (NASDAQ:POET) completed a registered direct offering that generated approximately $400 million in gross proceeds through the sale of common shares and warrants to a single institutional investor. Notably, the transaction was priced at a premium to the company’s prevailing market price, reflecting strong investor confidence in POET’s long-term prospects. Management plans to use the proceeds to expand manufacturing capacity, accelerate research and development initiatives, pursue strategic acquisitions, grow its light-source business, and support broader operational expansion.
A few days earlier, on May 14, POET Technologies Inc. and Lumilens announced a strategic supply and joint-development agreement focused on advancing wafer-level photonic integration for next-generation AI infrastructure. As part of the partnership, Lumilens placed an initial purchase order valued at $50 million for POET’s optical interposer-based engines. The companies indicated that the relationship could ultimately scale to more than $500 million in cumulative purchases over five years, providing substantial commercial visibility for POET’s technology platform.
POET Technologies Inc. develops high-speed optical engines, light sources, and photonic integrated circuits designed for artificial intelligence, hyperscale data center, and telecommunications applications. Founded in 1985 and headquartered in Toronto, Ontario, Canada, the company focuses on enabling faster and more energy-efficient optical connectivity solutions for the rapidly expanding AI infrastructure market.
6. Rezolve AI PLC (NASDAQ:RZLV)
Number of Hedge Fund Holders: 14
On June 8, Rezolve AI PLC (NASDAQ:RZLV) announced the appointment of Michele Fisher as Chief Marketing Officer. Fisher joins the company from Microsoft, where she served as Global Strategy Director, bringing extensive experience in technology strategy, marketing, and enterprise growth. The appointment reflects Rezolve AI’s efforts to strengthen its leadership team as it expands the commercial reach of its artificial intelligence platform and pursues broader adoption across enterprise and retail markets.
Earlier, on May 18, Enhanced announced a strategic partnership with Rezolve AI PLC to help develop the future of its direct-to-consumer telehealth platform, Live Enhanced. The collaboration encompasses AI technologies, digital consumer engagement initiatives, and event sponsorship opportunities. Under the agreement, Rezolve will support the development of AI-powered medical concierge capabilities, intelligent customer engagement tools, and the mobile-first digital infrastructure underpinning Enhanced’s consumer platform, further expanding the practical applications of Rezolve’s technology portfolio.
Rezolve AI PLC is an enterprise technology company focused on developing generative AI solutions for retail, e-commerce, and enterprise operations. Founded in 2016 and headquartered in London, United Kingdom, the company provides agentic commerce platforms, AI-powered virtual assistants, and automation tools that help businesses improve customer engagement, streamline operations, and facilitate digital transactions.
5. iBio, Inc. (NASDAQ:IBIO)
Number of Hedge Fund Holders: 16
On June 8, Raymond James initiated coverage of iBio, Inc. (NASDAQ:IBIO) with an Outperform rating and a $5 price target, highlighting the company’s emerging obesity-focused pipeline and attractive risk-reward profile. The firm pointed to IBIO-600, which recently entered clinical development, as well as IBIO-610, a follow-on candidate that may differentiate itself through higher levels of Activin E inhibition compared with competing INHBE-targeting approaches. According to Raymond James, the company’s valuation does not fully reflect the potential of its pipeline, particularly as demand for innovative obesity and cardiometabolic therapies continues to expand.
Earlier, on June 2, iBio, Inc. announced the dosing of the first participant in its Phase 1 clinical trial evaluating IBIO-600, marking a major milestone for the company. The candidate is iBio’s lead obesity and cardiometabolic asset and represents the company’s first program to enter human clinical testing. The achievement formally transitions iBio from a preclinical biotechnology company to a clinical-stage developer, providing investors with a key catalyst that could generate additional value as clinical data emerges over the coming quarters.
iBio, Inc. is an AI-driven biotechnology company focused on discovering and developing precision antibody therapies for obesity, diabetes, cardiometabolic diseases, and oncology indications. Founded in 2008 and headquartered in San Diego, California, the company combines artificial intelligence-driven drug discovery tools with advanced biologics development capabilities to identify novel therapeutic candidates targeting large and underserved healthcare markets.
4. Veritone, Inc. (NASDAQ:VERI)
Number of Hedge Fund Holders: 19
On June 4, Veritone, Inc. (NASDAQ:VERI) announced that its advanced artificial intelligence solutions are being utilized by the Cold Case Foundation to assist in the re-examination of the JonBenet Ramsey investigation. The company’s AI-powered tools are helping investigators analyze large volumes of information more efficiently, demonstrating the practical application of Veritone’s technology in complex law enforcement and forensic investigations. The collaboration also provides a high-profile example of how artificial intelligence can enhance modern criminal justice efforts by uncovering insights from previously difficult-to-analyze data sets.
