11 Best Small Cap AI Stocks To Buy Now

Published on March 24, 2024 at 10:59 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at the 11 best small cap AI stocks to buy now. To skip our detailed analysis of the AI sector, you can go directly to see the 5 Best Small Cap AI Stocks To Buy Now.

AI: A Consequential Technology

Artificial intelligence has taken the world by storm. AI has become one of the most exciting things to come out of the technology sector. As a result, some of the best AI stocks like NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), among others, are working the hardest to contribute to the AI race and maybe even lead it, have been attracting even larger amounts of investor attention. This is unsurprising, considering the immense growth AI has been undergoing. On February 14, George Lee, the co-head of the Goldman Sachs Office of Applied Innovation, discussed the growth potential of artificial intelligence, particularly with regard to geopolitics, and how geopolitics, in turn, may shape an AI-enabled future, on CNBC’s “Capital Connection.” Here are some of his comments:

“For me, where I specialize is really this intersection of generative AI and geopolitics. The rise of this new capability in the world is super consequential for countries and for regions, matters of economics, defense, and even culture itself, as Jensen Huang talked about the other day.”

On being asked how he expects machine intelligence to impact global growth, productivity, and the US-China conflict, Lee made the following comments:

“Well, our economists have called for a very significant impact, over a 10-year period, some 1.5% increase in global GDP as a result of this [AI]. Now, I think the important thing to reflect on that is that it’s a 10 year interval. While this has arrived abruptly, it’s hugely consequential and fascinating, it will take time for this to deepen its impact across economies around the world. And so, we’re very focused on trying to monitor that, and I think, my personal view is that there is going to be remarkable productivity and economic gains emerging from this. There’s also going to be an incredible leap in human creativity and productivity as we partner with machines just to address and solve challenges that have been prohibitively difficult in the past.”

According to Lee, humanity will likely evolve with machines and artificial intelligence, resulting in exceptional growth moving forward. He noted the following:

“In a sense, I think we will co-evolve with these machines, and look, we are very early days in this new generative AI revolution, but the pace of improvement, the trajectory of improvement, is so remarkable, that I think we do have to think pretty broadly about how we’re going to co-exist with machines, how we’re going to cooperate, and how, together, we can elevate humanity.”

Global Leaders in the AI Space

With the discussion on AI rapidly gaining speed and importance across the globe, many are beginning to wonder which global players will lead the way in this new global world order that is so heavily impacted by technology and artificial intelligence in particular. Lee gave his opinion on the matter of global leaders in the AI race as well. Here’s what he had to say:

“The US and China have an early lead in this. Like other technology revolutions, such as the internet, a lot of this sprang from the US, both academic and commercial roots. China is somewhat challenged in this area, both because they’re export-controlled away from some of the key technologies they need, and there’s also this issue of the emergent quality of chatbots being somewhat threatening to regimes that are sensitive to social harmony and stability. But make no mistake, they are a formidable adversary and will be leaders in this space. You then have a series of countries, the EU, England, France, etc., who are going to be very consequential here, particularly in terms of regulation. Then you have countries that have a particular technology edge in this domain, those are places like Taiwan, South Korea, the Netherlands. And then, most interestingly, you have countries like the UAE… who have done extraordinary work in building their Falcon open source model, the work they’ve done around Arabic language foundation models, and just the general infrastructure investing they’re doing.”

Considering the above highlights, we have compiled a list of the best AI stocks to buy, particularly the best small-cap AI stocks to buy now. These include some of the best cheap AI stocks to buy in 2024.

A scientist at a computer station, surrounded by a neural network of artificial intelligence code.

Our Methodology

We used Insider Monkey’s hedge fund data for the fourth quarter to compile our list of the best AI stocks to buy now and then shortlisted the stocks with a market capitalization of less than $2 billion as of March 11. The stocks are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number, highlighting their popularity among investors today. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by over 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Best Small Cap AI Stocks To Buy Now

11. Duos Technologies Group Inc. (NASDAQ:DUOT)

Number of Hedge Fund Holders: 2

Market Capitalization: $29.57 million

Duos Technologies Group Inc. (NASDAQ:DUOT) is a systems software company based in Jacksonville, Florida. The company designs, develops, deploys, and operates intelligent technology solutions powered by AI in North America.

Two hedge funds were long Duos Technologies Group Inc. (NASDAQ:DUOT) in the fourth quarter, with a total stake value of $217,000.

Holding 62,536 shares in the company, Becker Drapkin Management was the largest shareholder in Duos Technologies Group Inc. (NASDAQ:DUOT) at the end of the fourth quarter.

Like NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), Duos Technologies Group Inc. (NASDAQ:DUOT) is on its way to becoming one of the best AI stocks to buy now.

