5 Best Small-Cap AI Stocks

2. Digi International Inc. (NASDAQ:DGII)

Number of Hedge Fund Holders: 14

Market Cap as of August 21: $1,220,000,000

Digi International Inc. (NASDAQ:DGII) provides business and mission-critical Internet of Things products, services, and solutions in the U.S. and globally. The company utilizes AI-based applications for various purposes, such as its accessibility interface allowing persons with disabilities to adjust website interfaces and design them to their personal needs.

For the third quarter, Digi International Inc. (NASDAQ:DGII) had EPS of $0.45, beating estimates by $0.08. The company’s revenue was $104 million, up 30.9% year-over-year and also beating estimates by $7.4 million. On August 5, Canaccord’s T. Michael Walkley reiterated a ‘Buy’ rating on Digi International Inc. (NASDAQ:DGII) shares. The analyst also raised his price target on the shares from $30 to $41.

Out of 895 hedge funds that filed 13Fs for the second quarter, 14 were long Digi International Inc. (NASDAQ:DGII). Their total stake value was $62.9 million. That was a notable increase from nine hedge funds long DGII in the previous quarter, with a total stake value of $44.3 million.