A few days earlier, on June 1, UBS assumed coverage of Veritone, Inc. with a Neutral rating and a $2.50 price target, reduced from $6. While the firm acknowledged Veritone’s position as an AI software provider that helps organizations extract value from unstructured data, it remains cautious regarding the timing and predictability of certain large data refinery contracts. UBS noted that achieving sustained profitability remains a key factor that investors will monitor as the company continues to scale its platform and customer base.
Veritone, Inc. is an enterprise artificial intelligence company centered around its proprietary aiWARE operating system, which transforms audio, video, text, and other unstructured data into actionable intelligence. Founded in 2014 and headquartered in Irvine, California, the company serves clients across media, entertainment, public sector, legal, and commercial markets through a growing suite of AI-powered analytics and automation solutions.
3. Innodata Inc. (NASDAQ:INOD)
Number of Hedge Fund Holders: 20
On June 4, Wedbush raised its price target on Innodata Inc. (NASDAQ:INOD) to $120 from $100 while maintaining an Outperform rating. The firm cited growing confidence in the company’s ability to sustain robust revenue growth through fiscal 2026 and beyond, driven by increasing demand for its products and services that support artificial intelligence development. Wedbush believes Innodata’s offerings have become increasingly essential to the training and optimization of advanced AI models, positioning the company to benefit from continued investment across the AI ecosystem.
Previously, on May 14, Wedbush increased its price target on Innodata Inc. to $100 from $80 following what it described as a standout first-quarter performance and a strong outlook. The firm also applied a higher valuation multiple, reflecting greater confidence in the company’s long-term growth runway. Wedbush continues to view Innodata as one of the more compelling beneficiaries of the accelerating adoption of generative AI technologies and maintains its Outperform rating on the shares.
Innodata Inc. is a global data engineering company that develops and deploys generative and traditional artificial intelligence solutions. Founded in 1988 and headquartered in Ridgefield Park, New Jersey, the company provides services including data collection, annotation, model evaluation, and AI safety testing, while also operating software platforms focused on healthcare and media intelligence applications.
2. Mitek Systems, Inc. (NASDAQ:MITK)
Number of Hedge Fund Holders: 21
On May 13, Mitek Systems, Inc. (NASDAQ:MITK) announced that its Verified Identity Platform is now available through the FICO Marketplace, expanding access to its identity verification and fraud prevention technologies. The integration enables enterprises to more easily deploy trusted identity solutions within existing decision-making workflows while leveraging artificial intelligence, analytics, and data services. Management emphasized that embedding identity intelligence directly into enterprise risk processes is increasingly important as fraud threats become more sophisticated and AI-driven.
Earlier, on May 7, Mitek Systems, Inc. reported second-quarter revenue of $54.84 million, exceeding consensus expectations of $52.59 million. The company also delivered record revenue and profitability, supported by 18% year-over-year growth in its software-as-a-service business as customers processed more transactions through Mitek’s platform to combat AI-enabled fraud. Encouraged by strong customer demand and expanding relationships with major financial institutions, management raised its full-year outlook and projected third-quarter revenue above analyst expectations.
Mitek Systems, Inc. is a global software company specializing in digital identity verification and fraud prevention technologies. Founded in 1986 and headquartered in San Diego, California, the company’s solutions enable businesses to securely verify identities, authenticate documents, and streamline digital onboarding processes across financial services, fintech, and other regulated industries.
1. Lantronix, Inc. (NASDAQ:LTRX)
Number of Hedge Fund Holders: 24
On June 8, Canaccord initiated coverage of Lantronix, Inc. (NASDAQ:LTRX) with a Buy rating and a $10.50 price target, citing the company’s position as a provider of Edge AI and Internet of Things solutions across several rapidly growing markets. The firm highlighted Lantronix’s expertise in systems-on-module, edge AI development kits, routers, modems, engineering services, and video processing technologies. According to Canaccord, the company’s diversified product portfolio and exposure to military drones, smart cities, industrial automation, and enterprise networking create multiple avenues for future growth.
Previously, on May 20, Safe Pro announced progress in its collaboration with Lantronix, Inc. to integrate AI-powered threat detection capabilities into Lantronix’s System-on-Module platform for robotic edge processing applications. The partnership is focused on developing embeddable chipsets capable of enabling real-time video and sensor-data analysis for drones and autonomous systems without relying on cloud connectivity. The initiative expands the addressable market for both companies by targeting defense, security, and commercial autonomy applications where rapid on-device decision-making is increasingly critical.
Lantronix, Inc. is a provider of secure Edge AI and Industrial Internet of Things solutions that help organizations connect, manage, and monitor mission-critical equipment. Founded in 1989 and headquartered in Irvine, California, the company delivers hardware, software, and SaaS platforms serving industries including defense, enterprise IT, industrial automation, transportation, and smart-city infrastructure.
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