10. DarioHealth Corp. (NASDAQ:DRIO)

Number of Hedge Fund Holders: 4

Market Capitalization: $48.7 million

Four hedge funds were long DarioHealth Corp. (NASDAQ:DRIO) in the fourth quarter, with a total stake value of $6.5 million.

DarioHealth Corp. (NASDAQ:DRIO) is a healthcare technology company based in New York. It offers AI-powered digital health solutions for chronic conditions. It uses AI to monitor the conditions of those using its digital platform for the purposes of health management and is among the best AI stocks to buy.

Nantahala Capital Management was the largest shareholder in DarioHealth Corp. (NASDAQ:DRIO) at the end of the fourth quarter, holding 2.3 million shares in the company.

9. CXApp Inc. (NASDAQ:CXAI)

Number of Hedge Fund Holders: 7

Market Capitalization: $29.46 million

CXApp Inc. (NASDAQ:CXAI) is an application software company based in Palo Alto, California. It provides a workplace experience platform for enterprise customers, and the platform is critically anchored on AI.

Seven hedge funds held stakes in CXApp Inc. (NASDAQ:CXAI) at the end of the fourth quarter, with a total stake value of $154,000.

8. Innodata Inc. (NASDAQ:INOD)

Number of Hedge Fund Holders: 7

Market Capitalization: $204.43 million

G2 Investment Partners Management was the most prominent shareholder in Innodata Inc. (NASDAQ:INOD), holding 125,000 shares in the company.

Based in Ridgefield Park, New Jersey, Innodata Inc. (NASDAQ:INOD) is a research and consulting services company and one of the best AI stocks to invest in. It provides AI data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, alongside AI model deployment and integration services.

Innodata Inc. (NASDAQ:INOD) was spotted in the portfolios of seven hedge funds in the fourth quarter, with a total stake value of $8.1 million.

7. BigBear.ai Inc. (NYSE:BBAI)

Number of Hedge Fund Holders: 13

Market Capitalization: $545.29 million

Analysts at Cantor Fitzgerald hold an Overweight rating alongside a $3.5 price target on BigBear.ai Inc. (NYSE:BBAI) as of March 8.

BigBear.ai Inc. (NYSE:BBAI) is an IT consulting company based in Columbia, Maryland. The company offers AI and machine learning for decision support. It also offers high-end technology and management consulting services and is among the best AI stocks to buy.

Our hedge fund data for the fourth quarter shows 13 hedge funds long BigBear.ai Inc. (NYSE:BBAI), with a total stake value of $1.1 million.

6. SoundHound AI Inc (NASDAQ:SOUN)

Number of Hedge Fund Holders: 13

Market Capitalization: $1.88 billion

SoundHound AI Inc (NASDAQ:SOUN) is an application software company based in Santa Clara, California. The company develops independent voice AI solutions that enable businesses across automatic, TV, the Internet of Things, and customer service industries to deliver high-quality conversational experiences.

There were 13 hedge funds long SoundHound AI Inc (NASDAQ:SOUN) in the fourth quarter, with a total stake value of $12.2 million.

A Buy rating was maintained on shares of SoundHound AI Inc (NASDAQ:SOUN) on March 4, alongside a $7 price target, by analysts at HC Wainwright & Co.

Like NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), SoundHound AI Inc (NASDAQ:SOUN) is one of the best AI stocks to buy today.

Click to continue reading and see the 5 Best Small Cap AI Stocks To Buy Now.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

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11 Best Small Cap AI Stocks To Buy Now

Published on March 24, 2024 at 10:59 am by Fatima Farooq in Hedge Funds, News

AI: A Consequential Technology

Global Leaders in the AI Space

Best Small Cap AI Stocks To Buy Now

11. Duos Technologies Group Inc. (NASDAQ:DUOT)

10. DarioHealth Corp. (NASDAQ:DRIO)

9. CXApp Inc. (NASDAQ:CXAI)

8. Innodata Inc. (NASDAQ:INOD)

7. BigBear.ai Inc. (NYSE:BBAI)

6. SoundHound AI Inc (NASDAQ:SOUN)

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

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11 Best Small Cap AI Stocks To Buy Now

Published on March 24, 2024 at 10:59 am by Fatima Farooq in Hedge Funds, News

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AI: A Consequential Technology

Global Leaders in the AI Space

Best Small Cap AI Stocks To Buy Now

11. Duos Technologies Group Inc. (NASDAQ:DUOT)

10. DarioHealth Corp. (NASDAQ:DRIO)

9. CXApp Inc. (NASDAQ:CXAI)

8. Innodata Inc. (NASDAQ:INOD)

7. BigBear.ai Inc. (NYSE:BBAI)

6. SoundHound AI Inc (NASDAQ:SOUN)

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff